Report Highlights Differences in Latin American Business Climate

Latin America is one of the fastest growing regions in the world and, because of free trade agreements, provides a source of potential new buyers for U.S. goods and services. However, when entering a new market like Latin America, knowing the local culture and the business environment are two key elements that can help to ensure success, according to global trade credit insurer and accounts receivable management provider Euler Hermes ACI.

In a special report, "Critical Elements Intrinsic to Conducting Business in Latin America,” Euler Hermes ACI Senior Vice President – Director of International Development, Marketing & Strategy Arjan van de Wall discusses unique market details for business executives looking to expand into the Latin American market. "Latin America’s culture is very rich and differs quite a bit from the U.S. business culture,” he said. "The market has tremendous growth potential, but you need to do your research and use all of the resources available to you to ensure the successful expansion of sales to this region.”

The report focuses on several main points about the Latin American market, ranging from language and communication styles to political and economic risk. Topics covered include:

• Meeting strategies
• Business and interpersonal communications
• Differences in legal and collections systems
• Payment performance
• Export financing methods

One of the most beneficial pieces of advice within the report deals with having local contacts before expanding sales to the region. "The most prudent exporter will explore and evaluate new buyers in risky markets through a local resource, such as a trade credit insurer,” sad van de Wall. "Free trade agreements have brought many motivated buyers out in the open in Latin America, but it is imperative to know which are the best companies with which to do business.”  

Euler Hermes maintains a strong presence in Latin America, with local offices in Argentina, Brazil, and Mexico that can provide detailed information on potential buyers in those countries. This information is obtained in close proximity to the risk source, rather than from a central global location, and therefore provides expert business intelligence and client support services to exporters seeking to increase trade flows to the Latin American region.

"Exporters need to be both practical and assertive in exploring new markets, such as Latin America, van de Wall concluded. "The fear of the unknown can be daunting, but utilizing sound accounts receivable protection practices to allay that fear is a constructive and available solution.”

The full report is available upon request from the Euler Hermes ACI communications department. To obtain a copy, send an email to eulerhermes.usa@eulerhermes.com or call 410-753-0652.