German chemical firms in Latin America in the 1970s and 1980s

Abstract

This article explores foreign multinationals and their analysis of the future economic relevance of Latin American countries amidst the economic and financial turbulences in the 1970s and 1980s. In particular, it investigates how German chemical companies adapted their investment and foreign market strategies towards the fast-changing Latin American markets. Utilising a variety of archival resources, the article presents two case studies (Bayer/Hoechst) from the German chemical industry, which is one of Germany’s most globalised sectors. The article shows the way in which they adapted to Latin America’s state-led industrialisation and macroeconomic uncertainty by strategically managing the emphasis between exports and FDI. Despite the unmet expectations of the 1950s and 1960s, these companies maintained their presence in Latin America but progressively shifted towards overseas production through their own subsidiaries.