In 2005, foreign direct investment inflows to Latin America and the Caribbean amounted to over US$ 68 billion, almost 11% more than in 2004. These inflows greatly exceed the figures recorded between 2001 and 2003, but they still fall short of the volumes observed during the FDI boom of the late 1990s. The region also continues to see its share in world flows decline, which suggests that it has yet to realize its true potential for attracting such investment. Success in taking advantage of FDI and the presence of transnational corporations depends, to a large extent, on the extent of local companies' absorptive capacity. This year's report provides a detailed analysis of the competitive positions and internationalization processes of a large number of emerging Latin American transnational corporations.
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