Chile : A Market Oriented Economy With A Reputation For Active Foreign Investments

The government also advocated the development of domestic industry in order to protect Chile from future external economic shocks. Thus, Chile, like many other Latin American nations at the time, adopted a policy of import-substitution industrialization. Its aim was to “encourage the creation of homegrown industries to replace Latin American dependence on foreign manufactured goods” (Berliner) which was done in part by establishing quotas, licenses, and higher tariffs on imports and a strict exchange rate in Chile.

Growing up in my country, Peru, was a formative and great learning experience because as I grew into an adult and participated in the economy, I learned how Peru’s financial system worked as a nation exporting agricultural goods. Peru’s history as a great, fertile farmland country made it a huge partner for potential buyers all around the world; these countries could take advantage of the exotic and plentiful fruit and vegetable products. During the government of Peru’s ex-president Alberto Fujimori, Peru signed the Free Trade Agreement with the United States, in 2006 and became a big exporter of goods. 3 years later, after a great turnout, Peru signed another Free Trade Agreement with China and this came to be a fruitful trade partner

As the world’s largest producer of copper, Chile has been hit hard by the dramatic slump in prices. It’s not just that Chile is a big player in the copper market; the copper industry is also a big player in the Chilean economy. As noted by Stratfor, “49% of the country’s exports are related to the copper industry, and mining activities account for about 14% of Chile’s gross domestic product.” But Chile has weathered the drop in copper prices — which have plunged by 35 percent since their peak in 2011 — thanks to government policies enacted in the recent past. This can be seen the picture

In the presence of Chile’s economic, social and political problems General Augusto Pinochet deprived the democratically elected president Salvador Allende in 1973. During Pinochet’s ruling he set out on slowly reforming many aspects of Chilean society. Before discussing whether or not Pinochet was successful in bringing Chile political stability. However before acknowledging the economic success during his time in power between 1973 and 1990, it is necessary to begin this by acknowledging former president Allende’s unsuccessful democratic approach the people of Unidad Popular government, before Pinochet’s regime took charge. Observing both the internal and external problems he faced one can gather an understanding of the eventual

Chile has become a market-oriented economy characterized by high levels of foreign trade, strong financial institutions and sound policy that have given it the strongest sovereign rating in South America. Over the last decade, FDI has represented an annual average of over 6 percent of Chile’s GDP. Exports of goods and services accounted for approximately one-third of GDP, with commodities making up three-quarters of total exports. Copper provides 19% of government revenues. The mining sector attracts 50.1 % of implemented FDI under DL600, followed by services (26.6 %); electricity, gas and water (10.9 %); manufacturing (7.9 %); construction (2.4 %); transportation and communications (1.7 %); and agriculture and fishing (0.5 %). According to

China is now one of the main trading partners of several countries in the LAC region, and an increasingly important source of direct investment and bilateral funding. In 2009, 7% of Latin America's exports were to China and 5% of China's exports went to Latin America. China and Latin America have experienced an impressive trade boom since 2000, increasing trade 22-fold, and today, China is the largest trading partner for Brazil, Chile and Peru. Ties between Latin America and China are now evolving well beyond just trade and moving into programs of cultural

Economy: To be one of the fastest growing economies in the past decade in Latin America with an average of 8.4% GDP (gross domestic product) in 2004 and 2013, Panama is beyond stabled! In the year of 2010 and 2011, the Panamanians phenomenally accelerated its growth rates to double-digits. Their economy is extraordinarily high due to imports and exports through the Panama Canal and other industries. Bananas, corn, coffee, and sugar are the principals of cash crop, aside from that the agriculture sector became less important throughout the years. The 2007 project, expansion of the Panama Canal, has become the major source of Panama’s economic activities. Panama is a dollarized economy and has a stable political environment.

