Business Latin America is volatile part of the world with issues of political st

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Business

Latin America is volatile part of the world with issues of political strife and often extreme economic fluctuations. Inflation and currency exchange rates are often especially volatile in this part of the world. DirecTV Latin America even filed for bankruptcy protection in 2003 due to its many woes from the unrest and economic hardship in this part of the world. The company is currently doing much better but still faces a lot of risks.

Do some research on DirecTV and its operations in Latin America and answer the following questions;

Write a 4- to 5-page paper addressing the following questions:

Explanation / Answer

Background

DirecTV is an American direct broadcast satellite service provider and broadcaster based in El Segundo, California. Its satellite service, launched on June 17, 1994, transmits digital satellite television and audio to households in the United States, Latin America and the Caribbean (Stelter, Brian. 2014). The primary competitors are Dish Network and cable television providers. DirecTV provides television and audio services to subscribers through satellite transmissions. Services include the equivalent of many local television stations, broadcast television networks, subscription television services, satellite radio services, and private video services. Subscribers have access to hundreds of channels, so its competitors are cable television service and other satellite-based services (DTV Group (June 26, 2010)).

DirecTV and Latin America

DirecTV, with its 18 million subscribers in Central and South America, is the biggest pay TV provider in Latin America where the market for such services is already growing at a much faster rate than the mature U.S. market. Latin America has an under-penetrated pay TV market; about 40 percent of households subscribe to pay TV, and a growing middle class, and is DirecTV's fastest-growing customer segment (DTV Group (June 26, 2010)).

The countries in Latin American smaller growth opportunities and formidable economic hurdles, the main challenges are:

Steps to protect such risk in Lain America are:

Major financial and economic risk in the Latin America

GDP

Between 2008 and 2012, Latin America experienced a steady growth in GDP. During the past few years, growth has slowed; GDP growth projection for 2014 is expected to be around 2.3%. At the current rate, the region will experience a slight decline in growth compared to the 2.6% increase in GDP that was estimated for 2013 (Vines, James. 2003). However, while many emerging markets have been volatile during this period, Latin America as an aggregate has consistently provided a positive return on investment, and the region

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