The gray market thrives in Brazil, where the informal economy generates nearly 40 percent of the national income. Many companies don't pay their taxes and ignore regulations, thereby gaining an unfair advantage over their law-abiding counterparts while hurting the nation's productivity. Brazil's onerous bureaucracy is partly to blame: burdensome regulations, high taxes, and weak enforcement conspire to encourage evasion because the benefits outweigh the relatively small possibility and cost of being caught.

Though a little dated (1997), this article offers some good insight into the business opportunities emerging countries represent. Focused on Latin America (with some interesting associated facts and figures) some analysis is also somewhat generalizable, specifically looking at:
a) The "multidomestic player" that must move to a regional footprint and management model.
b) The multinational player that is starting to expand in the region.
c) The multinational player that is entering, or considering entering, the region.

Even as many Latin American countries continue to face tough times both economically and politically, Chile chugs along with a strong currency, falling unemployment and a stock market that is up nearly 50% since the beginning of the year. What is behind's Chile's success, and can this country of 15 million people sustain its already numerous advantages?

In Latin America, macroeconomic reform isn't enough: sustained growth can be achieved only by removing microeconomic barriers to productivity as well.

Editor's Note: a very interesting application of economic analysis that will be of interest to those interested in international business, country competitiveness, and/or economics.

Also check out "Don't Cry For Argentina" at:
http://www.stern.nyu.edu/Sternbusiness/spring_summer_2003/argentina.html

If ever the Broadway show tune "Don't Cry For Me, Argentina" had poignancy, now is the time. The fact is, a lot of people are crying over Argentina, including the country's bankers, government leaders and middle class, not to mention outside investors. Knowledge@Wharton looks at what went wrong with the Argentine economy and whether a recovery is on the horizon.

When Enrique V. Iglesias looks at the present state of Latin American nations, he sees a glass that is "forever half full and half empty." The president of the Inter-American Development Bank told an audience at the 2001 Global Business Forum that, despite progress in lowering inflation, increasing trade and introducing democratic governments, too many inefficiencies still remain in too many sectors of the economy.

Family-owned businesses are the backbone of the economies of Latin America and of most other emerging markets. But many such businesses are finding it hard to compete with the global scale, focused strategies, cutting-edge management practices, and deep pockets of multinational companies. The take-away: To survive and thrive, family-owned businesses need governance models that can prevent family squabbles from spilling over into the business while helping it to recruit management talent capable of negotiating a smooth succession of power across generations.

Charles Handy discusses the increasing segregation of the working world into large organizations and independent workers and the associated implications. Also discussed is America's optimistic spirit.

Editor's Note: See related article at:
http://www.mbadepot.com/redir.php?ID=1953&file=links

Article offers an overview of the issues involved with dollarization, especially in Latin America.