Globetrotter Seminar Chile Who lives there? Are they all as weird - PowerPoint PPT Presentation

Globetrotter Seminar Chile

Who lives there? Are they all as weird as Tomas? Where in the What Chileans do? From Wine to World is Chile? Café con Piernas I thought it was a hot spice I want to go to Chile When? Where? What? Why people Chile We´ll see…

Flag Chile’s Flag Paraguay Chile Panama Russia Liberia Puerto Rico Czech Republic Cuba Dominican Republic

Where in the World is Chile? Chile’s length from Arica to Punta Arenas: 2670 miles 4300 km

How do ‘long and narrow’ shape Chile’s climate? Desert Very, very dry. Hot days, cold nights Central ������������ Dry & warm summers, Central area Southern area �������� rainy & cold winters High Low High Low Summer: 86° 60º 82º 50º Lake area Winter: 70º 34º 63º 26º Rainy and very green. Warm summers Patagonia Cooler, lower vegetation. Drier in the south

How do ‘long and narrow’ shape Chile’s climate? Desert Central Lake area Patagonia

How do ‘long and narrow’ shape Chile’s climate? Desert Central Lake area Patagonia

How do ‘long and narrow’ shape Chile’s climate? Desert Central Lake area Patagonia

How do ‘long and narrow’ shape Chile’s climate? Desert Central Lake area Patagonia

Geography Quiz • When is fall time in Chile? • What’s the name of the driest desert in the world? • What’s the name of the mountain chain that goes all the way from Venezuela to the Patagonia? • Which is the southernmost city of the world? • Which is the most important Chilean sea port?

Who lives there? Are they all as weird as Tomas? Where in the World is Chile? I thought it was a hot spice

Chilean Demography Total Population: 16.2 million Rural Rural Age structure 14% 14% 15-64 years: 67.4% <65 years: 8.5% Urban Urban 86% 86% 0-14 years: 24.1% Religion Catholic 70% Evangelical 15% Jehovah’s Witness 1%

Cultural Dimensions Power Distance Low Distance High Power Distance - Greater equality between societal levels - Inequality of power and wealth - More stable cultural environment - Less powerful people accept and expect that power is distributed unequally USA Japan Brazil China Chile World X France India Mexico Source: www.geert-hofstede.com

Cultural Dimensions Individualism Collectivism Individualism - Families are strongly integrated, - Ties between individuals are loose including extended families - Everyone is expected to look after - They protect themselves with him/herself and immediate family unquestioning loyalty Japan Mexico Brazil USA Chile India World X China France Source: www.geert-hofstede.com

Cultural Dimensions Masculinity Femininity Masculinity - Women in feminine countries have the - Women in masculine countries are same modest, caring values as the men somewhat assertive and competitive, but not - Low level of differentiation and as much as men. discrimination between genders - Higher degree of gender differentiation of roles. Japan Chile France Brazil India China World X USA Mexico Source: www.geert-hofstede.com

Cultural Dimensions Uncertainty Avoidance Uncertainty Avoidance Uncertainty Acceptance - Prefer low risk, structured situations - More tolerant to different opinions - Try to have fewer rules - Have more laws, rules, etc - Take more risks Mexico Chile China USA Brazil Japan World X India France Source: www.geert-hofstede.com

Chilean People Quiz • Strict punctuality is something that characterizes Chileans? • Chileans are considered more liberal or conservatives compared to Americans? • An email from a Chilean is likely to be succinct and straight to the point or long and detailed?

Who lives there? Are they all as weird as Tomas? Where in the What Chileans do? From Wine to World is Chile? Café con Piernas I thought it was a hot spice

Breakdown of the Production Structure ������ ������������� ������� ���� ��� ����������� ������� �������� ������������� ������������ �������� ���� � �� ����������� ������ ��������������� �������� Agriculture ������� ������������� 5.1 0% ��� ��� ����������� Services ������� ������ 45.20% Industry 49.80%

Gross Domestic Product USA China Brazil India Argentina Chile Billions of US$ GDP 13,160 2,527 967 805 210 100 GDP (PPP) 13,060 10,210 1,655 4,164 608 203 GDP/Capita (PPP) 43,800 7,800 8,800 3,800 15,200 12,600 GDP Growth Evolution 8.0% 6.0% Asian Crisis 4.0% 2.0% 0.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 -2.0% Year

Chilean Trade Balance Chilean Trade Balance (Millions of US$) 70,000 60,000 50,000 40,000 Exports 30,000 Imports 20,000 Balance 10,000 0 1990 2000 2001 2002 2003 2004 2005 2006 Exports by Region/Country Other UE 21% 26% Mexico 4% Mercosur 6% USA 15% South Korea China Japan 6% 10% 12%

Chile has signed 16 Trade Agreements whose implementation entail more than 50 countries... ��������� ���������������� � ������� !����"��#�� � ������� ������������#� ��������� �$$��������� � ��������

Real Import Duties %�����$�%��������������$�&'������� ������(�$���������#����$� (���#(�#� 10 10 9,4 ����� 8,8 ������� 8 ����� 7,3 ��� 6,4 5,7 6 4,8 4 2,9 2,1 2 1,9 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Chilean Main Exports Chilean Main Exports US$ million Part. % Copper 17,378 44.0% Molybdenum 3,261 8.2% Salmon 1,341 3.4% Cellulose 1,334 3.4% Wine 869 2.2% Wood 714 1.8% Grapes 870 2.2% Other 13,769 34.8%

Chilean Main Imports Chilean Main Exports US$ million Part. % Oil 8,030 23.0% Vehicles 3,491 10.0% Machinery and electronics 3,142 9.0% Plastics 1,397 4.0% Iron 698 2.0% Other 17,806 51.0%

Are Chileans corrupt? 0 1 2 3 4 5 6 7 8 9 10 Highly corrupt Highly clean Iceland Singapore Australia Canada USA Chile Uruguay Italy ���������� ���������� �� � �� �� Thailand � M exico Chile shows up as one of the Argentina less corrupt nations Russia Paraguay Bangladesh http://www.transparency.org/

Why do business in Chile and from Chile Ease of entry Yes No • Leverageable competitive advantage? • Similar culture? • Efficiency + availability channel infrastructure? • Low red tape? • Low political risk? Rule of thumb: High ease of entry requires 3 yeas Strategic importance Yes No • Large source of sales/profit? • Strongly growing market? • Regional stepping stone? • Key/home market of global competitors? • Key/home market of global customers? Rule of thumb: High strategic importance requires 3 yeas Country Scorecard: Which countries to enter; Prof. JB Steenkamp - Global Marketing Class

Why do business in Chile and from Chile • Springboard from which to do business around Latin America More info in http://www.foreigninvestment.cl/

Who lives there? Are they all as weird as Tomas? Where in the What Chileans do? From Wine to World is Chile? Café con Piernas I thought it was a hot spice I want to go to Chile When? Where? What?

From surfing to flyfishing • When? November - March • Major Attractions - Valle de la Luna - Valle del Elqui - La Serena - Isla de Pascua - Valparaíso - Santiago - Santa Cruz - Pucón - Puerto Montt/Chiloé - Futaleufú - Torres del Paine

Ski/Snowboard • When? June – August • Where? - 3 major ski centers 1 hour from Santiago - Other smaller centers in the south • How much? ~$40 day ticket ~$150-$200/hotel room

Cuánto cuesta in Chile? Bar/Restaurant Grocery Store $.7 - $1.25 $2 - $4 $4 - $6 $2.5 - $6 PISCO (glass with (bottle) Coke-Piscola) $.5 - $1 $1.5 - $2 (Refill is very uncommon)

Cuánto cuesta in Chile? $3 - $4 kilo $2-2.5 (~$5 meal) (4 – 6 Paltas) Palta $1 - $1.5 kilo $6 - $9 Marraqueta Bistec a lo pobre

Cuánto cuesta in Chile? ~$.70/ride You need this Micro card to use the buses and Metro ~$.80/ride Metro

Who lives there? Are they all as weird as Tomas? Where in the What Chileans do? From Wine to World is Chile? Café con Piernas I thought it was a hot spice I want to go to Chile When? Where? What? Why people Chile We´ll see…

Globetrotter Seminar Chile ¡Gracias!