Blazing the way towards freer commerce with more dynamic economies, Chile and Peru arepaving the way for the Latin American penetration of the Asian markets, and the welcoming of important imported goods from the East.
With its unique mix of theory, historical discussion, case studies, and contemporary analysis and prospection, this bookoffersa comprehensive look atthe business environment in Chile and Peru. It examines how data analytics will affect the management of businesses in these two countries and how they can close the innovation gap. It also investigates the effects of past and recent corruption scandals on economic development.
The book provides a solid grounding on the historical, economic, social, and political impacts of trade and business in this region and identifiesthe key drivers of Latin American economic growth and development. Further, the authorslook forward to the rising trends that outline the futureof business and commerce between these two prospering economies, the rest of Latin America, and the world.
This book is aimed at scholars and researchers who seek to learn more about the changing focus and interests of Latin America, the shift away from the Atlantic economies towards the Pacific powerhouses, and the implications and opportunities this poses for American business interests.
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Yes, you can access Doing Business in Chile and Peru by John E. Spillan,Mohammad Nakibur Rahman in PDF and/or ePUB format, as well as other popular books in Business & International Business. We have over one million books available in our catalogue for you to explore.
Over the last decade, South America has experienced both good and bad political economies among its members. A couple of bad examples relate to the Odebrecht construction company scandal. Grupo Odebrecht is the regionās largest construction conglomerate. Its business includes major projects throughout Latin America. This company is heavily involved in the Operacao Lava Jato, or Brazilās major corruption probe associated with the huge oil company named Petrobras. Odebrecht paid lots of bribes to politicians in order to get big contracts with Petrobras (Gallas 2019). This corrupt activity has created significant turbulence among Brazilian politicians causing economic stagnation and has spread to other countries causing resignations, causing economic stagnation, and has spread to other countries such as Peru. Peru has had its own turbulence. Its former President Pedro Pablo Kuczynski was caught in a bribery scheme which caused him to resign. This was is in the midst of the efforts among the Peruvian progressives who want to make improvements and quality of life for its people better. Even in the midst of these unpopular issues occurring, the Peruvian people and business operators have been able to successfully achieve many of their economic goals.
The political and economic situation in Venezuela has become a colossal problem that has imposed huge suffering on millions of Venezuelans forcing them to migrate to bordering countries and outrightly leave for a better life outside of Venezuela. Even, Argentina, a country thought to be economically strong and progressive has become a victim of bad public financial policy causing it to request a 57-billion-dollar loan from the International Monetary Fund (IMF). President Macri, the President of Argentina, has been unable to make progress on reviving the economy (Gillespie and Doll 2018). Even with all of this turmoil, Chile and Peru have become stars among the continentās 12 countries. Over the last decade and a half, both Chile and Peru have outclassed all of their peers in economic development. Because of their free market-oriented policies, both countries have been outperforming expectations. This has attracted good, solid foreign direct investment (FDI) from around the world, and ultimately has improved the quality of life for many of its citizens (www.ābbc.ācom, Odebrecht Case, 2017).
1.2 Background
Throughout the world there are regions that have strong and weak economies. Many have an array of business conditions and are of interest to many investors. Latin America is unique in that the potential business opportunities are significant. While Latin America has had its economic ups and downs, some countries in this region have continually had their economic policies in the right direction. Chile and Peru are two of the stars in Latin America. They have shown that with stable politics and well thought out economic policies, economic growth and development can become a reality. Over the last two decades, both Chile and Peru have demonstrated the capability to achieve economic success and attract investment in both inward and outward FDI. Both Chile and Peru are good investment opportunities and provide both the infrastructure and the business management talent to make the investment work successfully.
One way to understand Chile and Peru is to examine their geography. The next section will provide a map and a summary of each countryās highlights.
1.3 Where are Chile and Peru
1.3.1 Chile
Chile is a slim, long shaped country located along the Pacific Ocean in the southwestern part of South America (Fig. 1.1). As the map presents, Chile extends into the Punta Arena region at the Tierra del Fuego area near the South Atlantic Ocean. Because of its deep southern position on the globe, it has seasons just the opposite of those in North America or many other parts of Latin America. The northern part of Chile is covered with the Atacama area or desert while the south is suitable for agriculture and vineyards which produce large amounts of wine for export. Because Chile has such a long Pacific Ocean coastline it is resourceful in seaport availability and marine life business opportunities. The seaports provide huge logistic advantages for both import and export activities.
