Introduction

Todays world is ever changing. National borders are becoming less important in times of global capital movements, cross-border migration and highly interwoven transnational trade relationships. Globalisation is – since the 1990 and the collapse of the bipolar world – a well-known phenomenon and it is beyond question that nation states will have to adjust to its influences in the long run. The governmental response has so far been the creation of international free trade agreements and multilateral institutions like the WTO for instance, which are to oversee global trade systems and which also have as their task the liberalization of markets around the world.

Advocates of trade liberalization claim that the eradication of trade barriers ultimately leads to an increase in a countries overall wealth, whereas more leftist opponents stress that free trade predominantly benefits multinational corporations and the corporate ruling class. As a matter of fact, States themselves or Governments do not trade. Consequentially, companies and corporation are most likely to benefit from free trade Areas and investment opportunities abroad. However, doing business in third countries underlies varying circumstances. Taxation, environmental regulations, labour standards and investment regulations are factors of production that vary from country to country.

For businesses in order to make use of comparative advantages, it is therefore essential to know about the differences between countries in terms of the local business climate. This paper aims at unfolding those differences for three Latin American countries: Mexico, Belize and Cuba.