ty and welcoming of foreign investment was not always the case in Peru. Indeed, General Motor’s past experiences in the country were not positive or successful. The former Peruvian government, under the Allende regime, at one point decided to make foreign corporations in Peru become subject to state control by grouping them together as part of his Area of Social Property. Allende did not take over British, Brazilian or Swedish interests, but it did so with American companies in Peru, like General Motors, “The American-owned enterprises were larger and more controversial. After the purchase of the Bethlehem Steel subsidiary, the government intervened the food processing plant belonging to the Ralston Purina Company, the Ford and General Motors assembly plants, and, a subsidiary of ITT, the Chilean Telephone Company. Subsidiaries of other American companies also became part of the Area of Social Property,” (Sigmund, 1980: 164).
Yet, the recent renovation of Peru’s economy suggests that General Motors has an excellent opportunity to open manufacturing plants in Peru. The following actions taken by President Fujimori are all conducive to a healthy Peruvian economy and reinforce other policies to liberalize trade, which shall be discussed:
Fujimori eliminated longstanding government price controls and subsidies. Prices of fuels, utilities, and government-produced goods and services were increased by up to 3,000 percent to restore the financial viability of public sector enterprises.
Tight monetary policies have been pursued to restrain inflation, and the Ce
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