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Harnessing the Business Potential of Latin America

Posted By Administration, Monday, April 2, 2018

When considering the emerging economies of the contemporary world, many businesspeople dont look beyond the rise of China and India as eastern powerhouses - centers of exporting opportunities as well as technological advances that if harnessed correctly can produce lucrative profits. Latin America, though, with Brazil and Argentina especially representing countries with huge economic potential, are by and large markets that are easier to tap for western investors, especially given the cultural similarities and relative lack of red tape compared with Chinas business environment. Here are some pointers for those looking to set up a business in Latin America.

Learn Spanish and/or Portuguese

Spoken across the whole landmass of southern and central America, these two languages form the backbone of the collective Latin American culture and will get any prospective businessperson far in terms of communicative success. Far easier than getting to grips with Hindi or Mandarin, Spanish (spoken in Argentina) and Portuguese (spoken in Brazil) can be learned in easy night classes in your home country before you touch down in Rio de Janeiro or Buenos Aires.

While English remains the international language of business, youll be surprised to learn that you may not get too far speaking solely English in Latin America. This is, in part, why the business potential of these countries has yet to be tapped. Moreover, as a businessperson, youll be aware that communication and mutual understanding and respect are crucial in building a trusting, cooperative relationship with people, so having a little of the local lingo under your belt will be highly valuable come the important handshakes.

Beware Of Local Culture

When investing your time, money and business efforts in another country, its best to have a basic understanding of the unique cultural challenges that might arise over your working relationship. For instance, there may be levels of political and economic corruption in Brazil and Argentina. Be wary of the areas of business in which you may have to accept losing a little money to factors such as corruption - it should be offset by the profits you make by harnessing these emerging titans of the Latin American economy.

On top of the business environment, there are also cultural aspects of being aware of. All of these idiosyncrasies can be learned through interaction with locals and deep research into each country you plan on working with. Itll avoid your becoming unstuck through in-experience, but youll also have some cultural touchstones from which to build business understanding and relationships for years to come.

Take Advantage of Regional Finance

They may not have the international clout as other major and emerging economies, but Latin America has its own distinct economy that runs quite self-sufficiently through the development of financial technologies and institutions large and small. Take Bonsai Finance, where small to large business and personal loans can be easily orchestrated online for those in need of capital to set up a business. Another example of an established brand is MercadoLibre, the eBay of Latin America thats just as successful and popular as its better-known counterpart.

Whether you take advantage of these services, or you use some from your home country instead, setting up a business in Latin America will involves cashflows and interaction with their homegrown financial institutions - and will almost certainly require setting up a Latin American bank account - so having an overview of the economic and business services available to you in Brazil or Argentina will stand you in good stead when it comes to managing your money when on the continent.

Know the Currencies Well

This is a crucial area of business set-up that new businesses getting a foothold in Latin America should consider wisely, perhaps consulting with financial and money market analysts in order to assess the vulnerability of new business to currency fluctuations. Famously, the Argentinian Peso took a dramatic turn towards hyperinflation in the mid-1980s and had since seen fluctuations as successive regimes have attempted to fix the exchange rate to the dollar to increase imports and exports.

The Brazilian Real, meanwhile, enjoys a relatively stable existence when compared to its Argentinian cousin. Nonetheless, it pays to get to grips with the historical shifts in the currencys value and the policy of governments. The fluctuations can be as profitable as they can be damaging; knowing the history of these changes can give you some power of decision-making you can use to avoid mishaps and enhance your profits when the currency is performing well.

Trail Blaze with Ambition

Latin America has had a steady arrival onto the global business. So little modern and agile western businesses have taken a foothold in the emerging, colossal economies of Argentina and Brazil - such investments are seen as risky or difficult, but the truth is they can be some of the most lucrative in the world.

As well as offering some the happiest and most spiritually resilient people on earth, Latin American countries also offer rich culture, fine wines and a fun, friendly and unforgettable atmosphere for international business. Furthermore, if you establish the right links, youll have friends in high places wholl be able to protect you from the worst of the fluctuations that occur on the continent, allowing you to continue being ambitious and headstrong with your business development in Brazil and Argentina, or beyond into Venezuela, cultured Chile, or the farming nations of the north.

Latin America has often been touted as a risky but potentially lucrative center of business hopes that too few business people have shown an interest in. With some of these pointers under your belt, why not head over to Buenos Aires or Rio de Janeiro - two of the most unashamedly glamorous cities on earth - to start establishing contacts and harnessing the business potential of this wonderful and diverse continent.

Regardless of where your next business venture takes you, approaching any situation with preparedness, wherewithal and research can ensure you can develop and expand your business in the most beneficial way. 

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