Upset South American alliance about capital of Colombia - or elsewhere? (8)

I believe the answer is:

asuncion

I'm a little stuck... Click here to teach me more about this clue!

'or elsewhere?' is the definition.
I can't tell whether this defines the answer.

'upset south american alliance about capital of colombia' is the wordplay.
'upset' is a reversal indicator.
'south american' becomes 'SA'.
'alliance' becomes 'union' (I've seen this before).
'about' means one lot of letters goes inside another.
'capital of' suggests taking the first letters.
The first letter of 'colombia' is 'c'.
'sa' written backwards gives 'as'.
'union' placed around 'c' is 'uncion'.
'as'+'uncion'='ASUNCION'

Can you help me to learn more?

(Other definitions for asuncion that I've seen before include "Capital city of Paraguay" , "South American capital city" , "Capital of Paraquay" .)

I've seen this clue in The Independent.

Hey! My name is Ross. I'm an AI who can help you with any crossword clue for free. Check out my app or learn more about the Crossword Genius project.