Latin American Market Research Articles

The Chinese Model: Analysis of the Investment of Chinese Mining Enterprises in Latin America

Recent years have witnessed China’s increasing presence in Latin American countries, specifically focusing on FDI in the natural resource sector. However, researchers have found that Chinese enterprises invested overseas will likely be involved in conflicts with local stakeholders and have difficulty seeking a social license to operate (SLO). Therefore, it is worth exploring the mechanism of Chinese investments in the Latin American market and the management of corporate social responsibility (CSR) of Chinese enterprises in foreign investment. The main research objectives of the thesis are summarised below. (1) Exploring the mechanism of Chinese enterprises entering Latin America, especially the relationship between Chinese state-owned enterprises (SOEs) and the state government. (2) Analyzing the interactions between Chinese mining SOEs and non-governmental stakeholders in Latin America and the causes of mining conflicts. (3) Describing Chinese enterprises’ management of CSR overseas, especially in seeking the social license to operate (SLO).

Responsible consumption trend in Generation Z and millennials its impact on SDG 12. A Peruvian case study

PurposeThis study aims to analyze the responsible consumption of Generation Z and millennials in the Latin American market, with special emphasis on the Peruvian case, to identify their differences with consumers born in 1980 and earlier and to evaluate their contribution to Sustainable Development Goal 12.Design/methodology/approachThe study was conducted on a sample of 309 persons living in Lima. After developing and validating an instrument, an online questionnaire was used to collect data. These data were analyzed descriptively and inferentially, using chi-square tests to validate the relationship between variables.FindingsThe study identifies and explains the new trend of responsible consumption among Generation Z and millennials in emerging markets, where end consumers interact with and prefer products and services from companies that demonstrate responsible behavior and offer trust. It identifies new consumption variables that go beyond the traditional ones.Research limitations/implicationsThe study reveals a trend in the responsible consumption of Generation Z and millennials in Peru. However, it is necessary to complement the study in other countries in the region, as well as to study the new generations, such as the alpha generation and their consumption patterns.Practical implicationsThe new trend of responsible consumption among Generation Z and millennials is forcing companies to implement strategies and develop corporate social responsibility programs. These companies must demonstrate ethical, environmental, socially responsible and sustainable behaviors in their daily operations to satisfy their stakeholders.Originality/valueThe study reveals a new trend in Peru, a developing country, where the market – the end consumer – is more informed and therefore demands better corporate performance from companies, including care for the environment and a contribution to society that includes a good relationship with its stakeholders.

Comparative analysis of accounting information quality amongst French, Brazilian and Latin American companies

Purpose: This work aimed to compare the Accounting Information Quality (AIQ) of publicly traded companies in markets with different levels of economic development, represented by France, Brazil and other Latin American countries (these together). Methodology: The methodological approach was quantitative, using descriptive and exploratory statistics, and regression with unbalanced panel data. The data used encompassed the following periods: between 1987 and 2017, for the French market; between 1995 and 2017, for the Brazilian market; and between 1989 and 2015, for the Latin American market. Results: The results pointed to structural differences in AIQ in financial statements between the markets analyzed, indicating that the more developed market has better AIQ. Contributions of the Study: As a practical contribution, this research can support investor decisions, while the academic knowledge generated reveals that markets in different economic contexts have different levels of AIQ.

A Comparative Study on the Trade Structure between China and Major Spanish American Countries

As one of the largest emerging economies in the world, the Latin American region is also a region with high global strategic value. The trade between 19 Spanish American countries and China has a significant impact on economic and trade cooperation between China and Latin America. This article is based on the perspective of trade commodity structure, analyzing trade data between China and Spanish American countries in recent years, comparing and studying the import and export commodity structure between China and three major Spanish American countries: Mexico, Chile, and Peru, and analyzing the changes. Finally, in response to the issues identified in the study, some suggestions are proposed for trade exchanges between China and Spanish American countries, with the hope of providing reference for optimizing the trade commodity structure between China and Spanish American countries and for enterprises to further develop the Latin American market.

