CHILE

1. CHILE Chris Radtke Dennis Duarte Sean Berry Matt Owens

2. Geography & Climate • Five well defined regions • Different climate types • 6,435 km of coast line • Elevation 0m to 6,880m

3. Environment • Accelerated economic development • Environmental awareness

4. Natural Resources • 43% of the worlds copper

5. Mine Collapse • 2010 Copiapómining accident • 33 miners Trapped for 69 days

6. Natural Disasters • February 27, 2010 earthquake 8.8 • January 2, 2011 earthquake 7.1 • March 25, 2012 earthquake 6.7

7. Government • 1989 Christian Democrat Patricio Aylwin is elected president

8. Advantages for Foreign Business • Government policy seeks foreign investment • Tax system • Local business favor foreign investment • Foreign investors provide new field and work opportunities

9. Doing Business in Chile with Regards to Religion and Gender Section 2

10. Religion • Religion plays a crucial part in Chilean society when it comes to business. • With Roman Catholicsm making up over 73% of the population most national holidays are of a religious nature. • Religion has had great emphasis on such topics as abortion and divorce which was illegal up until 2004.

11. Religion • Knowing how big a role religion plays, a person should keep in mind important dates of religious importance in Chilean society. • Religious topics are a great piece of conversation to build rapport when conducting business. • When doing business holidays such as All Saints Day (celebrated as much as birthdays) when most memorialize loved ones passed on and have to be taken into consideration when making appointments and setting up meetings.

12. Religion • The celebration of Chilean independence in 1810 takes place on 18 September. It should also be taken into consideration when conducting business. Chileans go into the streets to celebrate with folk dances and national dishes. This is the country's most important secular celebration.

13. Gender Roles and Status • Women play just as big a part in the Chilean business community as they make up at least 37% of the workforce. • They hold positions such doctors, nurses, lawyers, business executives, and teachers to name just a few. • While they may not hold as many high up positions their influence is regarded as very high in many realms of Chilean life.

14. Other Gender Tips for Business • Men customarily wear dark blue or gray suit, a light shirt, and a conservative tie. Bright colors and flashy fashions are not suitable, nor is wearing anything on the lapel. Women should wear a suit and heels • Men should note that when a woman enters a room, the polite gesture is to rise and be prepared to shake her hand if she offers it. A seated woman, however, need not rise nor is she obliged to offer her hand. It also important that women are allowed to sit first.

15. Section 3 The People

16. Regional Subcultures • -Regional Subcultures • 85% of the population is Urban with a high concentration in the main city of Santiago. • Chile's subcultures are divided by proximity to Roman Catholic church and social class. • Parents tend to channel these subcultures into the schools that they pick for their children. • Chileans are more likely to affiliate themselves with people of similar occupations regardless of their religious identity or preference.

17. Greetings • - Greetings • Men will usually shake hands when greeting someone. • Women generally pat each other on the right forearm or shoulder. • Usually, Buenos Dias (Good Morning), Buenos Tardes (Good Afternoon), or Buenos Noches (Good Night) usually accompanies the first initiation of contact.

18. Greetings • Between friends and family things will relax and become more unreserved - men may embrace and energetically pat each other on the back whilst women will kiss once on the right cheek. • Like many South Americans, Chileans use both their maternal and paternal surnames. The father's surname is listed first and is the one used in conversation.  • If no title exists then simply use "Senor" (male) or "Senora" (female) followed by the surname.  • First names are to be used between close friends. You must wait until invited to move into a first name basis.

19. Business Language • Prior appointments are necessary at all times. • In business, punctuality should always be respected. Meetings should also always start and end on time. • Have business cards printed with English on one side and Spanish on the other • Business cards should be handed to everyone in a meeting except the secretary.

20. Business Language • Business entertaining should generally be done at hotels and restaurants. • Always engage in light conversation before starting business discussions. • Never serve wine with your left hand. Wines are a national treasure and should be treated with the utmost respect. • Proper table manners are important. •  Chileans do not bargain in either stores or street markets. It is illegal to sell something and not issue a receipt.

21. Negotiation Style • Chile's Culture is generally group oriented. • Business relationships are between people, not companies. • Spanish is the dominant language in business meetings with a bit of English. Some business professionals do speak English but Spanish is the preferred language. • Choose an intermediary to make the first initial contact between two companies. • The senior executive of your company should attend the first meeting. • It is better to negotiate with a team instead of a single individual. Because of the large emphasis on the collective, it reflects greatly on your company to do so.

22. Negotiation Style • Negotiating is generally a joint problem solving process. • Even when relationships are strong, Chilean counterparts are often reluctant to share information. • Avoid aggressiveness and open conflict at all costs. • Chileans are not very fond of bargaining or haggling. • Chileans often move very fast in their negotiations, unlike many of their Latin counterparts.Tough this is true, impatience can be seen as a sign of weakness. • Chileans are often very serious and straightforward negotiators. • There is a shared belief within Chilean culture with the concept of win-win. This should always be reciprocated when negotiating with them.

23. Business Cont. • Remember that in Chile, “people” are the only “business”… they should be treated as such!

24. Section 4 & 5

25. Technology Readiness • Technology and telecommunications are readily available and prominent. • Chile ranks 45th worldwide (out of 142) in technological readiness and 22nd in FDI and technology transfer

26. Great Infrastructure • 32nd in quality of overall infrastructure • Which is also number one in Latin America • Chile has a total of 37 airports and airfields serving 18 international airlines • Ports move 90% of the commercial exchange of the country. • Port operations include 10 state ports and 23 private ports.

27. Tariffs and Trade • Chile has a policy of free trade with no barriers. • LAIA (Latin American Integration Association) • MERCOSUR

28. Ethics and Corruption • Chile ranks 22nd worldwide according to the 2011 Corruption Perceptions Index published by Transparency International. • This ranking signifies the 22nd least corrupt in the world. • Generally, Chilean businesspeople are conservative thinkers and take business ethics seriously. • Bribery is very seldom used and is not a commonly accepted practice.

29. Build Relationships!!! • Chilean culture is very group-oriented and building deep and lasting relationships is important. Personal contacts and networks are prerequisites for successful deals where the establishment of trust, loyalty and strong bonds facilitates business operations in Chile. • The extended use of networks & connections • Personal relationships with colleagues are highly valued in Chile. • It is highly recommended to use every opportunity to socialize with your Chilean counterparts outside the office.

30. Management Practices • Chilean business is relatively hierarchical and managers are somewhat more autocratic than in many other countries. • Managers do not seek a consensus before making decisions. • Managers tell subordinates what they want done and how they expect them to perform the task. • Sometime paternalistic • Employees follow a manager’s instructions without comment, as it would be rude to challenge someone of a higher status. • Successful cross cultural management will rely on the individual’s interpersonal skills and ability to maintain cordial relationships with their subordinates. This can be as important as their technical knowledge.

31. Decision Making • Decisions are reached at the top of the company, often after seeking input from all the stakeholders. Since Chileans believe business should be "win-win" scenarios, they attempt to find solutions that are in the best interest of all concerned.