...A Short History and Summary of the Current Conditions in Chile and Its Geographical Situation Stephanie McFearin HUMN 305-Q3WW A Short History and Summary of the Current Conditions in Chile and Its Geographical Situation Geography and Background Chile is a country situated on the west coast of South America. It is also known as The Republic of Chile. The size of Chile is 289,112 square miles with a width of less than 100 miles. It is basically a little larger than Texas. Chile is divided into three main parts, mainland and two territorial islands named Isla Sala y Gomez and Easter. Chile has an interesting history and it has seen many ups and downs in its economic development (Hudson, 1994). A description of the history of the 20th century of Chile and its current economic and political situation is presented below. The history of the 20th century of Chile is mainly focused on its entrance to the parliamentary system and thus it saw the changes in its political situation. In the beginning of the 20th century, Chile was stable despite of having lesser power in the hands of presidents. During this time, congress selected the president for the country. The presidents of this century mainly includes: Germán Riesco Errazuriz, Pedro Montt, Ramón Barros Luco, and Juan Luis Sanfuentes. During the 1920’s, there was an increasing gap between the middle class and lower class of society (Bizzarro, 1987). Due to this gap, the masses were dissatisfied and they called a new leader...
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...Chile’s Business Environment Charlene Bittick Colorado Technical University Online Emerging Markets EMBA650-1201B-01 Phase 1 – Individual Project Professor: Emmanuel Chebe February 24, 2013 Abstract The following report is in reference to the country of Chile and their business environment. It is necessary to include the target market for Chile as it refers to the economy, people and the government. The following topics will be included in the report: total population, population growth rates, ethnic and religious makeup, per capita GDP, income disparity, unemployment rate, educational levels and literacy rates, key industries, economic output, inflation and national debt. This information will be gathered and then compared to possible differences Chile has with the United States market. This report will include to charts that will depict the differences in the data requested from the manager (Task List, 2013). Chile’s Business Environment Most consider Brazil as Latin America’s favorite, but Chile is the country that possesses the best business environment; which is according to the Latin Business Index (2011). This index measures eighteen countries business climates within Latin America. This index’s data is focused on five categories with sub-components. The components and categories are: * Macro environment: Percent GDP growth and percent inflation from 2009 – 2011 and a forecast for 2012 * Globalization and Competitiveness: Globalization ...
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...Global Trade of Wood and Paper Products Abstract Global trade of wood products is accelerating amid shifting regional production of raw materials. At the same time structural change is occurring in regional production and consumption of finished and semi-finished wood and paper products. Some countries which once were major net exporters of wood products, such as the United States, have become major net importers. Conversely, China, a country that not long ago was a major net importer of wood products, is increasingly dominant as an exporter of value-added wood products such as furniture. What are the reasons behind these shifts in sources of supply and demand for wood and wood products? Direct forces such as population growth and rising socio-economic levels drive demand for wood and paper products. Increasing purchasing power in developing economies empowers consumers, both private and public, to purchase homes, furnishings and accessories. Indirect factors, such promotion of wood, strengthen demand and translate to significant gains in consumption in some markets. Consciousness of climate change and the advantages of wood for products and energy is creating a new impetus for increasing wood products consumption, including wood-derived energy products. Government and industry policies are important market drivers. Government policies can support increased utilization of wood, or can restrict wood in construction when standards favor competitive building materials...
