...Part One: The Chile Wine Industry The Chilean wine industry has experienced various transformations over the past 30 years – its quality revolution led by the complete technological renovation during the 1980s, the export boom of the 1990s, and the new terror developments during the 2000 decade. This transformation has allowed a new generation of talented viticulturists and winemakers to capitalize on Chile’s viticultural paradise and to produce World Class Wines of unique character and personality. Chile is the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8% by volume of the global international wine market at the close of 2010. However, and most importantly, Chile exports 70% of its wine production, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service. With 150 destination countries and 1.5 billion consumers for each year, Chilean wines are positioned as the country’s most emblematic and best known world ambassador. In the late 1970s and early 1980s, Chileans adopted advanced technology and invested in new machinery for optimizing the winemaking process in the field. The winemaker offered an innovative higher-quality product that was conducive to the development of new wine varieties. Later producers also perfected their wine cellars and invested in better labels and packing, such as boxes, bottles and cartons, that were more attractive to...
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...In “Life in Debt: Times of Care and Violence in Neoliberal Chile” by Clara Han, the author sets out to survey the debt-ridden landscape found in what is a modern day población, which is the Chilean equivalent of a shanty town or ghetto called La Pincoya, Chile. The author introduces the readers to several families whom she uses as subjects to explain the socio-economic landscape as a result of the seventeen year long dictatorship of Augusto Pinochet. The author’s focus in the book is to “consider how the states ‘care’ in the democratic transition is inhabited by the past” (p. 3). This is framed in the sense of how the everyday life is fragmented into unequal social arrangements. That is it say that the author role is creating ethnographic...
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...multinational strategy and to be well-known worldwide. The countries of potential choice are Mexico and Chile. The analysis has been done by comparing the overall information and in-details of each indicator. From evaluation of indicators of both countries, such as economic, social, legal and infrastructure, the analysis has shown that the economy of both countries are quite similar. However, the infrastructure, technological and legal environment seem to be better in Chile. As the Chilean government support the foreign investment in textile sector by promoting the education, technological development and the special policy especially for textile. For instance, tax reduction and promoting education in labour forces. Thus, Chilean labour forces would have the better off in comparison with Mexican labour forces. Another highlighted indicator in the country comparison - which the recommendation has inclined - is infrastructures. Both countries have the similar relative figures in number of infrastructure such as roadway, waterway and airports. But the infrastructure of electricity and internet/telephone networks seems to be at a higher level in Chile. The analysis of relevant regulations which affect Feltex’ direct investment in Chile shows that the company can gain a huge amount of benefits from the high integration in the international trading and investment framework. Chile is a member of the WTO and has signed several bilateral and regional free trade agreements. The country...
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...Field Study – Chilean Wine Industry Chile country analysis 1. Country Profile: i. Population: 16,634,603. About 90% of them are classified as white people and mestizos. ii. Currency: Chilean Peso (CLP). Current spot rate: 0.001924 USD/CLP iii. GDP: Its estimate GDP for 2013 is $285.703 billion (38th in the world ranking). It had been growing constantly since 1997 until 2009 (global crisis). Adjusting it at PPP (reflects real purchasing power) it rises to $341.914 billion (43rd in the world ranking). iv. Income distribution: Since July 2013, Chile is considered a high-income economy. The percentage of Chileans beyond the poverty line was only 11.5% back in 2009. In addition, 64% of the population benefits from government welfare programs, which include poor people and those in risk of becoming poor. Nevertheless, the income distribution is still far from being equal, as shown by the GINI Index of 0.503 (2011). This index hasn’t varied much for the past 20 years. v. Approach to International Trade: Since early decades after independence, Chile has always had active involvement in international affairs. Consistent economic policies since the 1980’s have contributed to a steady economic growth, much of it thanks to its international trade. It currently has the highest degree of economic freedom in South America (7th in the world). In the past 15 years Chile has also signed free trade agreements with more than 10 countries (including Japan,...
