SAN JOSE -- Electronics manufacturers that never belonged in China in the first place are beginning to abandon it for sites closer to home, including South America, a new study finds. But entrenched geopolitical and other factors mean not each of the dozen countries on the continent is a good choice for a new manufacturing hub.

"South America is not one thing," says Charlie Barnhart & Associates, author of the study. "The continent has rich natural resources and a growing middle class making it an attractive investment destination. However, global managers that haven’t spent much time studying the region often equate South America with Brazil and don’t know too much about the other 11 independent countries and 3 territories. Each has a unique history and national objective that may or may not be aligned with an OEM’s global business objectives."

CBA's report concentrates on Brazil, Argentina, Chile, Colombia, Peru and Ecuador. It points to the potential for new markets in such places as Brazil, where the US government is looking to increase arms sales, and notes ironies of, for instance, Chile, which ranks high in corruption but is also the easiest of the six in which to do business.

For more on the report, click here.

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