TRANSNATIONALS' PROFITS COME FROM LATAM AND CARIBBEAN

Quito, May 17 (PL)- The profits obtained by trans-national companies in Latin America and the Caribbean multiplied by five in the last ten years, going from $20.4 billion USD in 2002 to $113.6 billion USD in 2011.

Around 55 percent of those profits, also known as Direct Foreign Investment (DFI) rents, are sent to the headquarters of the transnationals, according to a report from the Economic Commission for Latin American and the Caribbean (ECLAC).

The considerable increase in those profits tends to neutralize the positive effect of direct foreign investment on the balance of payments, said the UN entity.

The DFI rents from 2006 to 2011 in the region have averaged $92 billion USD annually, 92 percent of the value of direct foreign investment entering in the same period, reveals a research from the Telegraph daily.

According to ECLAC, trasnational companies are present in almost all the sectors of the economy and generate considerable profits in a context of domestic demand increase and high prices of the elementary export products.

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