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...Roger) 1. Background Arauco was formed through a merger between Industrias Arauco and Celulosa Constitución in 1979. After that, the company began its expansion like purchasing land and plantations and installing new technology, purchasing the company Alto Paraná in Argentina in 1996, purchasing its third mill in Chile in 2000, and building new plant which called Valdivia mill in late 2001 and the plant had opened in January 2004. With these expansions, Arauco had become one of the world’s premier forestry enterprises in terms of plantation areas and yields by 2004. The company had three main product segments which include pulp products like bleached and unbleached Kraft pulp; forestry products like pulpwood; and wood products like lumber and remanufactured wood products. In 2004, the company wanted to invest more to get more development. The company was facing alternatives: one was forward integration moving into paper manufacturing; the other one was horizontal expansion investing US $1 billion to construct a new state-of-the-art chemical pulp plant. 2. Situation According to the case, we can see that the competition in the pulp industry is strong. First, the competition of existing competitors in market pulp was strong. From the case we can get that most of the large companies were involved in backward integration to produce the pulp for their paper themselves. Most major companies had their own forests, pulp mill, paper manufacturing facilities and even...
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...Arauco Case Study Question 1 - Do you think it is a good idea for Arauco to build the Nueva Aldea project? In this question we will be using the DCF technique in order to evaluate the project feasibility: Project name: Nueva Aldea Construction time: 3-4 years, we chose a 4 year construction time because we assumed it will take 3 years of direct constructing and a 1 year for extra delays and administrative procedures. We will also assume that the cost of the construction will be divided evenly between the years. Mill life time: 30-40 years, for the sake of this question we will assume a 35 years lifetime. (P.1 L.10) Expected sales: 350$ million per year at full capacity production. (P.1 L.10) Production Capacity: 700,000 tons of pulp. (P.1 L.9) MES of new pulp mill: 665,000. As of 2004 the minimum efficient scale was 95% of maximum mill capacity. (P.12 L.9) Year of producing | 1 (80% of MES) | 2 (90% of MES) | 3 (100% of MES) | 4-35 (100% of MES) | Capacity usage | 532,000 | 598,500 | 665,000 | 665,000 | (P.12 L.7-8) Cost of production: 197$ per ton. (Exhibit 6) Rate of return: 11%.Chile's expected market return is an indication to the company's project return. (P.12 line 10 from bottom) Depreciation: 44$ per ton. (Exhibit 6) Transportation: 38$ per ton. (Exhibit 6) Export: 85% calculated as average between years. (Exhibit 5) Sunk cost: 150$ million. The first phase of the project is already invested and cannot be returned, thus it is not calculated in the...
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...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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...Economy of Chile Group 10 Nazirabonu Alimardonova Krista Rebecca Bradshaw Romans Opengeims Vladislav Matievsky Edgars Butramjevs Contents Trend Comparison of Indicators - Chile 3 Chile Unemployment 3 Chile Inflation Rate 4 Export, Import and Balance of Trade 4 Government Budget Indicators and Government Debt to GDP 5 CPI and PPI 6 Specifics of the Country 7 Misbalance in the Economy 7 The Crisis of 1982 8 Investing in Chile 8 Future Economic Development 9 Trend Comparison of Indicators - Chile Chile is one of Latin America´s fastest growing economies, mostly due to rise in exports. Big chunk of Chile`s GDP contributes to mining (copper and other materials) 15.2% which is increasing with every year, thus; increasing the GDP. Second largest GDP by sector is business services which make 13% followed by manufacturing industries 11%. Values in Real GDP chart are adjusted for inflation and because of that, its Real GDP will appear lower as Nominal GDP. During the period from 1998 to 2005, Real GDP is higher than Nominal GDP which is an indicator of deflation. During 1999, Chile, like most of Latin America, faced a one-year downturn. Its domestic economy underwent a minor recession due to negative impact of the Asian crisis which triggered the crisis in Chile’s private sectors. This downside is reflected in the Nominal GDP. Another downfall of both Nominal and Real GDP are seen in 2009. During this time Chile suffered economical...
