Central American multinationals target regional growth

Subject

Central American multinationals.

Significance

Civil war, violence, political instability and corruption have meant that much of Central America has been relatively marginal to wider regional economic activity. Nonetheless, a number of large Central American firms have been able to secure a foothold outside their home countries.

Impacts

• Central American multinational firms establishing a presence beyond the Americas will be extremely unusual.
• Growing Asian trade with Central American countries would create significant opportunities for major local firms.
• Local multinationals will create barriers to international firms entering the sectors in which they are strong.