Fig. 1.1
Map of Chile
(Source CIAāThe World Factbook [2018])
Fig. 1.2
Map of Peru
(Source CIAāThe World Factbook [2018])
1.3.2 Peru
Peru has a similar coastline as does Chile (Fig. 1.2). It appears that Peruās geographic dimensions are much broader and larger than that of Chile. Peru is one of the largest countries in South America. It is noted for its famous Macchu Picchu ruins located in the highlands of the Andes. Its climate varies from the very cool Andes mountainsā weather to the hot Amazon Jungle region of Tingo Maria and Aucayacu. In the central coastal region or Lima, the big city area, there is a combination of cool and warm weather depending on the time of the year one is traveling in Peru. As does Chile, Peru has a very active and resourceful coastline that allows for busy seaports along the coast. While business activity is full of life all over the country, the coastline provides seaports that facilitate the easy movement of imports and exports or trade for Peruvian businesses.
1.4 The Organization of the Book
This book contains nine chapters, which comprehensively introduce and discuss the contemporary issues and ideas that are germane to the conduct of Doing Business in Latin America in the twenty-first century. The book is designed to be accessible and practical, with an emphasis on useful and applicable information. To this end, each topic is introduced with an overview, which helps to give the reader a sense of direction for what is in the chapter. Separate cases are introduced at the end of each chapter to illustrate the concepts presented in the chapter. The following outline of each chapter will show the reader what to expect and how each chapter is linked to the main theme of Doing Business in Latin America.
Chapter 1āIntroductionāThis chapter introduces Chile and Peru as important countries that offer major opportunities for business development. Close to 50 million people live in this area of the world, and account for a large segment of purchasing, economic, and political power in Latin America (Index Mundi 2018). Both countries have geographical attributes that allow them easy access to supply chain routes (i.e. long coastlines) and large undeveloped areas that can be converted to very productive areas with the proper investment of resources.
Chapter 2āCurrent Business EnvironmentāThis chapter sets forth the current business situations and trends in Chile and Peru. Presently, both of these countries continue to offer factors of production that are generally easily obtainable. Economic growth continues and is fostered by entrepreneurs who are interested in taking advantage of the attractive business environment that exist in these countries. Chile has been the economic showcase of Latin America for over two decades. Recently Peru has demonstrated great business investment opportunities.
Chapter 3āHistorical Perspective on Doing Business in Chile and PeruāThis chapter on the history of doing business in Chile and Peru is meant to ground the reader on various events that have helped shape Chile and Peru in general and ultimately how they do business. The chapter outlines and discusses the infrastructure of both countries and how this factor affects the conduct of business.
Chapter 4āCultural Issues Affecting Business Activity Chile and PeruāThis chapter presents a discussion of how the diversity and sameness of cultures have an impact on the economic, political, and social activities in both countries. Because of the ethnic diversity in this region, prospective business investors must take into consideration how the culture of each country can affect the conduct of business. It is a critical variable that business people and investors need to be fully aware of.
Chapter 5āEconomic Climate touches upon long-term economic condition prevailing in the economy and its predictable patterns of growth, decline, potential, and movement. The term explains how generally countries economic condition varies widely. This chapter sheds more light on the economic climate of Chile and Peru particularly monetary, fiscal, and commercial systems.
Chapter 6āLatin America has been changing rapidly and is connected to the international community even more. Despite favorable macroeconomic conditions, doing business in Chile and Peru has always been a challenge due to unique negotiation pattern. This chapter sheds more light on investment in new ventures particularly business start-up financing alternatives, exchange rates, projecting cash flows, risk analysis, and financing alternatives. This chapter also discusses supply chain management issue, physical infrastructure, and issues related to sweatshops, bribery, and child labor.
Chapter 7āEstablishing Businesses in Chile and PeruāThis chapter discusses the main paths for establishing a business in Chile or Peru. It outlines the market challenges in each countryās markets, their logistical infrastructure and how that variable has an impact on establishing a business, how negotiations are conducted in this region, and what are the perceived corporate responsibilities among companies doing business in these countries. Finally, there is a discussion of how corruption in these countries affect the establishment of business in Chile and Peru.
