Global Business in Latin America Research Paper

Global Business in Latin America - Research Paper ExampleRegardless of significant differences in Latin America, most of the LACs traditionally displayed huge inequalities in income distribution. In fact, today, the inequity among families, people or members of different social classes is not only present in countries such as Colombia and Brazil, but also in Mexico, Argentina, and Chile. Thus, the concept of inequity in income distribution is not new but has been in existence for sort of a long period of time more so among the LACs.Due to the global crisis of the 1930s as well as the reduction of transnational trade, America was propellight-emitting diode towards the world of an internal dynamic based on import as well as firm control of foreign exchange. After the WW II, large countries focused on spurring industrialization thus leading to a high level of income concentration. Nonetheless, due to a large supply of labor and the structural heterogeneity between wage and goods in I ndustrial and Agricultural sectors, there was an ultimate distribution of this income. Therefore, these were the factors which affected the income of individuals in the LACs. However, the introduction of the restraint affected the economic growth. This is because BOP lead to the rise in interest rates as well as exchange rates leading to inflation, thus consequently exerting a depressing rig on real wages in LACs. The BOP constraint that recurrently complemented the process of industrialization in LACs was thus the key economic factor that led to the high surplus of labor and structural heterogeneity.