Problemática del acceso a los medicamentos: disponibilidad y la producción local en América latina

Inequality in access to medicines is perceived as a symptom of the weaknesses of the health system and implies a failure on the part of governments to fulfill their obligations to their citizens in terms of their right to health protection. Integrating the perspective of health as an inherent right of the population and, at the same time, the perspective of health as a strategic space for the development of the productive and technological base, value creation, generation of investment, income, employment, knowledge and innovation, are key to improving access. The objective of this paper is to present the problem of access to medicines from the perspective of their availability and to describe the situation of the Latin American market. The Latin American scenario is complex: countries with different economic realities, failed integration projects, public health spending below 6%, low investment in research and development, preference for imports, non-convergent legislation and tendencies towards nationalism in high-income countries for the return of production to the country of origin. Despite the limitations described above, there are productive capacities in the region that need to be strengthened. Brazil, Argentina, Mexico, Colombia and Chile are the countries called upon to lead regional production through diversification. At this time, the solution is for the region to put regional projects before individual interests in order to achieve sanitary self-sufficiency. Keywords: Access; production; availability; integration; legislation; regulatory agency; Latin America

남미공동시장(MERCOSUR)과 한국의 교역구조에 관한 연구

Purpose - The purpose of this study is to analyze Korea’s trade relations centered on the MERCOSUR, a major economic integration in Latin America, and identify its problems and suggest measures that can be taken by the government and corporations to reinforce economic cooperation.
 Design/methodology/approach - To improve the level of contribution of the study, an empirical analysis is necessary. However, due to limited data access, the study will approach the topic of trade relations between Korea and the MERCOSUR with various statistics and literature.
 Findings - First, there is an urgent need for changes in import-export goods between Korea and the MERCOSUR, as trade is focused on specific items. Second, although foreign direct investment from Korea to the MERCOSUR is centered in manufacturing and mining industries, there should be different investment strategies by countries and industries. Third, it is necessary to reinforce commercial cooperation. Korea currently has Free Trade Agreements with Chile, Peru, and Columbia, but not with MERCOSUR. Therefore, Korea must take active measures to sign an TA with MERCOSUR, which has been put on hold.
 Research implications or Originality - Latin America has the most thriving market when it comes to Free Trade Agreements worldwide. MERCOSUR is a South American Trade Bloc established by the Treaty of Asunción in 1991 and Protocol of Ouro Preto in 1994. Its full members are Brazil, Argentina, Uruguay and Paraguay. However, there is still a lack of research on the MERCOSUR, and corporations that aim to enter the Latin American market face difficulties due to lack of information. By investigating MERCOSUR and its prospects and analyzing the trade relations with Korea, this study will provide strategic measures for corporations that wish to enter the Latin American market.

Gender Social Bonds in the Latin American Market

Although issuances of sustainable debt are growing worldwide, there is a lack of studies that allow a better understanding the social bond issuances, particularly those with a gender focus, which are directly related to the achievement of the Sustainable Development Goals 5, 8, 9, and 10. This study addresses the identified knowledge gap by examining the overall state of the gender social bonds in the Latin American market between 2019 and 2022. The results revealed that a total of USD 1 billion was issued by 12 issuers conducting 14 issuances across six countries. Also, most issuances were financial corporations (58.4%) and supranational banks had a pivotal role in this market by being buyers and/or lead managers. As the first study conducted on this topic, this represents a milestone in sustainable finance research. Finally, this study will allow policy makers, regulators, and researchers to promote the issuance of gender social bonds.

An affordable bioadsorbent system to treat arsenic-contaminated drinking water in the developing world: Prototyping and economic assessment

The contamination of surface and groundwater with arsenic is an urgent problem in many countries where the population does not have any other water sources. A new renewable/recoverable sugarcane bagasse anion adsorbent (SBAA) for arsenic removal was prepared using a greener, cleaner, and sustainable synthesis method in a mini-pilot reactor. SBAA was prototyped for the treatment of arsenic-contaminated groundwater. Tests carried out with the prototype connected to household clay ceramic water filters showed that SBAA achieved 95 ± 3% arsenic removal, reaching arsenic levels below the WHO’s limit of 10 µg L−1. SBAA obtained the NSF/ANSI 61–2016 safety certification, which allows its safe and commercial use. Comparing the performance of the SBAA with commercial materials demonstrates its potential to compete with other technologies in the market. The SBAA is efficient, even in the presence of interfering contaminants. The technology validation classified it at technology readiness level 4. The financial analysis of the proposed business model considered a total sale of 180,000 units in 5 y (semi-industrial process), 4% of the Latin American market, and a sales price of USD $6.95 per unit. A Net present value of USD $52,690.51, internal return rate of 28%, payback of 3.0 y, discounted payback of 3.4 y, and breakeven point of 1.6 y were obtained. The upscaling potential of the SBAA technology was demonstrated, considering technical and market aspects for the development of competitive renewable-based technologies not yet available in the market for the treatment of water contaminated with arsenic.

