Regulatory Risk and Foreign Investments Developed in Latin America

In recent decades the well-defined contexts of the social sciences have shown a tendency to disappear. This is particularly relevant for geography and economics, two disciplines that have discovered a set of common interdisciplinary interests. In this process, the growing consideration of space and territory as essential variables to be considered has permitted the elaboration of new perspectives for the analysis of the economic system and of international financial regulation. As a result, and within the interesting debate regarding the renovation of economic geography, we have set ourselves to the study of a subject raising unquestionable implications regarding space and the productive system: regulatory risk and country risk. Each national state presents particular models of inner institutional organization and faces individually its insertion into the global market. Geography (political) has shown this repeatedly since the end of the nineteenth century, and at present it permits the improvement of the concrete focuses of work and of the indicators employed for financial economy. It is a branch of economic knowledge that has received enough relevance when deepening its investigations concerning the behavior of the transnational capital concerned. At the same time, its relevance is due to the globalization process and to the emergence of a new and singular political map, which should be known a priori for the evaluation of the security and profitability of financial operations.