Latin American International Locations Aren 't Resistant The Global Disaster

Sin duda el primer paso sería hacer un modelo de flujo de efectivo el cual hiciera un análisis de sensibilidad en la valuación de Pecom, obviamente la clave de este análisis es darle el valor adecuado el riesgo país y el costo de capital, dentro de los factores de riesgo en América Latina a evaluar están las devaluaciones, repatriaciones, control de capitales, expropiaciones y todos estos cambian en todos los países.

The South America has evolved as the one of the most dynamic region of the world so much development taking place. In 2005 Latin American economies managed to grow at average of 5.5% while inflation is in single digit which shows that it has created the economic prerequisites to deal with the aforementioned problems.

These actions led to the fall in prices of securities. Loans were liquidated and borrowing from banks and other lenders became difficult. Interest rates would rise rapidly and sharply. This type of financial hardship led to the liquidation of bank credit. Over a long enough span, this liquidation would lead to money crises (Federal Reserve System 5th ed pp. 10-11).

natural disasters). Gallup et al. (2003, pp.41, 46) have estimated that natural disasters in Latin America over the last 30 years have cost up to $3.3 billion and in extreme disasters costs can reach 10 per cent of a country’s GDP. This, coupled with the fact that they suffer regularly from natural disasters due to their location, means that they find it harder to recover from them. The destruction of crops causes vast economic loss which cannot be regained as farmers rely on monoculture. Furthermore, many buildings in developing countries are often built from weak materials which causes mass destruction and costly re-construction which these countries cannot afford.

Since 1992 the El Salvadorian economy has been trying to recover from a bitter war that left many wounds open. Between 1991 and 2002 poverty levels in the country declined significantly and many social advances were seen as school enrolment and access to health and water services increased. Therefore someone can assume that since the traumatic civil

Over the course of the past half-millennium, the 33 countries that now comprise Latin America and the Caribbean have gone through drastic change. Since the discovery of the New World in 1492, each country has gone through some level of colonization by a European power and transition to its current state. During this period the regions have seen political, social, religious and economic transformations of various degrees.

As per CIA handbook, “Since 2003, Brazil has steadily improved macroeconomic stability, building up foreign reserves, reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments, adhering to an inflation target, and committing to fiscal responsibility. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. Brazil's currency and its stock market - Bovespa - saw large swings as foreign investors pulled resources out of Brazil. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in the second quarter, 2009. The Central Bank expects growth of 5% for 2010.”

Natural disasters cause a lot of damage to the economies in Latin America when they happen. The damage can last for months, years or even decades. Natural disasters are hard for everyone, but it is even harder for Latin American countries to recover

The Americas, now known as Latin America, has gone through many changes in its history, from being conquered by Spain and Portugal, to the people fighting for its independence and finally, making a living as newly independent countries. From the years 1850 to the end of the 19th century, each region had influences, specifically those that dealt with the after effects colonial rule had on the land. Nations that made up Latin America began modifying different portions in their government in attempts to benefit the majority of the people. More or so, they accomplished this goal, each with their own challenges. Evidently, changes within the social, political and economic systems were focused on external factors.

As mentioned earlier Chile had money set aside to deal with disasters, this was a part of Chile’s culture of preparedness. Chile had dealt with earthquakes before the 2010 one and had a non-corrupt government who fostered this culture of preparedness both within their government and among the Chilean people through making sure all buildings were up to code, educating people on what to do in case of an earthquake, and having funding for disaster relief efforts available. This preparation paid off for Chile when they experienced far less death than typically expected for a earthquake the size of their 2010 quake. Haiti and Nepal were both quite the opposite, with literally zero culture of preparedness being fostered by their respective governments. The governments in both nations were quite corrupt, doing little to make sure building codes were enforced and people educated on earthquakes.

The majority of countries in Latin America have experienced a significant increase in violence and crime since the 1950s, a trend often seen urban area with social exclusion. Rising levels of social violence in El Salvador are part of a regional and global trend. During the first half of the 1990s the homicide rate reached 139 per 100,000 residents, by 2000 it had decreased to 44 per 100,000. Despite the drop in homicides, the total number of violent crimes remained the same, from 58,108 in 1996 to 53,204 in 2000 with 38% of all violent crime involving guns. El Salvador has been affected by many natural disasters from flooding, droughts, earthquakes and volcanic eruptions. The disasters have created serious problems related to infrastructure, food security and water quality, which all contribute many health

since 2000 (Edwards, S., 2005).” As a result of the increase in foreign demand for U.S. assets, Americans have had access to foreign investment enabling the United States to function with large deficits for years. Looking forward, the United States dollar and the economic health of the country is very dependent on foreign investment in U.S. assets. A potential risk looms in the chance that Asian central banks might lower their demand in U.S. assets resulting in a sharp decline in the U.S.

Urbanization in Latin America increased in fifty years (1925-1975) from 25% to 61.2%. The pace of urbanization, however, declined between 1975 and 2000 and currently the proportion of people living in urban areas reached 75.3%.

The El Nino Southern Oscillation, or simply El Nino, has hit Ecuador with devastating effect a number of times over the past t we nty-five years. The 1982-83 El Nino cause over $650 million in damage, and was the cause of 600 deaths, wreaking havoc on Ecuador ’s agricultural industries especially. Most recently, the El Nino of 1997-98 battered Ecuador, causing $2.65 billion worth of damage. This El Nino is considered to be one of the biggest ever, and the floods and torrential downpours that struck Ecuador again crippled the agricultural industries, including the important banana industry. In addition, parts of the SOTE pipeline we re damaged, and along with a global depression in oil prices Ecuador ’s economy was thrown into a tailspin.

companies and investments in financial instruments. Fourth, the currency turmoil affects U.S. imports and exports as well as capital flows and the value of the U.S. dollar; the U.S. deficit on trade was rising as these countries import less and export more. Fifth, the crisis is causing economic turmoil that is exposing weaknesses in many financial institutions in Asia; some have gone bankrupt. The economic problems of the troubled Asian economies are adversely affecting the United States, Japan, and others.