Internationalization, Business Opportunities in Latam and North of Latin America, Business Consulting

1. Caracas – Madrid – Miami - Panamá
Internationalization
and Business
Opportunities in
Latin America
NOLA Region
[North of Latin America]
2013

2. Expertia and CYMA have an extensive and successful experience on the
business development into the North of Latin American (NOLA) countries
 The NOLA region is integrated by 31 countries (33 including Mexico and Brazil), they
comprise a less homogeneous market of 1.10 billion American dollars and more than
175 million people (4.7 billion American dollars and about 486 million people, including
Mexico and Brazil).
 Countries part of NOLA are:
Business Opportunity into the North of Latin America 2
South America Caribbean
1 Brazil 1 Antigua y Barbuda
2 Colombia 2 Aruba and Curacao
3 Ecuador 3 The Bahamas
4 Venezuela 4 Barbados
5 Cuba
Central America 6 Dominica
7 Grenada
1 Belize 8 Guadeloupe
2 Costa Rica 9 Haiti
3 El Salvador 10 Cayman Islands
4 Guatemala 11 Turks and Caicos Islands
5 Honduras 12 Virgin Islands
6 Nicaragua 13 Jamaica
7 Panamá 14 Martinique
15 Puerto Rico
North America 16 Dominican Republic
17 Saint Barthelemy
1 Mexico 18 Saint Kitts and Nevis
19 Saint Vincent and the Grenadines
20 Saint Lucia
21 Trinidad y Tobago

3.  Brazil is the world 7th biggest economy (GDP). Brazil is part of
the BRICS (Brazil, Russia, India, China and South Africa). Brazil is
the 4th world automobile exporter. Its main export products by
economic mean are: planes, electrical equipment, automobiles,
ethanol, textiles, shoes, steel and coffee.
 Mexico is the 2nd country with more people in Latin America. It
is part of the “North American Free Trade Agreement” (NAFTA),
and amount other indicators, Mexico shows a well-controlled
unemployment rate.
 The other 31 countries’ economies are open and most of them
have been in an expansionary period during the last 20 years.
 The “crisis of the biggest” interrupted the region economic
growth, but there is currently a consensus that the worst of it is
over and that the regional economies are starting to response to
the executed investment plans.
 Panama also highlights in the region, it is a solid international
financial hub and a country with state of the art
telecommunications and with a modern international logistic
platform (air, land and maritime). “Ciudad de Panama”, the
capital, is the location for many of the regions most important
transnational companies.
3

4. Economic Indicators - NOLA
4
 The NOLA region shows a relatively
stable economic growth, nonetheless
its biggest economies (Mexico and
Brazil) decline in the year 2011 due to
their higher exposure to the 2008-2009
great recession.
 In general, the countries inflation can
be considered adequate, with the
exception of Venezuela.
 In average, the NOLA region shows
taxes values, as percentage of GDP,
below the world’s value. (personal
taxes, corporate, value added, excise
and tariff)
GDP Taxes
2011
($, Billons) 2010 2011 2010 2011 (% de GDP)
South America
Brazil 2,476.65 7.5 2.9 5 6.6 37.6
Colombia 333.37 4 5.9 2.3 3.4 28.5
Ecuador 65.94 3.6 7.8 3.6 4.5 44.5
Venezuela 316.48 -1.5 4.2 28.2 26.1 34.4
Central America
Belize 1.45 2.9 1.9 0.9 -2.5 29.6
Costa Rica 40.87 4.7 4.2 5.7 4.9 15.5
El Salvador 23.05 1.4 1.5 1.2 5.1 20.2
Guatemala 46.9 2.9 3.9 3.9 6.2 11.5
Honduras 17.43 2.8 3.6 4.7 6.8 18.4
Nicaragua 9.32 3.1 5.1 5.5 8.1 33.5
Panamá 26.79 7.6 10.6 3.5 5.9 26.5
North America
Mexico 1,153.34 5.5 3.9 4.2 3.4 23.2
Caribbean
Antigua y Barbuda 1.12 -7.9 -5 3.4 3.5 19.5
Aruba y Curacao . . . 2.1 4.4 (25.2 & 10.8)
The Bahamas 7.79 0.2 1.6 1.3 3.2 18.2
Barbados 3.68 . . 5.8 9.4 28.7
Cuba . 2.1 . . . 80.5
Dominica 0.48 1 -0.3 3.2 2.8 14.1
Grenada 0.87 0 1 3.4 3 20.6
Guadeloupe . . . . . .
Haiti 7.35 -5.4 5.6 5.7 8.4 17.1
Cayman Islands . . . . . 32.1
Turks and Caicos Islands . . . . . .
Virgin Islands (USA) . 3 1.7 1.6 3.2 22
Jamaica 14.44 . . 12.6 7.5 25.1
Martinique . . . . . .
Puerto Rico (as per USA) 96.26 3 1.7 1.6 3.2 22
Dominican Republic 55.61 7.8 4.5 6.3 8.5 14.1
Saint Barthelemy . . . . . .
Saint Kitts and Nevis . . . . . .
Saint Vincent and the Grenadines 0.69 -2.8 0.1 1.5 4 25.8
Saint Lucia 1.26 0.4 1.3 3.3 2.8 14.7
Trinidad y Tobago 22.48 0 -4.1 10.5 5.1 32.3
NOLA 4,723.62 25.7
WORLD 28.9
Source: WB WB WB CIA
ECONOMIC INDICATORS
REGION-COUNTRY INDICATOR Growth - GDP Inflation
WB

