Rationale and strategies of Latin American companies entering, maintaining or leaving US markets

Abstract

Foreign direct investment by Latin American companies in the USA is growing and significant. Yet, the characteristics of and trends in these investments, and the strategies used by these companies to either enter or exit the USA as well as to maintain their presence are little understood. This paper explores and illustrates the entry, maintenance, and exit strategies exemplary companies from Latin America use when they become involved in US markets. A sample of Mexican companies that concentrate in manufacturing industrial goods and prefer partnerships as the entry mode to US markets is used. In addition, this paper describes the patterns of direct investment, asset ownership, gross product, and intra‐firm B‐to‐B trade of Latin American companies in the USA.

Citation

Vasquez‐Parraga, A.Z., Felix, R. and Leila Borders, A. (2004), "Rationale and strategies of Latin American companies entering, maintaining or leaving US markets", Journal of Business & Industrial Marketing, Vol. 19 No. 6, pp. 359-371. https://doi.org/10.1108/08858620410556309