The enormous economic potential of Latin America, especially of the Mercosur countries, became a magnet for international investors seeking higher yields for their capital; direct investment flows multiplied during the past ten years. Public donors of capital were largely replaced by private investors.
The growing number of multinationals in Latin America, the multilatinas, as they are called, is a clear indication of the new business landscape in the region. The technical progress that accompanied the liberalisation of capital movements helped to diversify foreign trade structures and, as a result of greater efficiency, to improve the competitiveness of Latin America on the world market.