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Latin America Rising
How Latin American companies become global leaders
Latin America is a large market with high growth potential that is increasingly important to the world economy. The region’s GDP of $7.4 trillion already accounts for 8.5 percent of global GDP, and by 2017 its real GDP growth rate is expected to surpass that of all other regions except the Middle East and North Africa. But what does it take for Latin American businesses to transform from local companies (“Local Latinas”) to global powerhouses (“Global Latinas”)?
Our latest research on companies in the Latin Trade Top 500 sought to answer that question, and we’ve identified five factors that are key indicators of whether a Latin American company can compete effectively and sustain performance at the global level:
- Availability and retention of top executives qualified to lead international expansion and operations
- Access to capital markets and financing
- Position of market leadership at home
- Ability to execute international acquisitions and joint ventures
- Use of leading corporate governance practices
Other findings include:
- Latin American companies comprise 71% of total revenue generated in the region, versus 29% for multinationals
- Over 50% of Global Latinas are concentrated in the Oil & Gas and Food industries, whereas over 50% of Local Latinas are concentrated in the Retail Trade and Information industries
- Local Latinas are listed on an average of 1.25 stock exchanges, whereas Global Latinas are listed on an average of 2.06
In addition to looking at the Latin American region as a whole, the report provides country-specific analysis into the unique challenges and opportunities companies based in a particular country face when trying to conduct business abroad.
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