International Product Exercise
Cierra Page, Rachel Riddle, Jeff Belback, Caron McCowin, Errol Jackson
When our group picked Chile and Whole Foods for this international product exercise, I
don’t think any of us knew what we were getting ourselves into.
Luckily Chile is a growing
country and many developments between the United States and Chile have occurred within the
last ten years.
Chile’s exports have grown and Chile has become a remarkable exporting country
despite its size.
However, the United States has also benefited from trade agreements made with
In talking about the trade relationship between the United States and Chile it is necessary
to focus on Chile’s exports, imports, foreign direct investments made in both countries, and the
tariff structure and trade agreements between both countries.
Chile’s economy has become a model for its neighboring countries because of its success
in exports (Economy and Trade: Open for Business 1).
Seventy-six percent of Chilean trade
conducted with over twenty-five countries accounts for eighty-seven percent of the world’s gross
domestic product (Economy and Trade: Open for Business 1).
This is a huge success for a
country that diversified its exports a little over thirty years ago (USDA Economic Research
Service Report 1).
Chile has trade agreements with many countries including: Bolivia, Brunei Darussalam,
Canada, Central America, China, Colombia, Cuba, Ecuador, the European Union, Iceland, India,
Liechtenstein, Mercosur, Mexico, New Zealand, Norway, Peru, Singapore, South Korea,
Switzerland, the United States, and Venezuela (Economy and Trade: Open for Business 1).
relatively new development in Chile’s trade agreements is the Free Trade Agreement with Japan
signed in March two thousand seven (Economy and Trade: Open for Business 1).
these agreements and its location, Chile serves over 3.8 billion consumers all around the world
(Economy and Trade: Open for Business 1).
Diversity is a key ingredient to Chile’s export success.
The Chilean export economy is so
well respected that the Economist Intelligence Unit ranked Chile number one Latin American
country to do business in for two thousand five through two thousand nine (Economy and Trade:
Open for Business 1).
In two thousand six, over five-thousand nine-hundred sixty-nine companies exported
five-thousand two-hundred and four different product lines to one-hundred and eighty-one
different markets all over the world (Economy and Trade: Open for Business 1).
“Chilean exports to the United States in two-thousand and four included ninety four
million in copper cathodes, twenty-four million in unrefined copper, thirty five thousand forty
eight million for oil for fuel testing under twenty five degrees, twenty four million in fruits such
as cranberries, blueberries, cherries and other fruits, and ten million in other molybdenum ores
and concentrates, not roasted (The U.S.-Chile Free Trade Agreement: An Early Record of