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

Globetrotter Seminar Chile

I thought it was a hot spice

Where in the World is Chile?

Are they all as weird as Tomas?

Who lives there?

From Wine to Café con Piernas

What Chileans do?

When? Where? What?

I want to go to Chile Why people Chile

We´ll see…

Dominican Republic Czech Republic Cuba Liberia Puerto Rico Panama Paraguay Russia Chile

Flag Chile’s Flag

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, rainy & cold winters

Lake area

Rainy and very green. Warm summers

Patagonia

Cooler, lower vegetation. Drier in the south

Central area Southern area High Low High Low Summer: 86° 60º 82º 50º Winter: 70º 34º 63º 26º

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?

I thought it was a hot spice

Where in the World is Chile?

Are they all as weird as Tomas?

Who lives there?

Chilean Demography

Total Population: 16.2 million

Urban 86% Rural 14%

Catholic 70% Evangelical 15% Jehovah’s Witness 1%

Age structure

0-14 years: 24.1% 15-64 years: 67.4% <65 years: 8.5%

Religion

Rural 14% Urban 86%

Cultural Dimensions

Power Distance

Low Distance

• Greater equality between societal levels
• More stable cultural environment

High Power Distance

• Inequality of power and wealth
• Less powerful people accept and

expect that power is distributed unequally

Source: www.geert-hofstede.com

Chile Mexico India China USA Brazil France Japan World X

Cultural Dimensions

Individualism

Individualism

• Ties between individuals are loose
• Everyone is expected to look after

him/herself and immediate family

Source: www.geert-hofstede.com

World X Collectivism

• Families are strongly integrated,

including extended families

• They protect themselves with

unquestioning loyalty Chile Mexico India China USA Brazil France Japan

Cultural Dimensions

Masculinity

Masculinity

• Women in masculine countries are

somewhat assertive and competitive, but not as much as men.

• Higher degree of gender differentiation of

roles.

Source: www.geert-hofstede.com

World X Femininity

• Women in feminine countries have the

same modest, caring values as the men

• Low level of differentiation and

discrimination between genders Chile Mexico India China USA Brazil France Japan

Cultural Dimensions

Uncertainty Avoidance

Chile Mexico India China USA Brazil France Japan World X Uncertainty Acceptance

• More tolerant to different opinions
• Try to have fewer rules
• Take more risks

Uncertainty Avoidance

• Prefer low risk, structured situations
• Have more laws, rules, etc

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?

I thought it was a hot spice

Where in the World is Chile?

Are they all as weird as Tomas?

Who lives there?

From Wine to Café con Piernas

What Chileans do?

• Agriculture

5.1 0% Services 45.20% Industry 49.80%

Breakdown of the Production Structure

Gross Domestic Product

• 2.0%

0.0% 2.0% 4.0% 6.0% 8.0% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year

GDP Growth Evolution

Billions of US$ USA China Brazil India Argentina Chile 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

Asian Crisis

Chilean Trade Balance

Chilean Trade Balance (Millions of US$)

10,000 20,000 30,000 40,000 50,000 60,000 70,000 1990 2000 2001 2002 2003 2004 2005 2006

Exports Imports Balance

Exports by Region/Country

UE 26% Japan 12% China 10% Mercosur 6% Mexico 4% Other 21% South Korea 6% USA 15%

• !"#

Chile has signed 16 Trade Agreements whose implementation entail more than 50 countries...

#

• $$

Real Import Duties

1,9 8,8 9,4 10 2,1 2,9 4,8 5,7 7,3 6,4

2 4 6 8 10 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 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%

Chilean Main Imports

1 2 3 4 5 6 7 8 9 10

Bangladesh Paraguay Russia Argentina M exico Thailand Italy Uruguay Chile USA Canada Australia Singapore Iceland

Chile shows up as one of the less corrupt nations

• Are Chileans corrupt?

Highly corrupt Highly clean http://www.transparency.org/

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

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

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/

Why do business in Chile and from Chile

I thought it was a hot spice

Where in the World is Chile?

Are they all as weird as Tomas?

Who lives there?

From Wine to Café con Piernas

What Chileans do?

When? Where? What?

I want to go to Chile

• 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

From surfing to flyfishing

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

$.7 - $1.25 Grocery Store Bar/Restaurant $2 - $4 $2.5 - $6 (bottle) $4 - $6 (glass with Coke-Piscola) $.5 - $1 $1.5 - $2

(Refill is very uncommon) PISCO

Cuánto cuesta in Chile?

$2-2.5 (~$5 meal) $1 - $1.5 kilo $6 - $9

Marraqueta Bistec a lo pobre

$3 - $4 kilo

(4 – 6 Paltas)

Palta

Cuánto cuesta in Chile?

~$.70/ride

You need this card to use the buses and Metro

Micro Metro

~$.80/ride

Cuánto cuesta in Chile?

I thought it was a hot spice

Where in the World is Chile?

Are they all as weird as Tomas?

Who lives there?

From Wine to Café con Piernas

What Chileans do?

When? Where? What?

I want to go to Chile Why people Chile

We´ll see…

¡Gracias!

Globetrotter Seminar Chile