Free Essay About Country Business Profile Project

1. Complete this fileThis is the instruction file for you to use to prepare your data for posting to the web form. Please complete your project using this file (save in your favorite word processor file format for convenience). Complete each of the sections, as outlined below:Edit this file off-line several times, before you post to our on-line input form. edit for content – ensure that each section has a strong paragraph. A paragraph is considered strong if it contains a minimum 125 words, and >750 characters. Please list your source URLs (in parentheses) if requested.

Complete (with details) all of the following sections:

Country: Chile (Country selected, can’t change)
Economy
GDP (US$ - add comma separators): $335,4 billion
GDP (PPP - add comma separators): $19,100
GDP Growth (% - enter as 00.00): 4.4%
Inflation rate (% - enter as 00.00): 1.7%

Unemployment Rate (% - enter as 00.00): 6%

Summary Analysis
Summarize what these economic data mean to you if you are considering doing business there. Give a strong paragraph.
This country’s inflation rate indicates a stable economy. As the inflation demarks the level of growth of prices for goods and services, compared with the consumer’s purchasing power, an inflation rate of 1.7% along a GDP per capita of $19,100 per annum creates good internationalization conditions. The fact that Chile’s GDP marked an annual growth of 4.4% in 2013, compared to a 5.6% increase in 2012 indicates a visible slowdown of the economic efficiency of the country, however, not a concerning factor for which one should consider not doing business in the country. The national GDP is still on a rising trend, and there should be considered other aspects, such as the social or political context to explain this slower increase of the GDP from one year to another. The country’s unemployment rate of 6% indicates that 95% of the individuals who have the right to work in Chile are engaged in lucrative activities, hence having the economic power to be considered as potential consumers. Chile’s economic climate provides prosperous opportunities that could be capitalized while internationalizing business in this South American country.
List your source URLs (in parentheses): (http://www.indexmundi.com/chile/economy_profile.html)
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Political System

Description – Give a strong paragraph. List your source URLs (in parentheses):
Chile’s politics is often associated with a dictatorship state, authoritarianism leading model or a military government. While its history was marked by all these political manifestations, Chile is currently a developing country due to the political, economic and social reforms meant to encourage economic development and to increase the wellbeing of the population. The reforms of the military government ruled by Pinochet up into 1990, who promoted authoritarian practices, set the country on a tough but prosperous path of economic enhancement. Once with Chile’s entrance in the democratization era, the economic developments continued, reaching stability. However, the cost of this stability was paid by the lower class, which supported the upheaval of the upper and middle classes through its contribution, not benefiting of the opportunities provided by the country’s industrialization, demographic changes or education. The profiling of a strong middleclass is a solid argument for choosing Chile as the international destination for doing business. However, the discrepancy between the middle/upper classes and the lower classes suggests social inequalities that might outburst in local manifestations and political tensions.
(http://countrystudies.us/chile/84.htm
https://books.google.ro/books?id=KCPvQsHaKH4C&pg=PA338&dq=political+system+in+chile&hl=en&sa=X&ei=5TQuVfjZH4G5sAGw8IHACA&ved=0CDAQ6wEwAw#v=onepage&q=political%20system%20in%20chile&f=false)
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Key Industries

Description - Give a strong paragraph. List your source URLs (in parentheses):
Chile’s prevailing industries are cooper, lithium and other minerals, followed by alimentation, agricultural primary materials, forestry, fishery, irons, steel, wood products, textiles, transport equipment or cement. The strength of the local industry and their powerful penetration across the Chilean society might impose high entry barriers in the country’s main industries. Nevertheless, as the country is open for economic exchange and globalization, foreign businesses could only enhance the local competitiveness and offer alternatives to the natural resources that support the local industries. In addition, the abundance of the raw agricultural produces could also represent an opportunity for foreign businesses to develop their supply chain locally, reducing the transportation costs while fostering good partnership relationships through the encouragement of the local industries.
(http://www.nationsencyclopedia.com/economies/Americas/Chile-INDUSTRY.html
http://www.indexmundi.com/chile/industries.html)
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Business Appointments