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...would drive the firms to be innovative. With a competitive market, people have more choice and this provides great market research availability to find out what people want. Fig.1, Michael Porter, Porter’s National Diamond (1990) Throughout this report an analysis of the Chilean wine industry’s competitiveness at an international level will be carried out. Care will also be taken when considering how well the company in question will be suited to expanding into this market. The diagram above, figure 1, displays Porters National Diamond which will be the main focus for the analysis. Figure 2 shown below shows Porter’s National Diamond adapted to suit the Chilean wine industry. Fig.2 (Ayala, 2013) Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy. According to the CIA World...
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...the ease of advertising to foreign markets via the Internet have increased the potential for a company doing business outside one's home country. INTERNATIONAL TRADE: The exchange of goods or services along international borders. This type of trade allows for a greater competition and more competitive pricing in the market. The competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by supply and demand, making goods and services obtainable which may not otherwise be available to consumers globally. REGIONAL TRADE: A regional free trade agreement removes all barriers to trade and foreign investment, meaning that poor economies are not allowed to use import tariffs to protect their growing industries or their farmers from floods of cheap imports. GLOBALIZATION: The worldwide movement toward economic, financial, trade, and communications integration. ANTI-GLOBALIZATION: Movement whose participants are opposed to capitalism and globalization. The philosophy of the movement is based on the belief that individuals and organizations can achieve social, personal and economic goals without the negative consequences associated with capitalism. The anti-globalization movement places more emphasis on economic efficiency and human decency versus corporate competition and profits at any cost. Globalization implies the opening of local and nationalistic perspectives to a broader outlook of an interconnected...
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...Effect: Tariffs, Quotas, and Subsidies The most common way to protect one’s economy from import competition is to implement a tariff: a tax on imports. Generally speaking, a tariff is any tax or fee collected by a government. Sometimes the term “tariff” is used in a nontrade context, as in railroad tariffs. However, the term is much more commonly used to refer to a tax on imported goods. Tariffs have been applied by countries for centuries and have been one of the most common methods used to collect revenue for governments. This is because it is relatively simple to place customs officials at the border of a country and collect a fee on goods that enter. Administratively, a tariff is probably one of the easiest taxes to collect. (Of course, high tariffs may induce smuggling of goods through nontraditional entry points, but we will ignore that problem here.) Tariffs are worth defining early in an international trade course since changes in tariffs represent the primary way in which countries either liberalize trade or protect their economies. It isn’t the only way, though, since countries also implement quotas, subsidies, and other types of regulations that can affect trade flows between countries. These other methods will be defined and discussed later, but for now it suffices to understand tariffs since they still represent the basic policy affecting international trade patterns. When people talk about trade liberalization, they generally mean reducing the tariffs on imported...
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...| |MERCOSUR – a POSSIBLE DOWNFALL IN THE ROAD OF A PROMISING FUTURE? | | |[pic] | |Fall 2012 | | | |This paper will be taking a deep look into how Mercosur affected its member countries when it was first created and| | |what the consequences were to take them to where they are now. | | | | | | | Introduction: This paper will take a deep look into a trade agreement created in March 1991 between Argentina, Brazil, Paraguay, and Uruguay, called Mercosur (Mercado Común del Sur, or Southern Common Market). After understanding what a trade agreement is and what are the benefits and disadvantages of being part of one, I will analyze how the agreement changed the economy and overall welfare of the countries involved and how did their interactions changed...
