Welcome to: Business in Latin America

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Business in
Latin America
IB 372
Fall 1999
Professor Jorge Villegas
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Why are you here?

• Please answer the following questions
• Name/place of birth
• Major
• Countries of expertise/interest
• Languages you master/study
• Products/areas of expertise/interest
• Past studies/work experience
• Why are you here?

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My turn

• Jorge Villegas López, born and raised in
  Monterrey, MX.
• PhD student Dept. of Advertising
• NAFTA person Mx., US, Can.
• Spanish, English, French.
• Market research, advertising in L.A., newspapers,
  the effect of interactivity on the communication
  process of health promotion.
• ITESM, VFS, UT
• Vitro, Mercadotenia Estrategica, ITESM
• I never liked IB classes, so instead of
  complaining about it

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The Syllabus
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A word on words

• Terminology is very important (Daskal 1990)
• Latin American Individuals who were born and
  reside in Latin American countries.
• However, it is better to address them as
  Brazilian, Cubans, or Colombians, etc.
• Latino or Hispanic Individuals who were born or
  have origins in a LA country but reside in the
  US.
• North Americans Individuals who were born and
  reside in the US. (Also Anglos is a commonly used
  term)

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Why Latin America?

• Trade partner
• Investment opportunities
• Direct
• Stocks and debt markets
• History
• Politics
• Hispanic population

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Mexico US manufacturing plantor competitor

• Made in Mexico
• IBMs Think pads.
• Whirpools Washing and drying machines
• VWs Jettas and Beetles
• But also some companies compete with their US
  counterparts
• Cement Cemex
• Steel staircases IMSA
• Buses and trucks DINA

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Politics

• Governments in Latin America are all over the
  gamut of political possibilities
• Communism
• Capitalism
• In the 90s, the political turmoil in LA
  countries is almost overbut..
• Recent dictatorships
• Guerrilla wars
• Economic tribulation
• Please read carefully pp. 6-9.

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A famous quote

• Poor Mexico, so far from God,
• so close to the United States
• Porfirio Diaz

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Hispanics in the US

• The new large minority
• Economic and demographic force
• Increased interest in Latin America

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Some data about the Hispanic Market

• 30 million strong. By 2010, there will be an
  estimated 41.5 million.
• More than half are of Mexican origin.
• Salsas picantes are consumed more frequently than
  ketchup in the US.
• Purchasing power 965 billion in 2010.

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800 Minutes Break
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Why study the past?

• Key to the present and probably the future.
• Why are the political, economical and societal
  systems in each country different
• Understand why change is so difficult for some
  countries and individuals.

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How was LA before 1492

• Three major civilizations
• Maya
• Zapoteca gt Maya gt Tolteca
• Aztec
• Warriors that assimilated other civilizations
• Inca
• Very different from the Mayas and Aztecs.

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Spain before 1492

• Finished the invasion of the moors.
• Getting ready to begin a new golden epoch.
• Why get in small, smelly boats in dangerous
  missions?
• To serve God and the Catholic King.
• And of course to get rich.

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The cliffhanger of the week

• The end of powerful empires was destroyed
  practically by a handful of conquistadores.