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The Labor Factor: Risks of Burgeoning Labor-Dependent Industries in Latin Americas- August 2008

General Interest and Trends
 
Alexander Kapur  

 

ImageRecent trends in global consumption, such as Asia’s surging need for commodities and a growing international market for bio-fuels, have favorably positioned Latin America as a key supplier of raw materials and other base products. As multinational and local players expand to meet urgent demand, both management and investors should be aware of escalating labor issues that can undermine profitability in such ventures. Labor violations, disputes, and union-related violence are becoming more visible and costly beyond purely reputational concerns, exposing foreign investments to elevated levels of specific labor-related risks.

 
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