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...Brazil- Islamabad SECOM PULP AND PAPER INDUSTRY IN PAKISTAN General information on the Pulp and Paper Industry in Pakistan. Research and Compilation by the Commercial Section of the Embassy of Brazil in Pakistan. [pic]Pulp and Paper Industry in Pakistan Table of Contents 1. Pakistan’s Economy 2 2. Industry overview 2 2.1 Current Status of Pulp and Paper Industry in Pakistan 3 2.2 Types of papers produced 4 2.3 Method of Producing Paper 4 2.4 Raw Material Availability 5 3. Current status of Trade and Potential of Pak- Brazil Trade Cooperation in this sector 7 3.1 Potential of Export to Pakistan 8 4. Future Outlook 10 5. Companies and Useful Links 11 1[pic] SECOM-Islamabad, Pakistan [pic]Pulp and Paper Industry in Pakistan 1. Pakistan’s Economy Pakistan economy is positioned at 27th largest economy with 488 (1) billion USD in term of Purchasing Power Parity. Pakistan has a semi-industrialized economy, which mainly encompasses textiles, chemicals, food processing, agriculture and other industries. Growth poles of Pakistan's economy are situated along the Indus River, diversified economies of Karachi and Punjab's urban centers. The economy has suffered...
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...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:...
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...with Chile Shayanna Reese Excelsior College Chile culture ranked 79% in an overall economic freedom ranking, while in the United State there is a 76% ranking ("Country Rankings: World & Global Economy Rankings on Economic Freedom," n.d.) . You will find there are some considerable margins of difference between the two countries although they are about equally successful in the business and manufacturing industries. Chile has a business freedom ranking of 70.5% while they are the strongest in property rights at 90% ("Country Rankings: World & Global Economy Rankings on Economic Freedom," n.d.) . However, the Chileans weakest area is their financial freedom coming in at 70% which runs even with the United States over the last three years. Regardless of this information Chile remains of the highest degree of overall economic freedom in South and Central America, including the Caribbean region. This is in part to the Free Trade Agreement (FTA) established January 1, 2004 between the United States and Chile. This agreement allows for commercial trade of goods and services between the two countries as it has reduced the duties and been quite successful with hopes of eliminating tariffs by 2015. Business companies should ensure business with Chile since their economy is flourishing and their ranking in economic freedom continues to be among the top ten in the index ("Country Rankings: World & Global Economy Rankings on Economic Freedom," n.d.) . Chile is also...
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...was seen in 2010 showing moderate growth. Global demand for Methanol had total revenue of $1,967 million in 2010, representing a compound annual growth rate (CAGR) of 4.7% from 1997 to 2010 and an expectant CAGR of 7.3% between 2011 and 2015. Analyze the competitiveness of the methanol industry using Porter's 5-forces and the PESTEL Model. Porter's 5-forces Threat of Entry: The methanol industry is characterized by relatively low product differentiation. Entry barriers include capital requirements to establish manufacturing facilities and other financial obligations, which make a strong and durable barriers to entry. New companies require significant capital in order to set up production plants especially in remote areas where natural resources are in abundant. They will face stiff competition from large companies like Methanex. This means that small-scale market entry is doubtingly to be successful. Bargaining Power of Suppliers: Methanol is a unique product The market has a small existing players in the production of methanol; however, with diseconomies of scale. Due to this, Methanex can negotiate prices for natural resources. Supplier power is increased (like Chile) by the fact that natural resources teds to be scarce and unreliable. Methanex will have relatively few alternatives to their usual inputs, this inturn strengthen suppliers, but in Methanex case, supplier power is low to moderate. Threat of Substitutes: Customers generally have few cost-saving...
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...and Retail Studies, University of North Carolina at Greensboro, North Carolina, USA Abstract Purpose – This paper seeks to present a preliminary investigation into long-term patterns of trade specialization among leading textile- and apparel-exporting nations, assessing patterns of comparative advantage across the textile machinery, man-made fiber, textile and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories. A model of evolutionary change in intra-complex specialization is defined and evaluated. Design/methodology/approach – A revealed comparative advantage index is employed to evaluate international competitiveness for 30 nations over a 42-year period. With repeated measures, ANOVA is used, to determine the significance of the observed patterns across five income-defined groups of nations. Findings – Long-term patterns of specialization broadly reflect expectations of factor proportions theory and industry evolution models. Product and income group characteristics combine to influence comparative advantage. Higher income nations generally remain stronger in more capital-intensive sectors, while lower income countries have emerged to dominate labor-intensive sectors. However, inclusion of a more complex array of variables is necessary to obtain a fuller understanding of international competitiveness. Practical implications – Established theory remains a useful but limited...
