Global Management Forum Speaker Series
2011 Latin American Business Environment Report, Dr. Terry McCoy, University of Florida
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Monday, February 7th marked a day when students and faculty from Purdue University's Krannert School of Management could learn how the evolving economic situation in Latin America is beginning to unfold and what this means for America's future and those seeking to do business in this emerging market space. The Center for International Business Education and Research (CIBER) welcomed Mr. Terry L. McCoy, Director of the Latin American Business Environment Program at the University of Florida, to shed some light on a region that has typically been plagued by negative press, high inflation, and a dreary debt picture. The audience was captivated by his comparison of the New versus Old Latin America, and many of the international students from the region were compelled to seek further understanding on how their education and skill set could help further the transition of Latin America to become a dominant player in the global scene for new business opportunities.
As of 2010, Latin America has a population of more than a half billion residents and a combined GDP of 5.16 trillion U.S. dollars. Economic growth exceeded 5.7% in 2010, and is forecasted to be about 1% lower for 2011. The countries of Latin America have experienced a more improved business environment as overall debt has declined, the cost of capital has decreased, and inflation has slowed. According to McCoy, 'This is the operating environment that businesses are able to capitalize on in the new Latin America." However, he also stressed the many caveats to direct foreign investment and how the current political and social environments are key components to the ultimate growth that Latin America will experience as these countries compete with China, India and the United States. McCoy believes, "Socially, they need to control crime and politically, they need to provide transparency to the government and presidency. Without fixing these environments, many will not risk investing in Latin America."
The discussion concluded by McCoy speaking directly to students about the future job opportunities that will be available to them in the coming years. He stressed the importance of being fluent in Spanish, Portuguese, and English, in addition to recommending students to have a working knowledge of the Latin American culture. "You have to know the culture, relate to others on a personal level, foster relationships with clients, and most importantly, you have to build trust. Business is built on trust in Latin America and your success will depend on it," according to McCoy. This was great advice for students looking to go abroad and experience business outside the United States, specifically in Latin America. As business becomes more global and job opportunities become increasingly competitive within the United States, McCoy taught the students a valuable lesson for their future: "Understand the basic principles of business, but cultural and economic awareness will be the driving force for succeeding in a business environment outside the United States."
Written by Jenny Tvedt, MBA 2011
About the Global Management Forum
The Global Management Forum (GMF) speaker series brings seasoned international executives, managers, and thought-leaders to Purdue University to share their experiences and insights with Krannert faculty and students, and to discuss the challenges facing today's global economy.