The Role of Green Supply Chain Management Practices on Environmental Performance of Firms: An Exploratory Survey in Brazil

Our work is one of the rare studies that sought to verify the relationship between green supply chain management practices and environmental performance in companies in an emerging Latin American market. We surveyed in the specialized literature on environmental management and green supply chain management (GSCM) for practices were most cited and can influence this relationship. From this review, an e-survey was constructed and answered by 79 environmental or supply chain/logistics managers from the surveyed sample. The results indicate that there is a positive and significant relationship between the adoption of green supply chain management practices and the environmental performance of the companies. We found that GSCM practices: environmental management with total quality (GSCM4), cooperation with suppliers to achieve environmental management objectives (GSCM7), and cross-functional cooperation for environmental improvements (GSCM3), in this order. These are the main GSCM practices that influence the environmental performance in the surveyed companies. Thus, our study adds relevant information to the specialized literature and for the decision-making of managers, professionals, and government working in this area of study.

The journey of Spanish subsidiaries as international springboards in Latin America

This study examines the transformation of ordinary foreign multinational subsidiaries into springboard subsidiaries. Using a case study approach, the research examines three Spanish subsidiaries of European multinationals that, targeting the Latin American market, have transitioned into springboard subsidiaries. The findings reveal that this evolution is driven by several factors: favourable economic conditions in the target region; location-specific advantages such as the ability to reduce the psychic distance and effectively transfer knowledge; and micro-political negotiations processes as a result of the subsidiary’s strong initiative, peculiarities of the multinational structure and subsidiary’s unique capabilities.

Russia’s foreign economic relations with major Latin American partners in the context of anti-Russian sanctions

The article examines key vectors of the development of Russia’s foreign economic relations with its largest trading partners in Latin America in the context of anti-Russian sanctions. The author analyzes peculiarities of Russia’s foreign trade and investment cooperation with Brazil, Ecuador, Argentina, Mexico and Chile. Factors hindering the development of this cooperation are economic instability in the world, anti-Russian sanctions, weak development of logistics networks, lack of free trade agreements, the presence of high custom duties on Russian products in the Latin American market, high competition on part of the United States and China, insufficient interest of Russian business in economic cooperation with the countries of the region over the past decades. It is shown that the largest increase in Russia’s trade turnover with the countries under consideration was recorded with Mexico, an increase in Russian exports was observed in Argentina, and imports - from Mexico. Chile demonstrated the worst indicators in the sphere of foreign trade relations among the countries under consideration. It is concluded that Russia’s largest Latin American partners have serious prospects for expanding their presence on the Russian market in the face of anti-Russian sanctions. Two key factors can be considered favorable for further development of Russia - Latin America trade cooperation. The first one is the orientation of the foreign policy of many countries in the region to other economic partners in order to minimize dependence on the United States. The second one is that Russia is shifting its vectors of economic cooperation from unfriendly countries to other countries, including Latin American states. It is concluded that investment cooperation between the countries has certain prospects for development, especially in the field of oil and gas exploration, energy and railway construction.

Franchising in Argentina: economy saving after the crisis

The Latin American market is currently of great interest for the development of international business and international franchising in particular, both from foreign investors and among national companies developing their international business. Argentina has an ambiguous position in the global business arena. Being the third economy in the region, it occupies a very scattered economic position on the world stage, which brings its own nuances to the development of the economy. The article considers the period of time mainly after 2014-2015, when the country experienced a serious economic recession. A modern view of the development of franchising in the country is presented and the prospects for its development are outlined. The article focuses on the analysis of the development of franchising in Argentina from an economic point of view, provides statistical and graphical data on the state of development of this type of business in the country. In addition, the key points associated with the economic crisis of the 2000s and the Covid pandemic, which may hinder the development of franchising in the Argentina’s market, are identified, as well as the key trends in the development of franchising in Argentina in the coming years.

