Since the days of European colonialization beginning with Christopher Columbus and the journeys of Hernando Cortes and Francisco Pizarro, foreigners have always had an affinity for the countries of the western hemisphere. It is still true today, although the days of conquest are long gone. This region is one of the world’s most valued markets and with many of its countries promoting foreign investment, this may be the best time to get in on the business development in Latin America. All sorts of international companies, and start-ups as well, are choosing to set up shop in Central and South America. Here are four of the best regions in which to do business.
Brazil
The host of the 2016 Summer Olympic Games, Brazil is the world’s fifth largest country in terms of population. It is the largest in Latin America and offers up a huge market to foreign businesses looking to expand into the region. The country is one of the world’s fastest growing economies and is now the world’s seventh largest in terms of nominal Gross Domestic Product. It will continue to grow and will be bolstered by the hosting of the Olympics and also the 2014 World Cup soccer tournament. It is expected that the number of millionaire households in Brazil will reach 1 million by 2020.
Panama
The economy of Panama has always been related to its strategic location and the Panama Canal. This is still true today, however, in terms of business development in Latin America, Panama is one of the region’s leaders. It established the Colon Free Trade Zone, which has become the largest free trade zone in the western hemisphere. Companies that do business in the free trade zone receive all sorts of benefits from the Panamanian government. Those incentives include corporate tax breaks, no income tax, and no real estate property taxes. Businesses looking to expand should give Panama a good, hard look.
Colombia
While it seems that Colombia does not make the nightly news reports as a world-wide business power, that may soon change. After recovering from a recession in 1999, Colombia’s economy has expanded rapidly and GDP is now the third-highest in South America. The country is rich in natural resources such as petroleum and coal and is the world’s leading source of emeralds. With a population of more than 47 million and technology expanding throughout the country, Colombia can become a major player in the region’s economy.
Argentina
It is one of the G-20 major economies of the world. Argentina has always been a major player in business development in Latin America with its rich natural resources and highly literate population. The country has the third-largest economy in the region and foreign investment in Argentina grew 27 percent in 2012. Manufacturing is the largest sector of the nation’s economy with most of that happening in the Buenos Aires area. Almost 60 percent of the households in the country have internet access, the highest in the region and that number will continue to grow.
