Does that mean there is a sell-by date for that strategy?
Between 1997 and 2001, half of Spain’s FDI was in Latin America. But the Argentine crisis reminded investors of the volatility of the region. For that reason and having built up expertise in the relatively “easy” markets of Latin America, more Spanish FDI has been directed, in particular, at European countries that, if not culturally close, are geographically and administratively close — through common membership in the European Union. Besides, the cultural connection hasn’t been dropped entirely. Thus, Spanish bank BBVA may not want to expand more in Latin America. But it is using the bridge afforded by a common language to pursue Hispanic customers in North America. Of course, I don’t see it working in all sectors. Language can’t really matter in cement, for instance. But in software, yes. TCS’s expansion in Latin America wasn’t only about building LatAm delivery capabilities, but also about serving customers in Spain and Portugal. Redefining global strategy Even with all these mech
