ARGENTINA, CHILE & BRAZIL

November 12th, 2008International Marketing 4704

Ms. Guerrero’s Example

Moment in History

Argentina 2001: Economic

Crisis

Chile 1973: Pinochet

overthrows government

CULTURAL & SOCIAL ELEMENTS

Cultural Elements

Argentina Chile

Language Spanish Spanish

English Use Occasionally Occasionally

Religion Roman Catholic Roman Catholic

Important Figure Jose San de Martin

Augusto Pinochet

Context High High

Business Customs

Argentina Chile

Greetings Handshake shows respect, kiss on cheek common between friends

Handshake is customary, kiss on cheek

Gift Giving Avoid personal gifts, Highly regard imported liquors

Expensive gifts seen as bribes, gifts from homeland when appropriate

Dress Important for good impression

Conservative, lots of jewelry makes you appear vein

Protocols Tough negotiators, relationships highly regarded, long days, Jan. and Feb. are summer months

Business done slowly, Jan. and Feb. are summer months

Family Life & Education

Argentina Chile Brazil U.S

Literacy Rate

97.2% 95.7% 88.6% 99%

Argentina Argentina has the best level of

education in Latin America 3.2% of the population attending

and graduating from university programs, a percentage that is 2nd highest in the world.

Chile Family respect and loyalty are

primary concerns Women have always had a higher

degree of independence in Chile than in any other Latin American country

ECONOMIC ELEMENTS

Economic Overview

Argentina Chile

Type of Economy Market-oriented Market-oriented

Level of Development

Upper-Middle Upper-Middle

Balance of Payments

Surplus Surplus

Trade Agreements

Mercosur Mercosur + others

Population

Argentina Chile Brazil U.S.

Population 40M 16M 196M 303M

Growth Rates

8.7% 5.1% 5.4% 2%

Density 14KM 21KM 22KM 31KM

Income

Argentina Chile Brazil U.S.

GDP (PPP) $526.4 billion

$232.8 billion $1.849 trillion

$13.78 trillion

Rate of Growth 8.7% 5.1% 5.4% 2%

Per capita PPP $13,100 $14,300 $9,500 $45,800

Distribution of Wealth

poor poor poor moderate

Natural Resources

Argentina1. Fertile plains of the pampas2. Lead3. Zinc

Chile1. Copper2. Timbre3. Iron Ore

Currency

Argentina Chile Brazil

Currency Argentine Peso Chilean Peso Real

Exchange Rate

$1 = 3.2195 peso

$1 = 611.75 peso

$1 = 1.85 real

Inflation Rates

Argentina

Chile

Labor Force

Argentina

Chile Brazil U.S.

Size of Working Population

16M 7M 99M 153M

Unemployment Rate 8.5% 7% 9.3% 4.6%

International Trade Statistics: Imports

International Trade Statistics: Exports

Foreign Direct Investments

Risk of Economic Crisis

Argentina Inconsistent economy Financial system not secure Fluctuations in economic stability

Chile Lucrative investment Full recovery from recession High foreign investment

POLITICAL & LEGAL ELEMENTS

Political Development

Argentina Chile Brazil

Politcal Ideology

CENTER-LEFT CENTER-LEFT CENTER-LEFT

Economic System

MARKET ORIENTED

MARKET ORIENTED

MARKET ORIENTED

Law System CIVIL LAW CIVIL LAW CIVIL LAW

Corruption HIGH LOW HIGH

Level of Political Risk

MEDIUM LOW/ABSENT LOW

Relationship with other countries

MERCOSURASSOCIATE

MERCOSUR , FULL APEC

MAIN INTERLOCUTOR

IN LATIN AMERICA

Political Overview

Index of Perception of Corruption

Ease of Doing Business

CONCLUSION

Take Away

Argentina and Chile have women presidents

In Argentina and Chile, Spanish is spoken but heavily accented making distinctively homogeneous

Chile is a role model of economic stability for all of Latin America and is the second fastest growing region after Asia

Argentina has the best level of education in Latin America

Corruption in Chile significantly lower than other Latin American countries

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THANK YOU!

QUESTIONS?