Since the 1990’s, Chile’s economy has flourished almost effortlessly. Overcoming many of the problems it was faced with, Chile has “earned a reputation for being the best-managed economy in Latin America” (Flannery). The country was able to efficiently rebuild the economy in 2011-2012 after the financial crisis put a dent in growth and “increased the GDP by roughly 8.4 percent” (COHA). Chileans attribute much of their success to copper sales, with them being the “leading producer of the metal in the world” (COHA) and a majority of their economy relying on copper prices. However, while progress has slowed in recent years it does not explain the gradual resolving poverty rate in Chile. Chile’s poverty level does not correlate accordingly to its booming economy. In comparison to developing countries like Peru, ranked fourteenth for population below poverty line, Chile is only ranked twelfth but is number one in GDP for Latin America versus Peru’s ranking at eight

As stated in the beginning of this paper there was a massive undertaking to greatly reduce the poverty rate in Chile during the post-authoritarian years. Starting immediately with President Patricio Alwyin, the Chilean government introduced a new tax that increased for the highest income bracket and increased the capital gains tax. This boosted tax revenue by around 15%. This increase in the tax revenue went straight towards an increase in funding for social programs at from 9.9% to 11.7% of GDP (Dominguez and Lowenthal 1996). Increasing taxes on the wealthy is far from what neoliberalism is supposed to do, but this new tax reform was meant to help increase the revenue of the government to expand programs that would help

South America’s growth has been very minimal in 2015. The country has faced a few setbacks. The region's growth is down to levels last seen in the 1990s, and its debts are heavy and getting heavier. There are two primary factors that cause issues for South America. The first is the decline in the rate of growth in China, which has affected commodity and other exports to China. China’s slowdown, which has punctured commodity prices and, with them, exports from and investment in South America. These include minerals as well as soybeans and other items. The second major factor is the significant decline in oil prices. This decline is having a huge impact throughout South America and is affecting the prospects of growth in many countries. Brazil

The present working paper is referred to the analysis of some “financial benefits” that banking institutions would be receiving as Too Big to Fail (TBTF) banks. The request is whether those institutions are constantly subsided from governments or it is merely a hypothetical idea. For those purposes, it is analyzed the Chilean banking industry to disclose the implicit subsidy in the South American country.

Peru is a developing country that is rich in their physical resources. Due to its geographical location and climate conditions, it is suitable to set up vineyard in the country. The continuation economy growth in Peru, give foreign company an opportunity to go into Peru to invest. This report will show the advantages and disadvantages of the entering the Peru’s wine industry.

Uruguay exported 5.64 billion dollars and imported 8.08 billion dollars in 2016, with the biggest export being Frozen Bovine Meat and rice coming in at the second most export. Crude petroleum was the greatest import for the country and electric generating sets being the second most import. Uruguay’s neighboring country, Brazil, is the country’s number 1 export partner, though it has other countries such as China, Untied States, Argentina, and the Netherlands that it also exports to. Not only is Brazil the number 1 exporter for Uruguay, it also serves as its number import partner accounting for $2.74 billion. Other major importers for the country include Argentina, United States, China, and Germany (OEC-Uruguay). Uruguay’s Beef exports for 2018 are projected to be 420,000 tons cwe (carcass weight equivalent) which is smaller than what was projected in 2017 due to a forecast of a smaller beef supply. This past June, Uruguay had a total of $762 million of beef exported, of the total exported, China received just over half of the total shipments and is expected to be Uruguay’s main market for beef export again in 2018. Along with China, the EU and the United States are Uruguay’s other top trading partners. The majority of exports that Uruguay sends to the United States is chemical lean trimmings and the export relationship between is predicted to stay stable. The free on board prices that

“La principal ventaja del comercio internacional es que amplía los horizontes comerciales.” (Samuelson, Economía) Por ello, la capacidad de negociación de un país tiene un rol fundamental para que éste pueda formar parte de otros mercados y unirse en tratados comerciales con otras naciones. Para todos los países, el comercio internacional les posibilita expandir su frontera de posibilidades de producción, hacer más eficiente su economía, crecer más allá de un mercado interno y obtener beneficios al concentrarse en sus áreas de ventaja comparativa.

The service industry now makes up almost as much as 60-65% of the global economy with India being a major contributor to this industry (KPMG, 2016). India has dignity to know that its country is one of the fastest-growing service sectors in the world. According to KPMG (2016), services remain the key driver of India’s economic growth and continues to grow strong and steady. The services sector contributes more than 50% to India’s GDP and is growing at about 10% per year. IT outsourcing has been a major source of employment for the people living in India. The service sector in India has exceed agriculture with a greater share of GDP and is now considered a service based economy instead of an agriculture economy. In general, the service