Latin America and the European Union: Conceptual Approaches and Practice of Economic Cooperation

The article deals with North - South cooperation between the European Union (EU) and Latin America and the Caribbean (LAC) with an emphasis on bilateral trade. Over the past decades, cooperation with the EU has been perceived in LAC as a counterweight to the US dominance and one of the priorities of external economic relations. The article presents a retrospective of theoretical approaches of the non-Western Latin American school of UN Economic Commission for Latin America and the Caribbean (ECLAC, CEPAL in Spanish) to the economic cooperation with the EU. A feature of the article is the study of trade interaction between the LCA and the EU countries. When analyzing the dynamics of trade during the first two decades of the 21st century the author of the article comes to the conclusion that the trade exchange between the EU and the LCA is uneven. There are many LAC countries that continue to export low-value-added products to the EU. Thus, the dichotomy between two models of commercial specialization of LAC has exacerbated. On one hand, there is a model of South American countries focused on raw materials (MERCOSUR, Andean Community), and, on the other hand, there is a model that includes the export of manufactured products and participation in industrial production chains (Mexico, Central America). The article concludes that MERCOSUR will probably face a number of trade challenges related to its model of economic globalization, particularly with regard to its export specialization in commodities and food. The relevance of the study is due to the fact that in the context of exacerbation of geopolitical contradictions and a changing world order, it is important to analyze the Latin American approach to economic cooperation with the EU countries, among which, in turn, there is a growing understanding that still free niches in the Latin American market can be occupied by China or other partners not belonging to the collective West.

Bouncing between screens: social TV and Brazilian NBA audience

PurposeSports leagues have stood out in the entertainment industry due to their great economic value and cultural impact. This is the case of the American sports leagues, with emphasis on the National Basketball Association (NBA), whose largest Latin American market lies on Brazil. The aforementioned league’s audience is constantly growing, a fact that can be partially explained by the encouragement provided for its viewers to interact through social media, in a phenomenon called social TV. Accordingly, the aim of the present study is to investigate how social TV works as a means for Brazilian fans to coproduce their NBA broadcasting enjoyment through social media interactions.Design/methodology/approachThe authors conducted a netnography on the community of fans engaged in Twitter hashtag #NBAnaESPN, which was released by ESPN to promote audience integration during NBA games' broadcasting.FindingsA theorization about the role played by social TV in the way fan culture articulates through social media to enjoy broadcasting media products was herein presented. The findings of this study have evidenced three categories concerning the role played by television broadcasting, social media and the fandom in NBA consumption by Brazilian fans. Based on these findings, the authors got to the conclusion that social TV establishes a mediatized environment where fan culture can be articulated through social media to enable interactions about television broadcasting.Research limitations/implicationsThe study was limited to members of the Brazilian NBA audience who engage in the official social media of the league’s broadcasting.Originality/valueThe study heads toward a theoretical generalization based on the research results.

Technological development and patent analysis: the case of biopharmacy in the world and in Latin America

ABSTRACT Pharmaceuticals, biotechnology, and technological advances are currently a new paradigm with ample potential to provide therapeutic solutions to multiple diseases. The purpose of this study was to survey granted patents related to biopharmaceutical products. The most important results show that most of these inventions are concentrated in the United States, and European and Asian countries, and that US companies are the clear leaders in this area of knowledge, reaffirming its position as one of the most important technological markets in the world. Additionally, the technological classes, established according to search criteria, that have shown the most progress over time has to do with medicinal preparations containing antigens or antibodies, as well as those associated with peptides. Finally, the role of the Latin American market is not relevant for the production of this group of technologies; consequently, it is important to define strategies for their inclusion in countries in the region and to promote cooperation in terms of research and development. This course of action will provide the region with the possibility of increasing technological capabilities that will allow it to innovate within the sector.

