International Trading Companies for Developing Countries-Latin America

Abstract

The paper discusses the suitability of applying Brazilian and East Asian models of international trading companies (ITCs) to the Latin American environment. The adjustment process in developing countries is presently moving from the import-compression to the export-expansion phase requires a fresh look at the LDCs’ international business activities. As for Latin America, one of the current solutions to improve the balance of payment may therefore constitute improved productivity in its foreign trade account, through genuine export promotion and import substitution. Searching the alternatives of improved export/import performanc, we present a case for ITCs in Latin America through analysis and comparison of ITCs in Brazil and East Asia.