Market Entry Risks are those that should be assessed during the initial phases of any business intending to enter into any of Latin America’s markets and can be broken down into several categories. We have added a suggested approach for these sub-categories.

1. Country: Simulation analysis/ Political Risk Insurance/ Check for International Investors Protection Treaties
2. Regulatory: Review Regulations/ assess quality of Government entities/ retain competent counsel
3. Structure: Undertake comparative analysis/ choose the right structure for your interests
4. Direct Tax: Analyze Government Finances/ Prepare a long-term strategy;
5. Talent: Evaluate quality of local talent/ develop comprehensive training programs/ coach and motivate

Country risk is considered from two wide different perspectives: One is the political risk, which summarizes the likelihood that a given country would subject foreign and/or domestic investors to measures that would impair the security in enjoyment of life, freedom, and property. In concrete terms, such political events are political violence and revolution, expropriation and its different corollaries such as Government breach of contracts.

The second perspective of country risk is economic. Broadly, it can be summarized in a series of macroeconomic events that might impair the enjoyment of expected earnings of any investment. Some analysts segment this perspective under financial (Factors leading to inconvertibility of currencies, such as foreign indebtedness, current account deficits and so forth) and economic risk factors (Government finances, inflation and other, that may lead to higher and sudden taxation or desperate Government imposed restrictions on foreign investors or creditors rights).

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