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We explore how leading companies manage relationships in supply chains that are not formed by natural market forces. Rather, they were stimulated by exogenous forces, such as the Free Trade Zones that are created by the Government's policy initiatives for purposes of regional development. We researched electronic industry in Manaus, located in the Brazilian Amazon Rain Forest. Multi-methods using qualitative, structured interviews, and quantitative approaches, structural modeling equation, were used. Results indicated that the companies settled for a location that they would not do under normal conditions and, secondly, that there was an expectation of externality as the makers of the strategy, in this case the public entity. Coordination among the members is not enough structured. No strategic supplier was found on the local FTZ, indicating that the local suppliers are only based on the premise of volume vs. logistics cost. [ABSTRACT FROM AUTHOR]

Abstract: In this paper, we model foreign capital flow to Brazil as stemming from an investment decision whose risk depends on the expected rate of loss of foreign reserves. This motivates the estimation of an empirical relationship between these two variables that is valid for “normal” periods (when there is no foreign exchange crisis) which is used to calculate the capital flow associated with a given expected rate of foreign reserves loss. This empirical relationship is then introduced in a General Equilibrium Model which had been previously implemented for Brazil, but had exogenous foreign capital flow, to produce a version of it with endogenous capital flow. After adjusting the base year to build an artificial base case where the market for reserves is in equilibrium, we compare the response of the two versions of the model by simulating the implementation of the trade agreements with the Americas (ALCA) and with the European Union. The main conclusion is that the inclusion of endogenous foreign capital flow in the model significantly amplifies, and in some cases changes, the real effects of these free trade agreements. [Copyright &y& Elsevier]

El artículo discute varios acontecimientos dentro de la economía latinoamericana. Brasil anunció una lista de productos, como máquinas para la industria textil, para exportación a la Zona Latinoamericana de Libre Comercio. La primera reunión de la Junta de Directores del Banco Centroamericano tuvo lugar el 23 de enero en Tegucigalpa, Honduras.

Se presentan noticias que tratan de la economía latinoamericana. Brasil preparaba una lista de mercancías para la Zona Latinoamericana de Libre Comercio. Los Congresos de Chile y México estudiaban la ratificación del Tratado de Montevideo. Colombia había decidido ingresar en la Zona de Libre Comercio. Cuba se retiró del Banco Internacional de Reconstrucción y Fomento. Los Estados Unidos había prohibido las exportaciones a Cuba.

El artículo discute el proyecto de acuerdo de zona libre comercio en la región meridional de América Latina. Los países participantes, Argentina, Brasil, Chile y Uruguay, dieron como propósito del acuerdo la posibilidad de crear un mercado común en América Latina y expresaron su interés en recibir recomendaciones sobre la idea. También expresaron su interés en asegurar la integración económica en la región.