Chile Country Analysis

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Chile is a country whose inhabitants are mainly of Iberian (mostly of Andalusian and Basque origin) and Native American (mostly of Mapuche/Araucanian origin) There are also small populations of Aymara, Quechua Kolla, Diaguita, Yaghan, Rapa Nui, and Kawaskhar in other parts of the country. As BBC News has mentioned Chile is a multi-ethnic society, including people of European and Indian ancestry. (BBC,2012).

Factors that affecting the country

Ideological factor

Chile is a democratic government that is a place that facilitate business environment. As in most of the time, business policy would directly affect economic activities, for instance, a rise incorporation tax and interest rate. Both of them would increase cost of that company.

Economic factor

The Chile government provides financial subsidies in order to attract foreign investment, as more capital from oversea would help the development of the economy.

Chilean system comes in a lower percentage when comparing to other countries. For the total share of profit in Chile, it is 28.1% while for Latin America & Caribbean is 47.2% (refers to appendix 1).

Political factor

Chile is a stable country with a solid economy, a clear institutional framework and well-respected democratic institutions. The country's economic model is one of the most open in the world.

Sebastian Pinera, who is the current president of Chile, was elected in January 2010 and promised to use his business knowledge to focus on creating more jobs. Also, he owns a television station, a football club and a large share of Chile's flag-carrier airline Lan Chile.

Conclusion

Chile is a good emerging market in Latin America that attracts investors, however, there are threats that slow down the economic development of Chile:

For example, there are potential threats of bombings by terrorist groups. Currently, between the Chilean government and a large group of rebels in the south, there is an ongoing conflict and fighting can turn violent at any moment. (Sylvester, 2014) Bomb attack is a very serious crime and it may cause a number of dead lives and financial damages. The place that suffered from bombing requires time for recover. Hence, if there were bomb attacks, people from business sector in the world may think that Chile is not a right place for them to have investment and hence, it may affect the desire of investors.

Recommendations

Chile is rich in copper, which is a raw material. Raw material is a very important element when it comes to production and architecture. The Chile government can sign some agreement for cooperating with countries which is desire for chopper and gain benefits from that country.

As there are things that would threaten the development of Chile, for instance, the terrorist group, Chile government can put more effort on solving the conflicts or issuing guidelines for government department on handling accidents in order to give convenience to investors. Also, drills for terrorist attacks can be held so as to let the public be more aware on tackling these kinds of issues.

To conclude, Chile is a city with diversely growing statistics on economic and social perspectives especially on the GDP and the world classification that joining different influential organizations. With the comment of ‘a remarkable country that is outperforming both the region and the world’ (Powell, 2013), it is believed that Chile would become a stronger country after a few decades.