5. Social Indicators - NOLA
5
 The region has experienced a
significant reduction in poverty,
lowering to 33.5% during the first
decade of the 21st century from a
44.5% where it was by the year
1980. This fact has translated in an
increase of about 50% of the
middle class during the last two
decades.
 Unemployment rate in the region
average 6.5% for the year 2012,
stated by the ILO (International
Labor Organization) and it is
expected to improve progressively
for the next decade.
Unemployment
Rate
Total (Millons)
(MM) (2011)
Active (> 15 y.)
(MM) (2010) 1980 1990 2000 2009
% Total Working
Population (2012)
South America
Brazil 196.66 101.59 . 48 . 26.9 6
Colombia 46.93 22.14 42.3 . . 45.9 11
Ecuador 14.67 6.85 . . . 42.5 5.8
Venezuela 29.28 13.4 . 39.8 . 28 8
Central America
Belize 0.37 0.14 . . . . 11.34
Costa Rica 4.73 2.19 . 26.3 . 17.96 7.5
El Salvador 6.23 2.59 . . . 47.9 5.53
Guatemala 14.76 5.68 71.1 . . . .
Honduras 7.75 2.99 . 80.8 68.9 4.4
Nicaragua 5.87 2.37 . . . . 7.83
Panamá 3.57 1.65 . . . 27.5 4.2
North America
Mexico 114.8 49.62 . . 41.1 34.8 4.8
Caribbean
Antigua y Barbuda 0.09 . . . . . .
Aruba y Curacao 0.25 . . . . . .
The Bahamas 0.35 0.2 . . . . 11
Barbados 0.27 0.16 . . . . 11
Cuba 11.25 5.27 . . . . .
Dominica 0.07 . . . . . .
Grenada 0.11 . . . . . .
Guadeloupe . . . . . . .
Haiti 10.12 4.16 . . . . .
Cayman Islands 0.06 . . . . . .
Turks and Caicos Islands 0.04 . . . . . .
Virgin Islands (USA) 0.11 0.05 . . . . .
Jamaica 2.71 1.22 . . . . 13
Martinique . . . . . . .
Puerto Rico (as per USA) 3.71 1.3 . . . . .
Dominican Republic 10.06 4.43 . . 46.9 44.3 13
Saint Barthelemy . . . . . . .
Saint Kitts and Nevis . . . . . . .
Saint Vincent and the Grenadines 0.1 0.05 . . . . .
Saint Lucia 0.18 0.09 . . . . .
Trinidad y Tobago 1.35 0.7 . . . . 5.5
NOLA 486.45 40.5 48.3 42.5 33.5
WORLD 7,000
Source: WB WB IMF
SOCIAL INDICATORS
REGION-COUNTRY INDICATOR Population
Poverty (% of Total
Population)
CEPAL

