The determinants of German FDI to four main Latin American economies reflect the stringent limitations German MNCs had to export their products when the import substitution industrialization strategy was implemented throughout the region. To circumvent its pervasive effects, they invested heavily to open up subsidiaries to locally produce what those highly protected markets could not. Nowadays, German FDI as primarily been directed to expand the market presence of German MNCs by modifying their operations in Latin America in order to sell their products worldwide.