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...Doing Business in Japan The U.S. Commercial Service provides guidance on doing business in Japan and offers valuable assistance to help U.S. businesses exporting to Japan. Why doing business in Japan? As the world’s fourth-largest buyer of American products, Japan is a market that American companies should not overlook, but approach with a thoughtful strategy. Japan is a technology powerhouse, a “proving ground” for consumer requirements, and stands in the vanguard with respect to the sweeping changes recently seen in developed market demographics. Most U.S. state economic development agencies are also well aware of the important foreign direct investment coming into their communities from Japan. While the reasons U.S. firms engage with Japan are diverse, savvy firms recognize that underestimating the strategic and tactical importance of the Japanese market may disadvantage them not only in Japan, but in the United States and third-country markets as well. Japan is back in the business news headlines in 2013, owing in part to a rising stock market, a sharply lower yen, and stirrings of domestic demand for both personal consumption and capital investment. The new economic policy linked to these developments is known as “Abenomics”-- a three pronged strategy of bold monetary loosening, fiscal stimulus centered on infrastructure spending, and growth-oriented structural reform. While the implications and ultimate success of this strategy in reigniting growth in Japan are far...
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...* The number of full-time jobs has increased by 13.4 percent since 1991. The share of the labor force that works part-time because of an inability to find a full-time job is less than 3 percent. * As of July 2000, the unemployment rate had hovered within one-tenth of a point from 4 percent for almost a year--the lowest rate in 30 years.3 * The stellar record of growth has continued in the United States at the end of the decade as well: Between 1998 and 1999 alone, total employment increased by 2 million.4 To be sure, many more policymakers today acknowledge the benefits of free trade than when Congress passed the Tariff Act of 1930 (the Smoot-Hawley Act). The devastation wrought by these protectionist tariffs led successive U.S. administrations to support free trade after World War II. Their grand vision of a world comprised of nations at peace who traded freely among themselves for the prosperity of all has animated U.S. foreign policy and invigorated efforts to facilitate the opening of markets in every region. A growing number of countries continue to share the benefits of America's emphasis on trade. As noted in a recent report by the International Financial Institution Advisory Commission chaired by Allan H. Meltzer, a former member of the President's Council of Economic Advisers and Professor of Political Economy at Carnegie Mellon University: The Congress, successive administrations, and the American public can be proud of these achievements. The United States...
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...| Globalization | | Curtis SwordMGT 333Professor Calton | 4/12/2012 | | Globalization is the process of converting the world markets to a single market without barriers to trade and investment flows. The concept of globalization is said to have been spawned out of the Cold War as a result of the increase in specialization and the need for trade. As a result of globalization many economists, businesspeople, and politicians have found that they needed to change their policies and adopt what is called “the Golden Straightjacket”, which is a set of guidelines that governments and businesses must follow to be successful in a unified market. Many economists, politicians, authors, and businesspeople have differing views on the costs and benefits of putting on the Golden Straightjacket. Tom Friedman, an economist and author, argues that the Golden Straightjacket is a good thing for the world economy, while Naomi Klein, author of The Shock Doctrine, argues that free trade is a technique used to make the rich richer and the poor poorer. Other ideas that have been argued are the effect globalization has on the spread of democracy. Tom Friedman argues that globalization is used to revolutionize governments to conform to democracy while Dani Rodrik, author of The Globalization Paradox, says that globalization actually hinders the spread of democracy. Klein, Rodrik, and Friedman offer differing views that reveal the various costs and benefits of globalization. Globalization...
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...2/12/13 Planning Commission, Government of India || INDIA’S ECONOMIC REFORMS: AN APPRAISAL Montek S. Ahluwalia Printable Version 26.8.99 India’s economic reforms began in 1991 when a newly elected Congress government, facing an exceptionally severe balance of payments crisis, embarked on a programme of short term stabilisation combined with a longer term programme of comprehensive structural reforms. Rethinking on economic policy had begun earlier in the mid-eighties by when the limitations of a development strategy based on import substitution, public sector dominance and pervasive government control over the private sector had become evident, but the policy response at the time was limited to liberalising particular aspects of the control system without changing the system itself in any fundamental way. The reforms initiated in 1991 were different precisely because they recognised the need for a system change, involving liberalisation of government controls, a larger role for the private sector and greater integration with the world economy. The broad outline of the reforms was not very different from the reforms undertaken by many developing countries in the 1980s. Where India’s reforms differed was the much more gradualist pace at which they were implemented. The compulsions of democratic politics in a pluralist society made it necessary to evolve a sufficient consensus across disparate (and often very vocal) interests before policy changes could be implemented...
