European investment in Latin America: An overview

The macroeconomic policies implemented during the second half of the 1980s and early 1990s to promote economic stabilization and foster changes in the region’s production patterns have, in combination with the external debt renegotiation process, helped create favourable conditions for foreign investment from all sources -including Europe- in a growing number of Latin American countries. However, although the liberalization and deregulation initiatives that have accompanied these policies have opened up opportunities for foreign investment, European firms -whether already established in the region or planning to enter it- will have to make some adjustments if they are to make a genuine contribution to the enhancement of Latin America’s international competitiveness.