The euro zone is working very well. Large and small countries are benefitting. Financial defaults are now a thing of the past across Europe. Wealth is everywhere – at least in the US and euro zone. Develop a plan for a similar system for Latin America. Here are a number of considerations: a. Some countries speak Spanish. Portuguese, English and other languages are also spoken fairly widely. Do not select only Spanish-speaking countries. b. Setting up a euro zone kind of arrangement does not mean that you should include every country. Pick countries that have some kind of compatibility – complimentary products, possibly raw materials as well as manufacturing; combine large and small countries; wealthy and poor might work, etc. The per capita income across Latin America is far lower than North America or the euro zone. This means the people and governments will be risk averse where financial matters are concerned. The zone idea would have to have strong appeal. See if any countries are already thinking of a euro zone type of arrangement. They would be more likely to want to join. c. Strive for some degree of balance in your choice. For example, industrial strength, manufacturing experience, agricultural production, service strength. Do not pick all agricultural, all small, etc. d. The more work you do the better. For example, what would the currency be? What advantages would a single currency provide? How much improvement would the major corporations gain on day one – meaning more sales, larger markets, etc. e. Political turmoil and corruption are issues in the region. Rather than rejecting a country, you might consider how to reduce such problems. Is there some common code of ethics under consideration? Would this improve each member of the group? f. Do not include countries that are outliers, meaning countries at odds with their neighbors or that have far-left leaning governments or that might seize property of successful businesses. g. Do not swallow the myth that oil is a means of wealth. h. Be careful of big country-small country rivalry. A workable plan should include big and small economies, but big countries might “bully” small countries. Be able to defend your choices. i. Size of middle class is an issue discussed in class. Keep this in mind. Remember, countries with large middle classes do not want to get drawn into a pool of countries that have huge low class populations. j. Business is competitive. Be able to show that your recommendation has an “edge” on other countries and alliances. If you can show how the individual members would improve through the association, that would be strong evidence of a good design.
