LATIN AMERICA

Sumary
The presentation began analysing the general aspects of Latin America, as culture, major countries population, and then they made a comparison between Guatemala and Chile.

Then we saw some isues about Guatemala, the ethic relations, the basic economy, the division of labor and the classes and castes. Also we learn how to do business with them.

Finally we learn from the readings about the ethical evaluations, intentions, and orientations of accountants, from the evidence of a cross-cultural examination. And also we saw the integration processes in the western hemisphere.

Question
¿Is Latin America prepared fot the economic crisis in the world?
Recently the dramatic falls in Latin America's stock markets on what is already being called "Black Monday 2" have reignited concerns about how well-placed the region is to withstand the global financial crisis. Nerves were frayed during Monday trading in Sao Paulo.

Monday's falls in Argentina, Brazil, Mexico and Chile were all greater than the last one-day big decline in mid-September after the announcement of the collapse of the US bank, Lehman Brothers. The Merval Index in Buenos Aires, for example, dropped 8.7%, the worst fall in six years. Sao Paulo's stock market fall of more than 9% was the worst in nearly a decade, as was Santiago's. Mexico City's drop was the worst since 2000.

Now he have to see how exposed is Latin America, and analysts say there is no doubt that the region's economies are still better-equipped than in previous years to absorb the effects of the international crisis. But countries like Mexico and Brazil have much lower public debt compared to the 1980s and 1990s, the years of Latin America's debt crisis.

Also know we can see that most countries in the region also have higher reserves and a more diversified export base.

So far, no Latin American banks have gone bankrupt. But there are fears that a general tightening of international credit lines or a rise in interest rates could feed through to local banks, particularly those which are local branches of international banks.

This crisis would adversely affect everyone from small businesses to exporters seeking credit. It is worth remembering that one major factor behind the region's generally strong economic growth, which has been between 4% and 6% in the last three years, has been the boom in credit in recent years.

Analysts say Latin America's poor will also be badly affected. The global financial turmoil will be another obstacle, along with the food-price inflation, maintaining the recent drop in Latin America's poverty rate.

Bibliography
S EDWARDS. Crisis and reform in Latin America. orton.catie.ac.cr, 1995.

KL REMMER. The Political Impact of Economic Crisis in Latin America. American political science review, 1991 - cat.inist.fr