Strategy in Uncertain and Volatile Markets
Figure 8.1 shows our understanding of how strategy is influenced by major drivers in the region. In this revised framework, we identify four major blocks intimately related to strategy in Latin America. The first block includes the five drivers identified in Chapter 1: market dynamics, regulatory reforms, regional integration, global financial policy, and new technology. The second block describes the immersion and links of the region with the global economy through the trade and investment flows. The third block captures the impact of drivers and links to the global economy on the region's macroeconomic performance and the volatility of adjustment. The final block is the strategy of firms as they react to industry adjustments and opportunities and challenges they face in this region. We discuss each of these blocks below.
Figure 8.1 Network Strategies in Latin Markets