Latin America and its Challenges for Foreign Investors
In Multinationals in Latin America Robert Grosse establishes for himself the task of indicating why business operations in Latin America must not be approached from either an Americanized or Europeanized base of assumptions. He vehemently argues against the sloppy use of theoretical models which have not been customized to the specific problems and challenges of Latin America's business practices. Gross indicates that his book is meant as a survey of the activities of multinational enterprises (MNEs). However, he stipulates that in his research he is laboring to present a more comprehensive analysis of the various types of MNEs, whether industrially based in the United States or United Kingdom, locally based and privately held by Latin American firms or state-owned and operated. His method of analysis will be microeconomic identified as focusing on the "decision-making" process operative within these firms (1). Grosse will evaluate the public policy which is employed to direct the activities of these firms and to regulate competition among them. In his Introduction, Grosse asserts that his task will be directed by descriptive needs rather than a more forcibly evaluative tone. He suggests that his goal is neither to condemn MNEs for their failure to solve Latin America's economic crisis nor to celebrate "the virtues of such firms" (1).
Grosse indicates that his observations will fall within the conceptual framework which envisions MNEs functioning to increase their own value and by choosing to deal with regulators and competitors in a manner which will leverage for themselves the best position possible within each country's prevailing conditions. Specifically, Grosse outlines how MNEs follow a strategy of internalization whereby in assessing their own strengths they seek to maximize their potential gains by a crafty manipulation of such environmental factors as compe...