CHILE

FAST FACTS:

Population:15.8 (Mill.)

Area:756,950 (Km2)

Form of government:Republic (13 regions)

GDP per capita (PPP): $ 9,900

Currency: Chilean Peso (CLP) = 100 cents

Official Language:Spanish

Language of Business:Spanish and English. German is spoken in some areas.

religion:Catholic (80%), Evangelicals (10%), Protestant (4%).

Capital:Santiago (5.2 Mill)

Major cities:Viña del Mar (0.4), Concepción (0.3), so Valparaíso (0.3).

National holiday:Sept. 18

KAY NEGOTIATION POINTS: When making first contact is advisable to use an intermediary. Banks, consultants

and business associations facilitate contact with firms.

The ability to interact professionally is very important. Establish personal

relationships that enable start businesses and resolve difficulties that may arise is

key.

Decision making is very hierarchical. The first visit should be at senior

management level, although negotiations are conducted with middle managers.

You have to set appointments with two weeks notice. Once in the country re-

confirm the date and time.

The first meeting is usually not go into details. This is the party's co-nise and to

describe the activity of the respective companies.

The Chileans are straightforward and take the negotiations seriously. The trading

environment is more formal than in other Latin American countries. Occasionally

make use of a witty sense of humor.

Presentations must use subjective arguments and show enthusiasm, rather than

overwhelm you with a lot of data.

Punctuality a quality sought, although delayed ten fifteen minutes is considered

normal.

REDUCING COMMUNICATION NOISE:

The usual form of greeting is the handshake at the beginning and end of the

meeting. Women, when they are known, they can be given a kiss on the cheek.

Unlike other Latin American countries are rarely used titles professionals (Doctor,

Engineer, Degree). Treatments Lord / Lady and Mr / Ms are best suited.

In the conversation should not comment on the time of General Pinochet. Favorite

topics include travel, football, American history and literature references to her

two Nobel prizes for literature, Gabriela Mistral and Pablo Neruda, are greatly

appreciated.

The best time to set a date is mid-morning. It is quite common to prolong the

meeting with lunch. Business dinners (which is called Commission gives in Chile)

are exceptional and are proposed only when there is a certain relationship.

It is customary to give gifts in trade relations. If you receive one should be opened

immediately in the presence of who delivers it.

Avoid making certain gestures. Give a blow with his right fist into his left hand is

considered obscene. Extend the palm with fingers spread means "idiot"

DAY-TODAY POINTERS:

• Business Entertainment Guidelines

“Fashionably late” can mean more than an hour late for dinner

parties.

Mosts business will be done in restaurants, but a Chilean might invite

you home.

The main meal is eaten at midday. 12:30 – 2:30 p.m.

A 5 to 10 percent tip is customary in restaurants.

• Table manners and food.

Many dishes include fish, seafood, chicken, beef, beans, eggs or corn.

Favorite dishes: empanadas de horno and cazuela de ave.

It is considered impolite to ask for second helpings.

Continental style of eating.

GENDER ISSUES:

- The occupations in which women play are not the same

occupations to men entering, therefore, their working conditions

are not similar

- In Chile the integration of women into the labor market is relatively

late and one of the lowest in Latin America. Women account for one

third of the labor force (36.2%) and are concentrated in lower-

skilled jobs and pay.

CASE

Chile is well known for being one of the greatest producers and exporters of

copper (cobre) all over the world. Their biggest client, generally speaking, is China.

They’re everyday copper consumers, they need it to produce a lot of their products

and you can’t really found this metal back there. Chile has being exporting the

metal into China for many decades now and a big part of Chilean economy is based

on this.

Todo Cobre S.A. de C.V. is a Chilean company that has kept their relationship with

China for 25 years by now, they make business with three big Chinese industries

but their biggest client is Major Industry S.A. de C.V.

Major Industry, has always being a great client, most of all because their business

relationship is just based on exporting and receiving the metal and of course,

paying for it. Both of the companies keep on working on their comfort zone and

receiving benefits from one another.

Major Industry has receintly suggested to open a department in their company

dedicated to the study and develop of copper, where there will be innovations on

this matter that will help getting greater benefits out of the metal. The relationship

between their copper exporters and them is quite great so they’ve talked to the

managers of Todo Cobre in order to send one of their Chinese workers to their

company in Chile to receive personal training.

Todo Cobre of course accepts the offer just to try to please even more their big

client.

Major Industry sends two of the future head leaders in the new department they’re

trying to implement.

They’re both American girls with fresh innovations and ideas and an amazing

curriculum.

When they first get to the company to start receiving their training they both direct

themselves to a lower manager, even though the head manager was waiting for

them. They’re fresh minds, they don’t care about hierarchies, they’re in Chile to

learn.

Of course they’re immediately sent to the head manager that gets to know them.

The first thing the old manager with classic ideas notices is that they’re both young

girls that will latter on take big charge in the department. When they get to talk to

know each other, one of the girls tells him she got to know a lot about Chile

because of her father August, she says “Just like one of the famous presidents you

had right?” (Augusto Pinochet). “I’ve heard he was really something, a big leader

that made history”, the girl says.

The manager is incredibly offended, he can’t believe what he just heard, he wasn’t

even happy with the fact that they were both girls and now he’s sure he wants to

just send them back, there were many facts against the training of the girls, and

now there’s no doubt in his mind.

Do you think he should do what he thinks is correct and send the girls back with

the probability of losing their biggest client?

Do you think the man should adapt to the girls fresh minds or the girls should’ve

know better and adapt to the Chilean people?

What would you do if you were one of the girls?