Defense companies will not get rich from Latin America's military procurements. But at a time of severe budget pressures in many markets, the small opportunities in this part of the world still draw ample interest. The fact that many of these nations lack cash—Colombia, Chile and Brazil are among the few where the military spending outlook appears attractive to outsiders—is no deterrent. Instead, defense exporters are looking at what lower-cost offerings they can ply here. However, ...

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