Photo: Ian Holton
by David Ramirez
Wharton dean’s views on Asia, the US and Latin America
The cooling of the Chinese economy may be driving Latin American firms to rethink the value of expanding in that country.
However, it may not necessarily be the time to abandon efforts in China, although it may be opportune to look at other geographies in Asia, as well as to seize the opportunities in the US.
This is one of the main conclusions of Latin Trade’s interview with Geoffrey Garrett, Dean at the Wharton School of the University of Pennsylvania.
Mr. Garrett, Australia born, is a well-seasoned academic with experience in the analysis of international affairs, among others. He currently is member of the New York-based Council of Foreign Relations and comments and writes for major media outlets and specialized publications on global business, economics and politics.
It does not seem to be the best time to do business with China. How do you think Latin America shall react to this trend?
First, slower growth in China is essentially not bad, if it is smooth and if it drives the economy into a more domestic consumption-driven pattern. This will allow the country to hold the largest middle class in the world in the long term, with the enormous potential that this represents. A second factor is that the recent slight real appreciation of the renminbi has meant more outward investment all over the world. In 2014 for the first time, Chinese investment overseas exceeded inward foreign …
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