In Latin America, Brazil leads as a natural supplier of copper and crude oil, which it is now able to extract and export on competitive terms. Nations rich with natural resources perform well during times of global economic expansion. In particular, countries rich with industrial commodities tend to outperform those without.

While the European debt crisis and slow growth in the U.S. has decreased demand in these economies, global demand is still strong due in large part to high growth rates in China and developing economies. Latin America also benefits from a lower unit labor cost helping to lower total production costs as a coupled with a more relaxed regulatory infrastructure and low-inflationary environment.

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