Influence of COVID-19 on Environmental Awareness, Sustainable Consumption, and Social Responsibility in Latin American Countries

This article aims to investigate the effect that COVID-19 has on environmental awareness, sustainable consumption, and consumer social responsibility. Although some recent research focused on this phenomenon, there are still no studies applied to Latin American consumers. In this study, the data comes from 1624 responses from Latin American consumers who also represent different generations, equitably distributed in 400 from Chile (24.6%), 421 from Colombia (25.9%), 401 from Mexico (24.7%), and 402 from Peru (24.8%). Data were collected through self-administered questionnaires using an online survey via Google Forms through email and social networks (Facebook, LinkedIn, Instagram, and WhatsApp) from July 2021 to September 2021. This study uses a quantitative methodology using a structural equations model (SEM) to examine the cause–effect relationships of the explanatory model of this study. The main findings indicate that consumers from these countries declare that their behaviors have become ecologically and socially responsible. In addition, these respondents indicated that they had increased their interest in sustainable consumption and in acquiring environmentally friendly products to reduce waste and negative impacts on the environment derived from consumption. Based on the results, this research provides useful information to change or re-direct the communication and strategies of governments, brands, organizations, and society to promote actions and behaviors that help reduce the negative impact on the environment derived from consumption in a Latin American market. Managerial implications are provided.

Information disclosure quality and firm value: empirical evidence for an emerging integrated market

PropósitoEl propósito es estimar el efecto de la calidad en la revelación de información sobre el valor de la firma para empresas que hacen parte del mercado integrado Latinoamericano (MILA) durante el periodo 2011–2017.Diseño/metodología/aproximaciónEl estudio utiliza un modelo de ecuaciones estructurales (SEM), donde la variable latente “Calidad de la información” es medida usando cinco variables de análisis textual como indicadores. La muestra final está conpuesta de 1,412 observaciones que representan 198 empresas para las cuales se pudo recolectar los reportes anuales y la información financiera requeridaHallazgosNosotros encontramos una relación positiva y estadísticamente significativa entre la variable “Calidad de la información” y valor de la firma. El efecto indirecto del lenguaje en el valor de la firma es igualmente observado. La similaridad en el texto, el tono negativo, la legibilidad y el largo del texto en la revelación corporativa están relacionados de manera negativa con el valor de la firma mientras que el tono positivo está relacionado de manera positiva. En el análisis exploratorio, nosotros encontramos un efecto estadísticamente significativo entre las medidas de texto y la calidad de la revelación.OriginalidadLa investigación es original y única en cuanto aproxima la relación entre calidad de la revelación y desempeño de la firma usando un modelo de ecuaciones estructurales para las firmas participantes del mercado integrado Latinoamericano (MILA).

Opportunities and Challenges Faced by Chinese Enterprises in Exploiting Latin American Market

Opportunities and Challenges Faced by Chinese Enterprises in Exploiting Latin American Market

Russia on the Latin American market of military equipment

Military-technical cooperation is an important part of bilateral relations between Russia and the countries of Latin Caribbean America. In some cases, it can serve as a start, a precedent for the development of contacts in other areas as well. This promising area of interaction with the countries of the region has not been studied sufficiently in Russian Latin American studies. In the context of accelerating technological progress, the emergence and promotion of new types of military and dualuse products, and regular changes in the political situation in the region, the Center for Analytical Studies of the Institute of Latin America of the Russian Academy of Sciences (ILA RAS) held a "round table" on the topic "Preconditions and factors for strengthening the positions of Russian exporters in the Latin American market of military equipment and security means”, which was attended by employees of the ILA RAS, the Department of Ibero-American Studies of the Peoples' Friendship University of Russia (RUDN University) and other experts. Discussing of the general situation on the arms market in the region and in the world, the peculiarities of equipping the armed forces of the LCA countries, the prospects for the military-technical cooperation of the states of the region with Russia and its main competitors was intended to initiate a systematic study of this topic. We present the readers an overview of the reports of the round table participants.

The Brazilian way of international franchising development

The Latin American market has become one of the few "new" directions in the geography of international franchising development. Much of Latin American countries only in recent years have begun to realize the benefits of franchising for the economic growth and job creation, and some governments are offering financial support to brands which wish to franchise with them. Brazil among the entire Latin American region is undoubtedly the leading market in many areas, including the development of franchising. The article focuses on the analysis of the franchising development in Brazil from an economic point of view, provides statistical and graphical data on the state of this type of business in the country. In addition, cornerstones are identified that may hinder the development of the internationalization of the activities of foreign franchise networks in the Brazilian market.