Chile Compared to the United States

United States Chile
Location: Southern South America, bordering the South Pacific Ocean, between Argentina and Peru.
Total Land: 756,102 sq. km
Coastline: 6,435 km
Terrain: Low coastal mountains; fertile central valley; rugged Andes in east
Climate: Temperate; desert in north; Mediterranean in central region; cool and damp in south.
Border Countries: Argentina 5,308 km, Bolivia 860 km, Peru 171 km
Notes:
* the longest north-south trending country in the world. * Atacama Desert - the driest desert in the world - spreads across the northern part of the country. * The crater lake of Ojos del Salado is the world's highest lake (at 6,390 m).
Natural Advantages:
Natural Disadvantages: Severe earthquakes; Active volcanism; Tsunamis * Volcanism - significant volcanic activity due to more than three-dozen active volcanoes along the Andes Mountains; Lascar (elev. 5,592 m), which last erupted in 2007, is the most active volcano in the northern Chilean Andes; Llaima (elev. 3,125 m) in central Chile, which last erupted in 2009, is another of the country's most active; Chaiten's 2008 eruption forced major evacuations.

Population
Ethnicity

* Total Population: 17, 067,369 (July ’12 est.)

Religion Age Structure

Notes * Literacy Rate: 95.7% * Average Life Expectancy: 78.1 Years (Males: 75.8 yrs., Females: 81.25 yrs.) * Language: Spanish (official), Mapudungun, German, English * Birth rate (14.3 births/1,000 population) is higher than Death rate (5.8 deaths/1,000 population) * Population below Poverty Line: 15.1% * Unemployment Rate: 6.6% (2011), 7.1% (2010) (decrease of 0.5%)
Politics and Legal Structure 1) Form of Government: Republic 2) Chief of State: President Sebastian Pinera Echenique (since 11 March 2010); note - the president is both the chief of state and head of government. 3) Next Election: December 2013 4) Capital: Santiago 5) U.S. Ambassador to Chile: Felipe Bulnes 6) Chilean Ambassador to United States: Alejandro D. Wolff 7) U.S. Embassy in Chile: Avenida Andres Bello 2800, Las Condes, Santiago 8) Political Parties: Broad Social Movement or MAS; Clean Chile Vote Happy or CLVF (including Broad Social Movement, Country Force, and Independent Regionalist Party or PRI); Coalition for Change or CC (also known as the Alliance for Chile (Alianza) or APC) (including National Renewal or RN [Carlos Larrain Pena], Independent Democratic Union or UDI [Juan Antonio Coloma Correa], and Chile First [Vlado Mirosevic]); Coalition of Parties for Democracy (Concertacion) or CPD (including Christian Democratic Party or PDC [Ignacio Walker], Party for Democracy or PPD [Carolina Toha Morales], Radical Social Democratic Party or PRSD [Jose Antonio Gomez Urrutia], and Socialist Party or PS [Osvaldo Andrade]); Partido Ecologista del Sur; Together We Can Do More (including Communist Party or PC [Guillermo Teillier del Valle], and Humanist Party or PH [Danilo Monteverde]) 9) Legal System: Civil law system influenced by several West European civil legal systems; judicial review of legislative acts in the Supreme Court.
Political/Social Unrest Index

* The Political Instability Index shows the level of threat posed to governments by social protest. The index scores are derived by combining measures of economic distress and underlying vulnerability to unrest. The index covers the period 2009/10, and scores are compared with results for 2007.

Raw Materials/Natural Resources 1) Natural Resources: copper, timber, iron ore, nitrates, precious metals, molybdenum, and hydropower. 2) Electricity a. Production - 59.75 billion kWh b. Consumption - 53.24 billion kWh c. Exports - 0 kWh d. Imports - 958 million kWh 3) Crude Oil e. Production – 6,000 bbl/day f. Exports – 0 bbl/day g. Imports – 197,000 bbl/day h. Proved Reserves - 150 million bbl 4) Agriculture: grapes, apples, pears, onions, wheat, corn, oats, peaches, garlic, asparagus, beans; beef, poultry, wool, fish, timber. 5) Industries: copper, lithium, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement, and textiles.
Land Use

Economics Exports of Commodities Include: | Imports of Commodities Include: | Copper | Petroleum and Petroleum products | Fruit | Chemicals | Fish Products | Electrical and Telecommunications Equip. | Paper and Pulp | Industrial Machinery | Chemicals | Vehicles | Wine | Natural Gas | Total Exports: (2011 Est.) $81.64 billion (2010 Est.) $71.03 billion Difference = +$10.61billion | Total Imports: (2011 Est.) $70.92 billion (2010 Est.) $55.17 billion Difference = +15.75 billion | Environmental Agreements
Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Wetlands, Whaling (signed, but not ratified)

