Fact of the Month

Chile is the freest economy in Latin America,according to the 2009 Index of Economic Freedom. It is also the 11^th freest in the world.

Feature of the Month: Chile

Home to the Andes Mountains, the Republic of Chile is a nation poised to play a larger role in the global business world. Following a severe 1970 depression, Chile began to shift towards a more privatized economic system. The shift paid off, and over the last three decades, Chile has become one of Latin America’s most stable and prosperous nations. Chile also recently widened its access to the global trade market by signing Free Trade Agreements(FTAs) with global power players such as China, the U.S., European Union, Singapore, and Japan. In addition to the FTAs, Chile’s laissez-faire business regulations and strong protection of property rights have made it an ideal trade partner. This has led to a high volume of foreign trade, and Chile becoming the 25^th most competitive country in the world.  As for the goods and services which make them competitive, Chile’s economy is highly dependent on mining, as it is home to the largest copper reserves in the world. Other major Chilean industries include manufacturing and financial services. The commodity bubble of 2008 allowed Chile to amass large amounts of capital, and responsible fiscal policies have allowed this capital to help carry the nation through the recent economic downturn. The extra capital makes Chile primed for future growth as the rest of the world recovers.

From the globalEDGE Blog

In the month of June, Chile saw a 22 percent jump in wine exports. This could be due to a rebounding economy. It could also have to do with the fact that Chile is producing more wine than ever, and at a better quality than it ever has. Given the positive direction that Chile’s wine industry is heading, what implications does this have for the economy and other businesses in Chile?

Wine only comprises roughly two percent of Chile’s total exports, but the audience to which wine is marketed makes it a product that can impact other businesses as well. For one, the production of great and better wine in the midst of an economy in rebound means that Chilean wine producers will see many more investments headed their way, enough to actually influence Chile’s stock market index. Additionally, this stock market success and positive word-of-mouth could lead to investments for other Chilean businesses as well.

In addition to foreign investment, the wine industry can also help augment Chile’s burgeoning tourism industry. Recent tourism reports project a growth for Chile’s tourism industry, despite an initial decrease in contribution to their GDP. So where does wine fit in? Although Chile already has a reputation for producing quality wines, it never hurts to get the word out to more people. Chile has been quietly improving the dining and lodging in its “Wine Country,” and people are noticing. Eventually, Chile hopes that its wine industry can be a major draw for wealthy visitors, and help augment its retail and tourism industries, which comprise nearly ten percent of its GDP.

Featured Resources

Chile: Doing Business in Chile
Put forth by the World Bank, Doing Business in Chile highlights rankings across the years of various aspects of small business. These include Ease of: Starting a Business, Employing Workers, Registering Property, Getting Credit, Protecting Investors, Paying Taxes, and Trading Across Borders. In addition to the overall rankings, the site also provides an in-depth ranking analysis of each category.

Chile: U.S. Commercial Service Guides
Put forth by the U.S. Commercial Service, the site provides information and services with respect to doing business in Chile. Included is information by Industry Sector, as well as Chilean Business Services Providers. Services and products range from Finding a Chilean Trade/Business Partner, Trade Shows, Exhibitions and Fairs, and Consulting and Advocacy.

Featured Academy

Doing Business in Latin America
The Latin America module provides one with an understanding of: the enormous potential for doing business in Latin America, as well as the barriers to conducting business there; the history and importance of Mercosur to business in this region; the cultural environment; steps taken to improve the economic well-being of this region; techniques, tactics, and tips to help when negotiating in Latin America; and sale or purchase expectations when making a business trip. Also included is a case study on Central America and the Caribbean islands.
Category: Online Course Modules

Spanish: BBC Languages Spanish
Provided by the BBC, this resource for learning Spanish provides videos, snapshots, activities, and phrases that people in sales, hotel/catering, travel/tourism, and engineering use in their everyday work lives. Each situation is taught using images and sound bites of real people conversing. Audio needs Real Player to function.
Category: Language Guides

globalEDGE Business Review

"Internationalizing Business Education"
By: Elvin C. Lashbrooke
Business education which was once dominated by U.S. and Canadian business schools is being localized. Scores of new business schools are cropping up around the globe, particularly in India, China, and South America. There are 11,823 institutions offering business degrees of which only 1,707 (14.4%) are in North America. Only 695 (less than 6%) of the 11,823 are accredited by one of the three major accrediting agencies, AACSB, EQUIS, or AMBA. Of the 695 accredited schools, 482 (69.4%) are in North America. This paper examines the importance of these statistics.

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