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International Business Diplomacy: Lessons from Latin America
Abstract
This chapter aims to analyze conflict resolution between Multinational Enterprises (MNEs) operating in Latin America and their host countries. The chapter focuses on the importance of establishing a policy for addressing local governments through permanent channels, as a strategy to solve disagreements with the authorities. The analysis includes different scenarios drawn from the experience of foreign firms in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. Thus, international managers may get a deeper view about the consequences of relying on formal diplomatic channels when conflict arises. Decision makers at MNEs need to evaluate separately each country outlook in order to assess the level of confidence that may be placed on diplomatic representation from the parent country and, consequently, the convenience of developing additional ties with local authorities through international business diplomacy.
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