1. Assuming that eBay makes the decision to expand into Latin America, prepare a roadmap for eBay's expansion in this region over the next five years. Specifically, what should be the sequence of entries in the six major Latin American countries in Table 6? Use relevant facts from the case to support your decision. The six main countries in Latin America are Brazil, Argentina, Mexico, Colombia, Venezuela and Chile. Although eBay was the largest e-commerce company by developing a web-based community in 2001, it was not well recognized in the Latin America region. Language, exchange rate and lack of knowledge of the region were the main challenges eBay faced. In early 2001, eBay purchased iBazar, which allowed them to enter a Latin American market: Brazil. However, the acquisition was driven by the European market. Latin America was therefore not the main center of this action. But Brazil was a good start. Brazil was already among the top twenty global e-commerce markets and accounted for more than half of the region's e-commerce activity. According to an IDC study, the number of Internet users in Latin America will increase by 40 percent per year between 2001 and 2005. Trade is expected to reach $72 billion in Latin America by 2005. Mexico and Brazil would largely dominated. I would say Mexico is the second market that eBay will enter. However, eBay didn't know much about the region, language and culture. eBay therefore needed a partner before the second stage. MercadoLibre.com and deRemate.com are the two main options. In 2001, MercadoLibre.com became eBay's exclusive partner for the Latin America region. MercadoLibre was established in 1999 in Argentina (Argentina would be the third market) and later expanded to Brazil, Mexico and other South American countries. "MercadoLibre will acquire iBazar Com Ltda., the Brazilian subsidiary of iBazar SA, recently acquired by eBay. In exchange, eBay will receive a 19.5% stake in MercadoLibre.".