Multinational enterprises from Latin America: investment strategies and limits to growth and diversification

The expansion of multinational enterprises from Latin America over the previous 10 years is part of a global trend of increasing outward foreign direct investment (FDI) from developing countries. This paper proposes to analyse outward FDI in the region categorising the behaviour of the 50 largest multinational enterprises from the region and attempting a broad classification of their motivations, objectives and means for their international expansion (FDI strategies). The author argues that the prevalent strategies identified can point towards an explanation for the current downturn in FDI outflows from the region. The paper finally provides a connection between the FDI strategies and the efforts towards structural change of the economies of the region, highlighting the role of outward FDI in this process.