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...GLOBAL BUSINESS FINANCE ASSIGNMENT ECUADOR INTRODUCTION Ecuador officially the Republic of Ecuador which literally translates to the Republic of the Equator) is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the w It is one of only two countries in South America, along with Chile, that do not have a border with Brazil. The country also includes the Galápagos Islands in the Pacific, about 1,000 kilometers (620 mi) west of the mainland. Ecuador straddles the equator, from which it takes its name, and has an area of 283,561 km2, 109,415 sq ml. Its capital city is Quito, which was declared a World Heritage Site by UNESCO in the 1970s for having the best preserved and least altered historic center in Latin America. The country's largest city is Guayaquil. The historic center of Cuenca, the third largest city in the country, was also declared a World Heritage Site in 1999.. Ecuador is also home to a great variety of species, many of them endemic, like those of the Galápagos islands. This species diversity makes Ecuador one of the seventeen megadiverse countries in the world. Ecuador is a presidential republic and became independent in 1830, after having been part of the Spanish colonial empire and the republic of Gran Colombia. It is a medium-income country with an HDI score of 0.695 (2010), and...
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...Facultad de Economia y NegociosEscuela de Ingenieria Comercial | Economic development in Panama between 1995-2010 | Taller de Economía Empresarial | | José Venegas Rojas | | Professor: John Cobin Santiago, Chile 2013 I. - Introduction. The controlling purpose of this paper is to review the academic literature about the economic development of Panama between 1995-2010 in Panama City. Panama is among the twenty economies which have grown the most in the past ten years, according to the World Bank, which curiously matches giving ones the administration of the Panama Canal by the United States to Panama in 1999. Most of the buildings in Panama City were built around 2000 and in order to observe this change, the financial statements of the country when it still belonged to the United States, will be analyzed so that it can be possible to consider a factor in the economic development in this country. On December 31, 1999, at midday the Panama Republic took administrative control of the Panama Canal after a long process of negotiation which started in 1977 with the signing of the Treaty between the President Jimmy Carter from the United States and the Panama president Omar Torrijos. This Treaty stated that it was an important issue that Panama guaranteed the neutrality of the Canal. This step of command happened after almost eighty-five years of diplomatic negotiations between the US and Panama. Many Panamanians considered the administration of the Panama...
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...Methanex: Developing Strategy in a Commodity Industry | 1. INTRODUCTION Methanex is the world's largest methanol producer. Before the economic crisis that had occurred in 2008, the company was very successful. It has been successful because of its leadership, which cut operating costs to a minimum, along with its reliable delivery. It also has a multi-million-dollar facility in remote, natural gas rich regions in the world and has its own distribution and logistics system. 2. PROBLEMS AND ITS SOURCES Methanex is facing lower profit margins and having concerns of remaining sustainable in the market due the rising price of natural gas and political instability where its factories are located. The global recession has made regions with Methanex factories, such as Egypt and Chile, extremely unstable. Unlike Methanex's competitors, the company is not well diversified. Methanex is highly reliant on the stability of consumption in the global market for methanol. Although the company's leadership is very strong that has contributed to its success, political and economic instability have resulted in inconsistent gas supplies, thus crippling Methanex's production of methanol. The main source of the problem has been the impact of the global recession. Predominantly, the global recession threatened production facilities in Egypt and Chile. There have been a series of revolutions in Egypt and the surrounding nations, which has resulted in social unrest and political instability....
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