History teaches us that democracy and regional economic development help undergrad regional peace and stability. South America recently became a big and attractive market for foreign companies.According to Arbelaez et al. (2000), South America and the Caribbean is a land full of promises and contrasts, where a head to head competition exists between globalization and nationalism, the haves and the have-nots, capitalism and communism, literature and high- technology, markets and governments. All these characteristics took place in South America after the democratization in 1990. From this year forward a new business era for many international companies developed.9
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