Skip to main content

Multinationals from Latin America: An Analysis of Their Strategies of Expanding into Europe

  • Chapter
  • First Online:
Emerging Market Multinationals and Europe
  • 719 Accesses

Abstract

Numerous Latin American multinationals have invested in Europe during recent years. This paper focusses on the expansion strategies of Latin American multinationals in Europe. It deals with Latin American multinationals from three countries and embeds the analysis of their expansion processes into the broader context of the national development trajectories. In particular, the three most important home countries in terms of outward foreign direct investment, Brazil, Mexico and Chile, are analyzed. It is concluded that the strategies of Latin American companies from these countries vary substantially and the overall dynamics of expansion are closely related to the development processes of the respective countries. Moreover, the chapter discusses potential strategies for national and regional authorities interested in attracting Latin American multinationals. This has important implications for regional European location and development strategies (Substantial parts of this chapter are based on Jäger and Bauer (2017): Transnational Investment Strategies of Latin American Multinationals: Implications and opportunities for Europe/Austria/Vienna published in Wirtschaft & Management.).

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Aglietta M (2000 [1979]) A theory of capitalist regulation: the US experience. Verso, London

    Google Scholar 

  • Banco Central de Chile (2018) Base de Datos Estadísticos. http://si3.bcentral.cl/Siete/secure/cuadros/home.aspx. Accessed 25 May 2018

  • Banco Central do Brasil (2018) Economic indicators. http://www.bcb.gov.br/pec/Indeco/Ingl/indecoi.asp. Accessed 1 August 2018

  • Becker J, Jäger J, Leubolt B, Weißenbacher R (2010) Peripheral financialization and vulnerability to crisis: a regulationist perspective. Competition Change 14:225–247

    Article  Google Scholar 

  • Bin J (2016) The politics of financialization in Brazil. World Rev Polit Econ 7:106–126

    Google Scholar 

  • Cardoso FH, Faletto E (1979 [1971]) Dependency and development in Latin America. University of California Press, Berkeley

    Book  Google Scholar 

  • Casanova L (2009) Global Latinas: Latin America’s emerging multinationals. INSEAD Business Press series, Palgrave Macmillan, London

    Book  Google Scholar 

  • Clifton J, Díaz Fuentes D, Revuelta J (2014) How policies shape foreign direct investment from Latin America to the European Union. In: Nölke A (ed) Multinational corporations from emerging markets: state capitalism 3.0. Palgrave Macmillan, London, pp 155–168

    Chapter  Google Scholar 

  • Daniels JD, Krug JA, Treviño LJ (2007) Foreign direct investment from Latin America and the Caribbean. Transl Corp 16(1):27–53

    Google Scholar 

  • Fazio H (2000) La Transnacionalización de la Economía Chilena: Mapa de la Extreme Riqueza al año 2000. LOM Ediciones, Santiago de Chile

    Google Scholar 

  • Fazio H (2014) El mundo del 1%, 0.1% y 0.01%. Editorial Usach, Santiago de Chile

    Google Scholar 

  • FDC (2014) FDC ranking of Brazilian Multinationals 2014. The strength of the Brazil brand at creating international value. FDC, São Paulo

    Google Scholar 

  • Hochstetler K, Montero AP (2013) The renewed developmental state: the National Development Bank and the Brazil Model. J Dev Stud 49(11):1484–1499. https://doi.org/10.1080/00220388.2013.807503

    Article  Google Scholar 

  • Jäger J (2012) Regionale und nationale Entwicklungsmodelle in Lateinamerika und ihre Beziehung zur Weltwirtschaft. In: Lesay I, Leubolt B (eds) Lateinamerika nach der Krise: Entwicklungsmodelle und Verteilungsfragen. Lit-Verlag, Berlin, pp 19–34

    Google Scholar 

  • Jäger J, Bauer B (2017) Transnational investment strategies of Latin American multinationals: implications and opportunities for Europe/Austria/Vienna. Wirtschaft und Management 24:45–62

    Google Scholar 

  • Jäger J, Leubolt B (2014) Rohstoffe und Entwicklungsstrategien in Lateinamerika. In: Nölke A, May C, Claar S (eds) Die großen Schwellenländer: Ursachen und Folgen ihres Aufstiegs in der Weltwirtschaft. Springer, Wiesbaden, pp 175–792

    Chapter  Google Scholar 

  • Kandell J (2013) How multilatinas are taking over the world institutional investor 3/2013

    Google Scholar 

  • Masiero G, Ogasavara MH, Caseiro L, Junior SF (2014) Financing the expansion of Brazilian multinationals into Europe: the role of the Brazilian Development Bank (BNDES). In: Nölke A (ed) Multinational corporations from emerging markets: state Capitalism 3.0. Palgrave Macmillan, London, pp 130–152

