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[edit] Exchange Traded Funds[edit] Overview
[edit] IndustrialLatin America is home to some of the largest mining companies in the world. The region is rich in silver, copper, iron ore, and to a lesser extent, zinc and lead. Rising commodity prices, most notably in silver, have created a lot of wealth in these countries and the mining companies. In addition, steel production is in high demand with the growing infrastructure of the developing nations, in particular Brazil.
[edit] AgricultureLatin America is the world's leading producer of coffee, orange juice, sugar, and soybeans. Brazil is the top producer in every one of those categories. Latin America is also a major producer of corn and fruit, such as bananas. Argentina is one of the more agriculturally driven countries in Latin America with about 55% of exports coming from agriculture.[5]
[edit] EnergyMexico and Venezuela are both top ten world oil producers and new discoveries in Brazil could launch it in the top ten as well. Venezuela is the most dependent on its oil production - oil accounts for about a third of GDP and over 80% of exports.[8] Brazil, on the other hand, gets over 90% of its energy from hydroelectric power, and its large soybean production also leads to a large production of ethanol. Argentina gets about 80% of its electricity production from natural gas and hydroelectric power.[9] Colombia has the largest coal reserves in Latin America.[10]
Major Companies
[edit] BankingAs the economies in the these developing countries start to gain wealth and expand, the banks receive more and more demand. Building the infrastructure increases the number of loans demanded and the growing middle classes are putting more money into the banks. This is best exemplified in Brazil as the country has the four largest banks in Latin America due to its large and rapidly expanding economy.
[edit] TelecommunicationsLatin America has a mobile phone penetration of 66% as of early 2008 with about 375 million people owning phones in Latin America and the Caribbean.[13] Penetration in the rest of the world averages around 46%. Latin America is also ahead of the curve in 3G services. Brazil, Chile, Argentina, and Uruguay all have 3G networks offered by their telecom companies.[14] Brazil is the 5th largest mobile phone market in the world.[15]
[edit] TransportationThe largest transportation companies in Latin America are primarily made up of regional airlines. Much of the fleets consist of mid distance planes such as Boeing 737's and short distance planes like prop planes. Countries like Panama and El Salvador serve as major hubs between the US and South America and, as a result, are home to some of the larger regional airlines.
[edit] Political EnvironmentAlmost every country in Latin America has a democratic form of government at this point, but that does not mean every country has political stability or is without corruption. Venezuela is run by a socialist party which gets about half its revenues from Venezuela's oil sales. Venezuela is one of the most corrupt countries in Latin America and is widely considered politically unstable. Other countries like Mexico and Brazil have sub par corruption levels, but the general political environments are relatively stable. Political stability helps create confidence in the country in the eyes of foreign investors - Brazil received $37B in foreign direct investment in 2007. [edit] Corruption
[edit] References
Companies in the Investing in Latin America Industry (2)Categories: Geography | Topic | Industry |
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