A very strong sense of belonging and most chileans

  • No School
  • AA 1
  • 32

This preview shows page 23 - 26 out of 32 pages.

a very strong sense of belonging and most Chileans will belong to small groups with the primary group being the family at home. The feeling that the group is more important than one’s self completely defines how the Chilean culture views life. SWOT Analysis When a business considers whether or not to conduct business internationally with another country, not only should a cultural dimension analysis be conducted. A SWOT Analysis should also be conducted. A SWOT Analysis looks at the Strengths, Weaknesses, Opportunities, and Threats of the area or country. The SWOT Analysis could be an economic analysis or even a political analysis. It may be important to look at the political risks and threats as it would be very unwise to begin business transactions with a nation that is constantly or currently in political turmoil. An economic and political SWOT Analysis of Chile has been conducted and will be listed below. The political points of consideration will be listed first in each section.
Image of page 23

Subscribe to view the full document.

GLOBAL BUSINESS CULTURAL ANALYSIS: CHILE 24 Strengths Active terrorist cells have not been found in Chile The underground leftist movement is almost completely over Serious offense crimes are low Governed by a democratic political system that is very stable Copper mining on an upswing Strong macroeconomic growth and stability due to fiscal policies Trade agreements and free market economy Competitive business costs for foreign investors Deregulation and privatization of utilities Taxes and labor costs are on the low end Weaknesses Reform is needed on the binomial electoral system that could cause political discourse Far-reaching policies and reforms are unlikely at this time Economy is vulnerable to external demand shocks on exports Importing dependence on oil and gas Political unrest in oil and gas countries External shocks could be amplified due to a lack of tertiary sectors in the economy Heavy dependence on natural gas Opportunities Peace has existed politically in Chile since the fall of General Pinochet’s dictatorship Transparency is important to the current government
Image of page 24
GLOBAL BUSINESS CULTURAL ANALYSIS: CHILE 25 Financial regulations placed on parties and campaigns Political stability with sound macroeconomic fundamentals Countercyclical spending to help economic growth Foreign investors get government support Transportation and mining industry provide opportunities for foreign investments Threats Income inequality among the poorest areas causing unrest Unrest among the indigenous people, specifically the Mapuche Inequality in regards to income External supply and demand changes that could destabilize the economy Poverty leading to social unrest Corruption is a slowly growing problem (Business Monitor, 2013, p. 7, 13 & 29).
Image of page 25

Subscribe to view the full document.

Image of page 26
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes