| Description |
Due to the increasing complexity of the economic relationship between the United States and China, companies should look to replace current business relationships in Asia, and establish permanent operations or source from Latin America (LATAM). This essay will include an analysis of the ongoing economic conflict between the US and China, the complexity of international supply chain management, and give context to critical decisions that multinational corporations now face within their business processes. A proposal will then be presented for international expansion of the "Opportunity Zone" program, which is currently underway in the United States of America, to the LATAM region. The proposal will highlight similarities between the current program, and the expansion into Latin America, and address the goals of the current presidential administration within the United States. Government aid is a potential option in order to hedge the risk that companies have long faced in expanding into traditionally unconventional areas. By implementing such a program outlined in the proposal, stability in the region of conflict would improve without providing aid directly to corrupt governments. Facilitating the movement of companies within the region will help stimulate stagnant economies through expanding the formal economy, investing in more efficient infrastructure, and allow implementation of advanced green technology. This essay will also examine the effects of the current COVID-19 outbreak and will highlight the importance that companies take action and look to source outside of China. |
