ABSTRACT
Introduction This chapter examines inward foreign direct investment (FDI) in Latin America and the nature of the major benefits and risks facing foreign investors. The discussion advances the view that the region offers foreign investors substantial benefits from market potential and cost advantages. These benefits are attenuated by macroeconomic vulnerabilities and institutional weaknesses, which represent two broad sources of continuing risks. We derive lessons from past experiences and examine the prospects and opportunities ahead, giving special emphasis to Spanish investments.