Description - Punctuality, Business cards, and business meeting protocol. Give a strong paragraph. List your source URLs (in parentheses):
Although the Chilean managers put a significant emphasis on their counterparts’ punctuality, the local business habit is to let the visitors wait, even if the managers are busy or not, for indicating the importance of the company. The more important the visitors are the less they wait. During the meeting the business partners shake hands at the initial meeting, followed by kisses and hugs when the relationships become closer. After the handshake as the first point of direct contact business cards are exchanged and small talk is encouraged, focusing on the personal background of the business participants, showing interest in their persons and not directly in the companies that they represent. This etiquette describes the fact that the business relations in Chile are carried on and enhanced by people and their relationships and not by companies. The development of personal relationships with businessmen from Chile can create the advantage of developing solid networks that could further lead to reaching the business objectives through mutual help.
(http://www.southamerica.cl/Chile/Business.htm
http://www.leadershipcrossroads.com/mat/cou/Chile.pdf)
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Negotiating

Go to: http://www.globalnegotiationresources.com/resources/countries/
OR http://instruction2.mtsac.edu/rjagodka/BUSM_51_Project/Negotiating.htm
The Chilean business promotes an official negotiation style, with negotiation teams meeting and having equal membership in terms of number, seniority and business roles. The Chilean negotiation imposes diplomacy, respect and flexibility, which implies meeting the business partners as individuals and not only as businessmen, which may be time – consuming, but effective, as it creates business bond based on trust that further leads to long term benefits. While the negotiation pace can be slow, signs of rushing can be perceived as weaknesses and might hamper the bargaining process. The negotiation style in Chile is cooperative, as it enhances the compromise for reaching agreements.

Bargaining - Give a strong paragraph:

Bargaining is not the Chileans favorite negotiation tactic, as they prefer reaching agreements rapidly for moving the negotiation process. They are reluctant to open, pressured and aggressive bargaining or manipulative practices such as “good cop, bad cop”, favoring he respectful discussions even if agreement are not reached. Business people in Chile value the social worth that agreements might generate, not solely the financial outcomes

Decision Making - Give a strong paragraph:

As a collective state, Chile values the group’s interest in the decision – making process and for this reason this process can have a slow pace, requiring the top management’s final word in finalizing the decisions. Nevertheless, the top managers consult with other parties for taking into consideration various group approaches, but they do not delegate. Personal feelings value more than the objective facts when making decisions and the patience of the business partners is appreciated.

Agreements (Contracts) - Give a strong paragraph:

Adaptation to the Chilean agreement/contracting protocol implies complying on the oral commitments, while nevertheless backing it up with written commitment, which can suffer various amendments until reaching the contract form. Before signing contracts, which contain various terms and conditions, it is recommended to ask local legal expertise and once the contract is signed, the Chilean business people are reluctant to accepting new changes. Hence, diplomacy, persistence and attentive analysis of the oral and written commitments are required, although the presence of an attorney in the agreement phase would be considered a sign of mistrust, damaging the business relationship.
(http://www.leadershipcrossroads.com/mat/cou/Chile.pdf)
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Business Dress

Description - Give a strong paragraph that covers both genders
Because public look is highly esteemed in Chile, business people adopt a formal dress code, with men wearing conservative suits with shirts, ties and jackets, and women wearing elegant and discreet office suits, made of pants or skirts. Big companies also require their secretaries and clerks to wear uniforms, creating an official working environment. The official international business code requires office attires for business people, as a sign of seriousness, competency ad professionalism and Chile is the adept of this style, favoring a similar “business dress language” with its potential foreign partners.
(http://www.southamerica.cl/Chile/Business.htm)
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Doing Business In Go to: http://doingbusiness.org

Top and worst rankings for the country - Give a strong paragraph:

Chile is worst ranked for the paying taxes topic and most highly ranked for its potential of resolving insolvency. There are 7 taxes that must be paid by businesses, totaling a 27,86 percentage of the tax rate from the profit, which still lays behind other developing countries. Ranking high in resolving the insolvencies delineates the country’s economic stability and the government’s interest in supporting the private sector.

