If Hungary is the new Czech Republic, Uruguay is the new Argentina. At least that's the hope of Lorenzo Benedick, president, Vagabond Films, NY, which has just set up shop in Montevideo to augment its operations in South America and the Caribbean.

"We don't compete against ourselves. It's different options for clients," says Benedick, just off the plane from Caracas, Venezuela - which happens to be next on the open-a-new-office list. "It depends on what they want to focus on. Sometimes we offer three different countries for the same job. They can make the best choice according to needs."

Choosing Uruguay is something that Argentineans have been doing for years. Since the country is smaller, slower-paced and much more safe, residents of Buenos Aires have been vacationing there for some time, specifically going to Punta del Este, widely acknowledged as the best beach in South America.

According to Benedick, beyond the sand, producers have many other reasons to go. "They like the casting possibilities. It's very European from Italy, Spain and Germany." Benedick admits Montevideo is behind Brazil and Argentina in terms of crew, gear and facilities, but Buenos Aires is across the river and, with all the work that Vagabond does there, moving stuff around to accommodate a shoot in Montevideo is a snap. "The only thing we are missing is huge mountains."

Recently, Vagabond used Montevideo as a stand-in for California for Kraft's O'boy drink and as the 1960s French Riviera for a top-secret Nokia project.

So why is the map of South America slowly getting filled in by Vagabond? "Before, we were servicing Europeans coming to America," says Benedick, "but now 50% of our business is going to South America."

He adds that with all the experience running North American shoots, the company has become known for providing the same service level in the southern hemisphere. "Most of [our key crew] have worked in America and are bilingual. This way we can give them what they expect in the US."

Then, of course, there's the cost. Aside from South American countries that few besides cartographers have heard of, Uruguay is one of the cheapest places to shoot. "Despite the need to move around gear and talent, it's still cheaper," claims Benedick, "even if you want a polar bear."

Vagabond Films> www.vagabondfilms.com