Assessments

Paraguay has used its low production costs to attract manufacturers from Brazil and Argentina.

The government has used the country's lower production costs to lure Brazilian and Argentinian manufacturers. But its economic strategy could have a limited lifespan.

Paraguay Exploits Its Industrial Advantages

Argentina

Brazil

Paraguay

Paraguay's position as a buffer state between Argentina and Brazil means that it remains largely at the mercy of the governments in Brasilia and Buenos Aires on matters of trade. Now, however, it appears as if the government in Asuncion has found a way to make itself an industrial hub of Latin America's southern cone by encouraging companies from its large neighbors to ditch the comforts of home and set up shop in Paraguay.

ASSESSMENTS

Paraguay Exploits Its Industrial Advantages