Infrastructure
Airports: 476 (388 are unpaved, 88 are paved)
Heliports: 1
Total Railway Length: 7,082 km
Total Roadway Length: 80,505 km (16,745 km are paved, 63,760 km are unpaved)
Ports and Terminals (Cities): Coronel, Huasco, Lirquen, Puerto Ventanas, San Antonio, San Vicente, Valparaiso * Chile is well connected via air service to the United States and countries throughout Latin America. American Airlines has non-stop service between Santiago and both Miami and Dallas. Delta Airlines has non-stop service to Atlanta. Chile’s main airline, LAN, partners with American Airlines in the OneWorld Alliance and offers non-stop service to Miami and direct service to Los Angeles via Lima, Peru.
Telephones: Cellular: 22.4 million Main Line: 3.366 million
Telephone Carriers: Claro, Entel, and Movistar. * (Visitors can rent cell phones in Chile or are advised to check with their own United States-carrier to see if their phone is able to make international calls from Chile. Cell phones can be rented at kiosks in Santiago’s international airport.)
Broadcast Media: National and local terrestrial TV channels, coupled with extensive cable TV networks; the state-owned Television Nacional de Chile (TVN) network is self-financed through commercial advertising revenues and is not under direct government control; large number of privately-owned TV stations; about 250 radio stations.
Internet Users: 7.009 million
Internet Country Code: .cl
Business Hours in Chile: Because Chile is in the Southern Hemisphere, its seasons are opposite those in the United States. This means that when the United States enters daylight savings time, Chile falls back at about the same time. Consequently, during the northern winter, Chile is 2 hours ahead of Eastern Standard Time. In the summer, Chile is the same time as Eastern Daylight Time. Business hours in Chile are roughly the same as the United States. Most offices open at 8:30 or 9:00 am and continue until usually 6:00 pm or later. Lunchtime is usually later (beginning at 1:00 pm or later) and longer (1-2 hours) than in the United States.
Regional Groupings
Various Economic Group Memberships including: 1) OECD (Organization for Economic Cooperation and Development) (first South American country to join) 2) European Union 3) APEC (Asia-Pacific Economic Cooperation) 4) ISO (International Standards Organization) 5) Mercosur 6) Interpol 7) WTO (World Trade Organization) 8) Rest of the various organizations (BIS, BRICS, CAN (associate), CD, CELAC, FAO, G-15, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICRM, IDA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO , IOC, IOM, IPU, ITSO, ITU, ITUC, LAES, LAIA, MIGA, MINUSTAH, NAM, OAS, OPANAL, OPCW, PCA, SICA (observer), UN, UNASUR, UNCTAD, UNESCO, UNFICYP, UNHCR, UNIDO, Union Latina, UNMOGIP, UNTSO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO)

Summary/Recommendations * Even though Chile is a relatively small market, its open trade and investment policy is what makes it attractive. * It provides interesting niche markets and solid opportunities for U.S. exports. * Chile remains one of the most stable and prosperous developing nations and consistently ranks high on international indices relating to economic freedom, transparency, and competitiveness. * Fares very well in terms of democratic development, gross domestic product per capita, and freedom of the press. * Highest ranked country in Latin America in terms of competitiveness, according to the World Economic Forum’s Global Competitiveness Report 2009-2010. * Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. * The market for agriculture machinery and equipment grew by approximately 44% and is expected to grow approximately 18% during 2012, and at rates between 7-8% yearly averages, through 2015. * Appearances are an important part of Chilean business. Dress codes are generally formal and conservative - suit and tie for men and discreet business suit (skirt or trousers) for women. Men tend to put on their jackets when leaving the office, even if it is just for lunch. Business attire becomes less formal outside major cities and in certain sectors. It is useful to have business cards printed with English on one side and Spanish on the other. Generally, cards are presented to everyone in a meeting. * Many Chilean businesspeople are well-educated professionals who travel internationally and speak English. However, not all speak English, and foreigners will often find the ability to speak Spanish very useful, if not an absolute must.
Chile to U.S. Comparisons | Chile | U.S. | Land Size | 756,102 sq. km | 9,826,675 sq. km | Population | 17, 067,369 | 313,847,465 | Literacy Rate | 95.7% | 99% | Form of Government | Republic | Democracy | Legal System | Civil law system influenced by several West European civil legal systems; judicial review of legislative acts in the Supreme Court. | Constitution-based federal republic; strong democratic tradition |
Key Points of Marketing Strategy
Business Goal: Introducing John Deere into the Chilean market and becoming a truly global company that will combine the technology, expertise, experience, channels and investments of the Worldwide Agricultural Equipment Division and the Worldwide Commercial & Consumer Equipment Division into a single unit called the Worldwide Agriculture and Turf Division.
Situation Analysis * Company Profile * John Deere Company * John Deere is dedicated to those who are linked to the land – farmers and ranchers, landowners, builders, and loggers. * “Nothing Runs Like A Deer” * Product Profile * Founded in 1837. * Target Audience * Commercial Farmers * Landscaping Professionals * Do It Yourselfers (DIY) * Product Positioning * Differentiation from the competition * Gets the job done faster than the competition * By completing more jobs faster, farmers and landscapers can increase efficiency and enhance their revenue stream. * Marketing Objectives * The two television stations John Deere would use commercials for are Canal 13 (partly owned by Chile’s Catholic Church) and TVN (owned by the state). Both are the country’s two major stations. * The best radio station for a John Deere radio spot would be Radio Bio-Bio. This tenured station (created in 1966) airs over 40 frequencies across all of Chile. * Distribution Strategy * Ship directly to ports in Santiago. Take the strategic routes between the Atlantic and Pacific Oceans (ex. Strait of Magellan, Beagle Channel, Drake Passage).

Works Cited * www.deere.com/en_us/docs/html/corporate/global_citizenship_report/index.html * www.sec.gov/archives/edgar/data * http://export.gov/chile/static/CCG%20Chile%202012_Latest_eg_cl_050006.pdf * https://www.cia.gov/library/publications/the-world-factbook/geos/ci.html * http://viewswire.eiu.com/site_info.asp?info_name=social_unrest_table&page=noads