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Rationale and strategies of Latin American companies entering, maintaining or leaving US markets

Arturo Z. Vasquez‐Parraga (Associate Professor of Marketing and International Business at the College of Business Administration, The University of Texas‐Pan American, Edinburg, Texas, USA)
Reto Felix (Associate Professor of Marketing in the Department of Business Administration at the Universidad de Monterrey, San Pedro Garza Garcia, Nuevo León, Mexico)
Aberdeen Leila Borders (Assistant Professor of Marketing, at the College of Business Administration, University of New Orleans, New Orleans, Louisiana, USA)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 1 October 2004

Abstract

Foreign direct investment by Latin American companies in the USA is growing and significant. Yet, the characteristics of and trends in these investments, and the strategies used by these companies to either enter or exit the USA as well as to maintain their presence are little understood. This paper explores and illustrates the entry, maintenance, and exit strategies exemplary companies from Latin America use when they become involved in US markets. A sample of Mexican companies that concentrate in manufacturing industrial goods and prefer partnerships as the entry mode to US markets is used. In addition, this paper describes the patterns of direct investment, asset ownership, gross product, and intra‐firm B‐to‐B trade of Latin American companies in the USA.

Keywords

Citation

Vasquez‐Parraga, A.Z., Felix, R. and Leila Borders, A. (2004), "Rationale and strategies of Latin American companies entering, maintaining or leaving US markets", Journal of Business & Industrial Marketing, Vol. 19 No. 6, pp. 359-371. https://doi.org/10.1108/08858620410556309

Publisher

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Emerald Group Publishing Limited

Copyright © 2004, Emerald Group Publishing Limited