Chili: New Business

Index

Introduction......................................................................................................................................3

Culture..........................................................................................................................................3-4

Business Etiquette.........................................................................................................................4-5

Business Operations.....................................................................................................................5-6

Political Systems in Chile.............................................................................................................6-9

Business Law..............................................................................................................................9-10

Chilean Accounting Practices...................................................................................................10-12

Trade Issues..............................................................................................................................12-13

Globalization............................................................................................................................13-15

Financial Issues.........................................................................................................................15-16

Conclusion.....................................................................................................................................16

References................................................................................................................................17-18

Chile

Introduction

"In the beginning of time, God created the wonders of the world. When he was finished, however, he saw that he had many leftover pieces. He had parts of rivers and valleys, of oceans and lakes, of glaciers and deserts, of mountains and forests, and of meadows and hills. Rather than to let such beauty go to waste, God put them all together and cast them to the most remote corner of the earth. This is how Chile was born."- A Chilean Legend

Chile is an up and coming country in the global business world. This long skinny country is ideal for port trade. When a company is considering entering Chile they should have a clear understanding of what to expect in there international business dealings. The important aspects to know for understanding Chilean business practices are the culture, business etiquette, political system, laws, accounting practices, trade issues, globalization standing, and financial matters. This paper gives a country summary to help implement business dealings in this growing county.

Culture

Chile, with its European heritage and centuries of Parisian education, has influenced its art, music and architecture (Pacific Island Travel, 2005). As in most cultures, religion has also played a large part in its architecture and art. Chile is ninety percent Roman Catholic. The most dominate language is Spanish, although, English is widely spoken. Chileans are a wide range of races and nationalities including Spanish, English, German, Italian, and Asian (Chappell, 2005).

The varied nationalities of this country have meshed to make their own unique identity. The cuisine of this country reflects its topography with a variety of seafood, beef, fruit, and vegetable dishes (Pacific Island Travel, 2005). However, most of the traditional dishes are Spanish influenced. In the more recent years, North America has started to strongly influence the Chilean culture, from food to fashion (Chile Information Project, 2005).

Business Etiquette

While doing business in Chile there are many differences between their culture and that of the United States. In Chilean business culture, the ability to fit in and maintain friendly relationships is often thought higher of than actual business skill. By learning and practicing their culture, conducting business is simpler to apply

Chileans tend to dress more conservatively in the business environment (Executive Planet, 2003). Dressing well is a sign of respect to your business colleagues (Executive Planet, 2003). While there, it is in your best interest not to wear bright clothing that attracts attention to yourself. By dressing in the same style as your Chilean counterparts, you will promote comfort and security that will help ensure acceptability (Executive Planet, 2003).

Making appointments is also an important aspect of Chilean business. Introductions through third parties are considered a necessary beginning to doing business in most firms (Executive Planet, 2003). The summer season is opposite that of North America so January and February are not the months to conduct business. These months are usually popular vacations times for its residents (Executive Planet, 2003). Appointments are usually schedule through a firm's secretary two or three weeks in advance (Executive Planet, 2003). As in most European countries, Chile writes the day first than the month and year (Executive Planet, 2003).

There are many culture differences when dealing in Chilean business. Business cards are usually exchanged after a handshake. It is polite to have your business card translated to Spanish on the back before exchanging it (Executive Planet, 2003). When receiving a card it is respectful to look at it and read it before going to next subject or introduction (Executive Planet, 2003). Chilean people tent to avoid aggressive behavior (Executive Planet, 2003). Their religion has a dominant effect on their thinking making ethics extremely high and truth is valued.

As stated before in this paper it is important to Chilean business people to establish a firm relationship. This is often done in a social environment. Lunches and dinners can last two to three hours, are a good way to get business done, and help build these ties.

Business Operations

The key to competing in Chile and opening the communication doors lies in finding a good Chilean partner to use their established connections to