Transcript chile
CHILE Jeff Verber * Andrew Palmer * Nate Ramirez Carlee Shepherd * Becky Randall * Ben Davis Geography Geography • Southern South America, bordering the South Pacific Ocean, between Argentina and Peru • Slightly smaller than twice the size of Montana • 6,435 km of Coastline • Strategic location relative to sea lanes between Atlantic and Pacific Oceans (Strait of Magellan, Beagle Channel, Drake Passage); Atacama Desert is one of the world’s driest regions. Geography • Climate: Temperate; desert in the north; Mediterranean in central region; cool and damp in south. • Terrain: Low coastal mountains; fertile central valley; rugged Andes in the east. Geography • Natural resources: Copper, timber, iron ore, nitrates, precious metals, molybdenum, hydropower. Geography • Natural hazards: severe earthquakes; active volcanism; tsunamis. Geography • Environmental current issues: Widespread deforestation and mining threaten natural resources; air pollution from industrial and vehicle emissions; water pollution from raw sewage. Government of Chile • Government Type: • Multiparty republic with a presidential system • President: • Ricardo Lagos • Capital: • Santiago Flag of Chile Two equal horizontal bands of white (top) and red; there is a blue square the same height as the white band at the hoist-side end of the white band; the square bears a white five-pointed star in the center representing a guide to progress and honor; blue symbolizes the sky, white is for the snow-covered Andes, and red stands for the blood spilled to achieve independence; design was influenced by the US flag Division of Chile • Administrative Divisions: • 13 regions (regiones, singular - region); Aisen del General Carlos Ibanez del Campo, Antofagasta, Araucania, Atacama, Bio-Bio, Coquimbo, Libertador General Bernardo O'Higgins, Los Lagos, Magallanes y de la Antartica Chilena, Maule, Region Metropolitana (Santiago), Tarapaca, Valparaiso Branches of Government • Legislative Branch • Congress • Judicial Branch • Supreme Court • Executive Branch • President Chile: Economy Chile's economy grew at the fastest pace in five months in June as manufacturers increased output to meet growing demand at home and surging sales abroad. Top Export • Prices of copper, the nation's top export, rose to a record high, pushing the Chilean peso to its strongest level against the dollar since Aug. 2000. The gains may give the government its largest budget surplus since at least 1987. • Chile, the world's biggest copper producer, is benefiting from demand for the metal in China, which buys more copper than any other nation. Economic Standing • Chile's economy will expand about 6 percent in 2005. The economy grew 6.1 percent in 2004, the fastest pace since 1997. • Current Exchange Rate: 1 Chilean peso = 0.00182232 U.S. dollars Economy: Overview • Chile has a market-oriented economy characterized by a high level of foreign trade • Growth in real GDP averaged 8% during the period 1991-1997, but fell to half that level in 1998 because of tight monetary policies implemented to keep the current account deficit in check Overview Cont. • A severe drought exacerbated the recession in 1999, reducing crop yields and causing hydroelectric shortfalls and rationing, and Chile experienced negative economic growth for the first time in more than 15 years. • By the end of 1999, exports and economic activity had begun to recover, and a return to strong growth in 2000. Economy Statistics • Household income or consumption by percentage share: lowest 10%: 1.2% highest 10%: 41.3% (1998) • Inflation rate (consumer prices): 3.4% (1999 est.) • Labor force: 5.8 million (1999 est.) • Labor force - by occupation: agriculture 14%, industry 27%, services 59% (1997 est.) • Unemployment rate: 9% (1999) Chilean Industries Wine Copper Fish-Meal Chilean Wine Industry Chilean Wine Industry • Chile is the 3rd largest wine exporter in the world. • The interest from foreign investors in Chile’s wine industry has increased the wine production and quality which has increased the country’s recognition. • Chilean wine has become a billion dollar export industry. Chilean Wine Industry • One of their biggest wineries Concha y Toro have become known throughout the world and have become globally competitive. • By, itself, Concha y Toro will sell 2 million cases of wine in the U.S. this year. • Chilean wine is considered to be of high quality at extremely reasonable prices. Chilean Copper Industry Chilean Copper Industry • Chile’s copper industry is the lifeblood of its economy. • Chile is the world leader in copper production. • Chile’s copper industry is so important to their economy that every one cent fluctuation in the commodity’s price in the international market is either a loss or a gain of $100 million for the Chilean Government. Chilean Copper Industry • Chile produces around 3,115,000 metric tons per year of equivalent fine copper, which is roughly 30% of world copper consumption. • Copper is used for things such as building wire, plumbing and heat, automotive, electrical utilities, refrigeration and air conditioning, factory equipment, electronics as well as many other things. Chilean Fish-Meal Industry Chilean Fish-Meal Industry • Fish meal is the clean, dried, ground tissue of undecomposed whole fish or fish cuttings, either or both, with or without the extraction of part of the oil. • Chile is one of the biggest producers and exporters of fish-meal in the world. • Total production amounts to over 1.2 million tons annually, and it accounts for more than 4% of the country’s total exports. The People In Chile FACTS • Language = Spanish • Population = 15.8 million • Labor force = 5.8 million • Unemployment = 8.1% • Life expectancy = 75 yrs. • Not racial, but strong relation between status and lightness of skin • No longer follow traditional gender roles • Divorce is illegal Geert Hofstede - Cultural Dimensions • 86 – Uncertainty Avoidance • Low level of tolerance for uncertainty • 63 – Power Distance • A small inequality between power & wealth allowed to grow • 28 – Masculinity • Low level of differentiation & discrimination between genders • 23 – Individualism • Society is collectivist, commitment to a group (family) United States VS. Chile • Power Distance • US = 46 Chile = 86 • Individualism • US = 40 Chile = 63 • Masculinity • US = 62 Chile = 28 • Uncertainty Avoidance • US = 91 Chile = 23 Education Age 6-14 is free compulsory education • Higher education requires tuition, but the government provides scholarships and loans to low income families • Higher education focuses on; • General, agricultural, technical, art or home economics Business • Business hours are 9am – 5pm with a two hour lunch Monday – Friday • Punctuality is expected from visitors, but expect locals to be 15 min. late • Business relations but build friendship and trust first, moves at a slow pace • Chileans enjoy work, but family comes first (no weekends or overtime) • Use titles on business cards & in speech Business Appearance & Customs • Converse in close proximity • Maintain eye contact and don’t yawn • Men wear dark suits, a light shirt and conservative tie • Women should wear suits and heels, nothing flashy