    Chapter  Google Scholar 

  • Mayol A, Ahumada JM (2015) Economía política del fracaso: La falsa modernización del modelo neoliberal. In: Colección Ensayo. El Desconcierto, Santiago de Chile

    Google Scholar 

  • Mexico Business Blog (2016) Mexican investment abroad growing under the radar. mexican-investment-abroad-growing-under-the-radar. Accessed 29 July 2016

    Google Scholar 

  • Nölke A (2014) Introduction: toward state capitalism 3.0. In: Nölke A (ed) Multinational corporations from emerging markets: state capitalism 3.0. Palgrave Macmillan, London, pp 1–14

    Chapter  Google Scholar 

  • OECD (2018) FDI flows (indicator). doi: https://doi.org/10.1787/99f6e393-en. Accessed 19 November 2018

  • Olaya J, Castro J, Indira J (2012) Internationalization patterns of Multilatinas/Modelos De Internacionalización De Las Multilatinas. Ad-Minister 21:33–54

    Google Scholar 

  • ORF (2017) Wien als Steueroase für Brasilien. https://orf.at/v2/stories/2417070/2417072/. Accessed 28 July 2018

  • Perea JR, Stephenson M (2017) Outward FDI from developing countries. In: World Bank (ed) Global investment competitiveness report 2017/2018. World Bank, Washington, DC, pp 101–134

    Google Scholar 

  • Petras J, Veltmeyer H (2007) Multinationals on trial. Foreign investment matters. Ashgate, Farnham

    Google Scholar 

  • Salgado J, Ortega J, Pimmer S (2012) 30 Jahre Neoliberalismus in Mexiko. In: Lesay I, Leubolt B (eds) Lateinamerika nach der Krise: Entwicklungsmodelle und Verteilungsfragen. Lit-Verlag, Berlin, pp 131–154

    Google Scholar 

  • Santiso J (2008) La emergencia de las multilatinas. Revista de la CEPAL 2008:7–30. https://doi.org/10.18356/1b512183-es

    Article  Google Scholar 

  • Secretaria de Economía (2013) Plan Nacional de Desarollo 2013-2018. print version. Programa de Desarrollo Innovador, Mexico

    Google Scholar 

  • UNCTAD (2014) World investment report 2014. UNCTAD, Geneva

    Google Scholar 

  • UNCTAD (2018) World investment report 2018. Country fact sheets. https://unctad.org/en/Pages/DIAE/World%20Investment%20Report/Country-Fact-Sheets.aspx

  • Vernengo M (2008) The political economy of monetary institutions in Brazil: the limits of the inflation-targeting strategy, 1999-2005. Rev Polit Econ 20:95–110. https://doi.org/10.1080/09538250701661863

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Johannes Jäger .

Editor information

Editors and Affiliations

Appendix: List of Interviews

Appendix: List of Interviews

Interviews Brazil, September—November 2015

Institution

 

BNDES

Brazilian Development Bank

InterGest

Brazilian Consultant

ATS Brasil

Brazilian Consultant

IWD

Brazilian Consultant

Runa Consultoria

Brazilian Consultant

Austrian Business Agency in São Paulo

Advantage Austria, SP, Brazil

Opux

Potential European Investor

Interviews in Chile (21–25 March 2016)

Institution

 

SOFOFA (Chilean Chamber of Commerce)

Expert for the foreign expansion of Chilean firms

Quinienco (Holding Luksic group)

Largest economic group in Chile; one of the three most important investors in Europe

aInterview conducted in May 2015

Institution

 

Arauco (Largest wood processing firm in Chile)

One of the three most important Chilean investors in Europe

Chilean Ministry of Foreign Affairs

Supporter of the foreign expansion of Chilean corporations and investors

CENDA, research institute

Expert in the foreign expansion of Chilean firms

Holding Sigdo Koppers (Industrial services)

One of the three most important Chilean investors in Europe

Comité de Inversiones Extranjerasa

Committee for attracting foreign direct investments to Chile

Interviews in Mexico (28 August to 9 September 2015)

Institution

 

Medium-sized enterprise in the food industry

Expert

Promexico

Director for Europe and Africa

Promexico

Executive director for internationalization projects

Director for internationalization projects

Vice Director for internationalization projects

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Jäger, J. (2019). Multinationals from Latin America: An Analysis of Their Strategies of Expanding into Europe. In: Breinbauer, A., Brennan, L., Jäger, J., Nachbagauer, A.G.M., Nölke, A. (eds) Emerging Market Multinationals and Europe. Springer, Cham. https://doi.org/10.1007/978-3-030-31291-6_14

Download citation

Publish with us

Policies and ethics