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...India's Economic Reforms an Appraisal India's economic reforms began in 1991 when a newly elected Congress government, facing an exceptionally severe balance-of-payments crisis, embarked on a programme of short-term stabilization combined with a longer-term programme of comprehensive structural reforms. Rethinking on economic policy had begun earlier in the mid-1980s by which time the limitations of a development strategy based on import substitution, public sector dominance, and pervasive government control over the private sector had become evident. But the policy response at the time was limited to liberalizing particular aspects of the control system without changing the system itself in any fundamental way. The reforms initiated in 1991 were different precisely because they recognized the need for a system change, involving liberalization of government controls, a larger role for the private sector, and greater integration with the world economy. The broad outline of the reforms was not very different from the reforms undertaken by many developing countries in the 1980s. Where India's reforms differed was in the much more gradualist pace at which they were implemented. The compulsions of democratic politics in a pluralist society made it necessary to evolve a sufficient consensus across disparate (and often very vocal) interests before policy changes could be implemented and this meant that the pace of reforms was often frustratingly slow. Daniel Yergin (1997) captures...
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...Chilean Economic Structure An analysis of the Chilean economic structure reveals that this country has overcome the 1970’s Marxist economic rule, austerity and mass privatization to obtain the strongest sovereign bond rating in South America. Under the rule of socialist President Salvador Allende from 1970 to 1973, Chile experienced civil unrest and the county spun out of control as President Allende’s economic policies polarized an already fragile nation. During President Allende’s brief tenure, the astronomical rise in the prices of goods and services coincided with a plummeting consumer purchase power rate cased massive inflation that plunged the country into a huge recession. The following details the Chilean economic structure and the role the government played during its pedestrian growth in the 1950’s, its fall in the 1970’s and its current day resurrection. During the 1950’s to 1970, Chile had the poorest economic performance among Latin America’s large and medium-sized countries. This pedestrian growth was attributed to the government and its overvaluation of the domestic currency. The government continually resorted to controlling agricultural prices in order to subsidize the urban and middle classes. This subsidy caused a lag in the growth of the agricultural sector, was one of the most glaring symptoms of Chile’s economic woes during the 1950’s. At the beginning of the 1950’s, inflation, which had already and economic problem and been since the 1880’s, became...
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...En 1994 un grupo de empresarios peruanos adquirió el Banco Internacional del Perú, con la visión de convertirlo en una entidad financiera líder en banca personal, al servicio del todos los peruanos. Este sólido grupo empresarial peruano está marcando la diferencia en rubros tan diversos como supermercados, con Plaza Vea, Vivanda, Mass y Economax, seguros de vida y accidentes con Interseguro, hotelería con Casa Andina y entretenimiento con CinePlanet, la cadena más importante de comida rápida en Perú, Bembos y en farmacias, la recientemente adquirida Inkafarma, entre otros. SPSA, inició sus operaciones con el nombre de Supermercados Santa Isabel S.A. en 1993. La cadena creció durante la década de los noventa mediante la adquisición de las cadenas Mass y Top Market, y el arrendamiento del supermercado San Jorge. Gracias a estas adquisiciones, Santa Isabel se consolidó como la segunda cadena de supermercados en el Perú. En 1998, el grupo Holandés Royal Ahold, tercer minorista del mundo, se convirtió en copropietario de Santa Isabel, y fue incrementando su participación hasta asumir el control total de la empresa en mayo del 2002. Bajo la administración de Ahold, la empresa lanzó exitosamente el formato de hipermercados Plaza Vea. A inicios del año 2003, Ahold tomó la decisión de vender sus operaciones en Sudamérica. El 11 de diciembre de 2003, el grupo financiero Interbank adquirió la totalidad de las acciones de Supermercados Santa Isabel, brindando a la empresa el respaldo...
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