A Comparison of the Business Environments of Two Emerging Economies

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doi:10.3844/ajebasp.2012.59.64

Abstract

Problem statement: Brazil and Mexico, the two largest emerging economies of Latin America, have undergone significant transformation in the past decades providing unique business opportunities to international entrepreneurs. To take advantage of the business opportunities in these emerging markets, however, entrepreneurs need a basic understanding of the economic and regulatory developmental patterns that have characterized each country. Conclusion/Recommendations: This study provides a preliminary review of economic and regulatory factors affecting the business environments of Mexico and Brazil. Emphasis is given to the developmental path taken by each country in its economic liberalization and the implications of these differences for international entrepreneurs interested in pursuing business opportunities in these emerging markets.

Highlights

An international entrepreneur, whether through exporting, licensing, or foreign direct investment, "creates wealth and employment that benefits individuals and nations" (Hisrich, 2009)
Over the past 20 years, Brazil and Mexico have been seen as leaders in the emerging markets of Latin America and are seen as attractive for trade and foreign investment
The purpose of this study is to provide a preliminary review of economic and regulatory factors affecting the business environments of Mexico and Brazil

Summary

Introduction

Whether through exporting, licensing, or foreign direct investment, "creates wealth and employment that benefits individuals and nations" (Hisrich, 2009). The opening of the Mexican economy to Foreign Direct Investment (FDI) was directly tied to Mexico's trade liberalization policies. According to the Foreign Investment Law in Mexico, for economic development in Brazil in the 1980s out of 704 business activities, 656 are open for 100% focused on establishing domestic industries in order

Objectives

Results

Conclusion