Business in South America Business Research Proposal

This situation influenced populists in Venezuela, Bolivia, and Ecuador, which diminished their power in the region. Chavez' constitutional reform proposition was rejected by referendum, showing that the citizens of Venezuela desire a market-based democracy. In such conditions, it is only a matter of time until this democracy will be installed in the region.

The GDP in South America is expected to continue its ascending direction, reaching a 4.3% growth rate this year (Latin Business Chronicle, 2008). Inflation is expected to remain relatively constant in the next period of time. In certain regions in South America inflation is expected to decrease.

Given the conditions mentioned above, it is clear that South America will develop into investors' favorite destinations. The most important advantages of the region consist in: political stability in most regions, economic stability, government policies, and economic growth.

However, investors should think very carefully how much they are willing to invest in South America.The most important challenges in the region consist in: currency fluctuations, language barriers, and distance, which can cause significantly increased costs. Also, the political environment continues to be a problem in certain regions of Regarding oil business prospects, the industry is expected to continue to be subjected to political pressure, given the national importance of this resource.

Reference List

Chile - a Liberal Market in Latin America (2008). Hong Kong Trade Development Council. Retrieved October 10, 2008 at http://emerging.hktdc.com/content.aspx?data=EmergingMkt_content_en&contentid=1033126&src=BNT_CentralSouthAme&w_sid=194&w_pid=1401&w_nid=13506&w_cid=1033126&w_idt=1900-01-01&w_oid=181&w_jid=.

Latin America 2008: Political Outlook (2008). Latin Business Chronicle. Retrieved October 10, 2008 at http://www.latinbusinesschronicle.com/app/article.aspx?id=1956.

Latin America 2008: Macro Outlook (2008). Latin Business Chronicle. Retrieved October 10, 2008 at http://www.latinbusinesschronicle.com/app/article.aspx?id=1961......