Understanding cultural differences is essential if treasury is to achieve its objectives
by Rita Cook, Head of North America International Treasury Sales, Commercial Banking, Bank of America Merrill Lynch and Ana Diaz, Head of Latin America Global Commercial Banking, Bank of America Merrill Lynch
U. S. companies, especially in the middle market, are increasingly optimistic about their growth prospects. According to Bank of America Merrill Lynch’s 2015 CFO Outlook survey, 65% of CFOs forecast sales growth in 2015 compared to just 54% last year. To encourage and foster growth, 96% of companies are implementing growth strategies, including overseas expansion. For the first time, participants in the CFO Outlook Survey indicate that Latin America is the preferred location for US manufacturers’ new operations.
“Companies have traditionally focused on Europe and Asia when they expand, but now Latin America is the favoured destination: 16% of US manufacturers are looking to establish new operations there,” explains Ana Diaz, Head of Latin America Global Commercial Banking at Bank of America Merrill Lynch. “The change reflects the stable macro-economic and political outlook in many countries in the region, an increasingly large and affluent middle class, and an attractive demographic backdrop.”