6. Foreign Investment, Import and Tourism - NOLA
6
 Foreign Investment in the NOLA
countries varies depending on the size
of the local economy, its development
stage and legal security.
 The region shows a high tendency to
import goods and services with the
exception of Brazil, country that has
big technological advances.
 Tourism is a key part of the Caribbean
countries and for some in Central
America.
Good &
Service Import Tourism
(Billons $)
(2011)
(% of GDP)
(2011)
(% of GDP)
(2011)
(% of GDP)
(2010)
South America
Brazil 71.54 3 13 -0.6
Colombia 13.39 4 20 0.1
Ecuador 0.57 1 39 -0.1
Venezuela 5.23 2 20 -0.4
Central America
Belize 0.09 6 65 16.1
Costa Rica 2.18 5 42 4.6
El Salvador 0.25 1 47 1.7
Guatemala 1.08 2 38 0.9
Honduras 1.04 6 69 1.6
Nicaragua 0.97 10 60 -0.2
Panamá 3.26 12 84 7.4
North America
Mexico 20.36 2 33 0.3
Caribbean
Antigua y Barbuda 0.06 5 58 22.5
Aruba y Curacao 0.6 . . .
The Bahamas 0.59 8 57 23
Barbados 0.33 9 . 19
Cuba 0.11 . 19 .
Dominica 0.03 6 54 21.1
Grenada 0.04 5 48 13.5
Guadeloupe . . . .
Haiti 0.18 2 55 -1.8
Cayman Islands 7.4 . . .
Turks and Caicos Islands 0.1 . . .
Virgin Islands (USA) . . . .
Jamaica 0.17 1 54 13.8
Martinique . . . .
Puerto Rico (as per USA) . . 92 .
Dominican Republic 2.3 4 35 7.1
Saint Barthelemy . . . .
Saint Kitts and Nevis . . . .
Saint Vincent and the Grenadines 0.11 16 56 12.1
Saint Lucia 0.08 6 65 23.5
Trinidad y Tobago 0.57 3 33 2.1
NOLA
WORLD
Fuentes: WB CEPAL
OTHER INDICATORS
REGION-COUNTRY INDICATOR Foreign Investment
WB

7. Expertia and CYMA offer to be your company's fulcrum for the global
business development in the NOLA region
Whether your objectives are to…
 Enter new markets in the
North of Latin America (NOLA
region).
 Identify business and
investment opportunities in
the country’s region.
 Improve commercial
affectivity in the region.
 Establish partnerships and
alliances with enterprises and
institutions that already
operate in the NOLA-region.
 Fortify your company’s
international operations in
the region’s countries.
Expertia and CYMA offer…
Opportunity and market identification studies,
with a detailed risk-benefit analyze.
Definition of the best entry strategy to the new
markets and the preparation of the company’s
international business plan.
Commercial representation and marketing
effort based on a success fee structure.
Companionship through the commercial
process and support during the adapting
process to the region’s cultural characteristics.
7

8. Expertia and CYMA working methodology is based on the Bi-directional
Enterprise – Opportunity management and deployment
8
Enterprise with
internationalization objectives:
Region’s Opportunities
1. Identify the company’s
Differentiating Strength /
Attributes.
2. Objective and Willingness degree
Evaluation.
3. Feasibility Evaluation.
4. Signature of Frame contract.
5. Planning and Execution actions
with short and mid term
milestones.
1. Region / Countries
Characterization.
2. Opportunities Classification.
3. Identify the most Attractive
Opportunities.
4. Identify European clients
interested in the opportunity.
5. Feasibility Evaluation.
6. Signature of Frame contract.
7. Planning and Execution actions
with short and mid term
milestones.

9. Internalization and Entry Strategies to the NOLA markets
9
Internationalizing means finding the most adequate entry strategies with the best cost-
efficient relationship to enter a certain foreign market. There are a variety of ways in which a
company can enter a foreign market, amount them are:
 Direct Exporting: Selling directly through
agent or distributor.
 Licensing: Transferring the rights of
marketing or production to a local firm;
useful if the local firm has a relatively
large market share.
 Franchising: Provide rapid market
expansion; adequate for a repeatable
business model.
 Partnering: Establish a commercial
partnership with a local company;
adequate for particular products.
 Joint Venture: Creation of a third party
company by two existing with a
common objective and share risk.
 Buying a local company: When it is a local
requirement by law, or because it the
most adequate strategy due to market and
country conditions.
 Piggybacking: Use of an international
enterprise that already is your local
distributor for your foreign sells.
 Turnkey Projects: Method use for
international projects, which is effective
when financing is guaranteed by an
international organization such as the
World Bank.
 Greenfield Investment: This process imply
the most expensive cost to operate the
new business, but it could be a local
requirement to entry.

10. Aside of our knowledge and local presence, we guarantee the
development of your business in NOLA by covering all key success factors
required for each case…
 Team with extensive and proven experience in NOLA.
 Valuable network, collaborators, agencies and multilateral
institutions / organization.
 Offices in Caracas, Miami and Panama.
 Office in Spain that allows for close and direct contact
with European clients.
10

11. EXPERTIA:
Calle Núñez Morgado 5.
28036, Madrid -España
Tel: +34 91 323 59 99
www.expertia.com
E-mail: contacto.madrid@expertia.com
CYMA:
2335 NW 107th Ave. Suite MB42. Box 139.
Miami, Florida 33172 – USA
Tel: +1 305 592 08 00
E-mail: cymabc@cymabc.com
11