Based on these data, would you consider doing business there? - Detailed paragraph:

The 27,86% taxable profit represents the country’s most negative economic topic, which is still not strong enough for stopping the foreign investments. The taxable percentage is less than in other developed or developing nations and this is actually a good reason for which I would consider Chile instead of other country for doing business. The country’s know-how on resolving the insolvency is another strength for which I would choose Chile as the destination of my business. Ranking highest at this economic topic in both 2014 and 2015 demonstrates low risk for the private sector and for the foreign investors alike. Knowing that I would have the government’s support in managing or avoiding insolvency is not a desiderate, but it does provide a comfort state at the thought that I could obtain advantages to continue my business in a new formula or avoid insolvency.
(http://www.doingbusiness.org/data/exploreeconomies/chile#resolving-insolvency)
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Conversation Topics

Description - Details on topics to cover and topics to avoid. Give a strong paragraph:
Encouraged conversation topics include talks and inquiries about one’s family and about the country’s natural resources, environment, sights or wines. Sports, culture, history or geography are other recommended topics for conversations. These topics are likely to enhance the local business people’s pride of their natural beauties and resources and to further advance the business relationships after breaking the ice with small but elegant talks. Any conversation topic that is likely to generate in disrespect for the Chilean communication partners should be avoided. Similarly, political topics such as the conflicts between Chile and Argentina are best not to be approached. Religion, ethnic group and social class talks, discussions about wars, human rights and political regimes are other topics that should be avoided, as they might cause distress for the Chilean conversation partners.
(http://www.southamerica.cl/Chile/Business.htm
http://www.leadershipcrossroads.com/mat/cou/Chile.pdf)
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Gift Giving

Description - Details on gift giving. Give a strong paragraph:
The business etiquette in Chile does not encourage gift giving until relationships become close and even after that point, expensive gift are considered a sign of attempted bribery. Otherwise, the Chilean culture accepts gift giving consisting in books, pens, small and elegant office items like card holder or drinks and such gifts are mostly appreciated when they are representative for one’s culture. As they receive gifts, Chileans open them immediately as a sign of their appreciation and friendship. It is best that gifts are accompanied by the business card of the sender. There are several gifts that should be avoided, besides the expensive ones, as they hold a local symbolist value. As such, the yellow roses and are considered a sign of worsening the relationships.
(http://www.executiveplanet.com/index.php?title=Chile:_Gift_Giving
http://mbjprotocol.com/wp-content/uploads/2012/03/CE-Chile.pdf)
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Works Cited

Chile: Gift Giving. Available at http://www.executiveplanet.com/index.php?title=Chile:_Gift_Giving. Accessed 15 April 2015. N.d. Online.
Doing Business in Chile. Available at http://www.southamerica.cl/Chile/Business.htm. Accessed 15 April 2015. N.d. Online.
Encyclopedia of the Nations. Chile – Industry. Available at http://www.nationsencyclopedia.com/economies/Americas/Chile-INDUSTRY.html. Accessed 15 April 2015. N.d. Online.
Government and Politics. Available at http://countrystudies.us/chile/84.htm. Accessed 15 April 2015. Online.
Index Mundi. Chile Economy Profile 2014. Available at http://mbjprotocol.com/wp-content/uploads/2012/03/CE-Chile.pdf. Accessed 15 April 2015. N.d. Online.
Negotiating International Business – Chile. Available at http://www.leadershipcrossroads.com/mat/cou/Chile.pdf. Accessed 15 April 2015. N.d. Online.
Petras, James, F. Politics and Social Forces in Chilean Development. London: University of California Press. Available at https://books.google.ro/books?id=KCPvQsHaKH4C&printsec=frontcover#v=onepage&q&f=false. Accessed 15 April 2015. Online.
World Bank Group. Doing Business in Chile. Available at http://www.doingbusiness.org/data/exploreeconomies/chile#resolving-insolvency. Accessed 15 April 2015. N.d. Online.
World Trade Center. Chile. Available at http://mbjprotocol.com/wp-content/uploads/2012/03/CE-Chile.pdf. Accessed 15 April 2015. N.d. Online.