Decision criteria for foreign direct investment in Latin America

If policies are to be based on specific effects, altering the desirability or undesirability of different types of activities, then careful distinctions will have to be made among the different forms of foreign investment and even the different impacts of each. Based on such distinctions, policies will become discriminatory and less than multilateral, depending on who is undertaking what type of activity and whether its effects are seen as desirable or not. Chapter I distinguishes the various conceptual patterns of behavior and orientation, showing some effects that are of concern to governments.
Chapter II details the decision criteria employed by governments in permitting entry of foreign investors, reflecting their fears over domination of economic and cultural life by investors and licensors. These decision criteria are significantly different from those used by the in vestors and licensors themselves, setting up the conflict of interests.

Chapter III examines the regulations recently codified by the Andean Pact countries, by Mexico, those that were employed by the Central American Common Market (CACM), and the controls imposed by Brazil. Each of these is assessed in the light of the governmental concerns and the distinctive types of business activity, indicating the provisions that may require modification (by negotiation?) if they are to achieve their objectives. Codification of rules itself raises some difficult problems for international business. Prior to codification, each negotiation occurred under malleable rules and regulations, which could be tailored to meet the particular circumstances, objectives, and capabilities