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Chile PEST Analysis

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Martha No

on 30 August 2015

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Transcript of Chile PEST Analysis

Chile PEST Analysis
What does PEST stands for?
Political/legal
Chile has become a regional leader because of the democratic stability that guarantees a safe environmental for doing business.

It has a republican, democratic and representative political system with a presidential character, besides it's divided in three powers: legislative, executive and judicial.
Economical
Chile is known for having the best results in economy at Latinoamerica and its growth is one of the strongest of the OCDE. According to the foreigner investors, these country has one of the most powerful models of stable economy since the exportations represent 1/3 of the GDP but it´s exposed to the world situation especially the fluctuations in copper
Control Inflation
In 2014 the GDP had slowed (2%) miner sector stopped, in 2015 it´s expected to grow thank to the invention of the no-miners sectors and a more dynamic exportation.
17, 772, 871 habitats
in 2014
Social
The unemployment rate had decreased specially with the young ones, implying 5.5% of the population.
Customs
Rodeo
at Chiloé
La Tiranza
Food
There´s a study that made a genealogic tree and there was a huge relationship between food, bringing out a relevance of the regional culinary and as consequence the identity of the people.
Technological
SIRVE 200
Biometrical
software
Aero conveyor
radar
-In addition, the governmental expansionary fiscal policy should also boost growth.

-Real incomes are rising with employment continuing to trend higher and nominal wages growing by around 2% faster than inflation rate.

-The government is also boosting growth by supporting consumption and public investment.

Industrial Opportunity
Food industry because of their exports in the last three years, they started to increased and predicted to maintain it or increase it.
-It remains vulnerable to movements in global commodity markets in particular cooper.

-Chinese growth triggered by an abrupt change in investment activity would have a substantial impact on Chile.

-The fall in the copper price would put pressure in the currency and the government finances
Industrial Threat
Diverse studies and international evaluations place Chile as one of the most attractive destinations for the foreign direct investment (IED) and for operations of outsourcing service.
The positive business commanding climate in the country - characterized by his political stability, macroeconomic solid foundations, increasing process of international insertion, high level of connectivity, wide availability of human qualified resources and excellent quality of quality of life - positions Chile as a platform of excellence to export goods, services and technologies towards the rest of the world.
Evaluation
of attractiveness
In the last 30 years, the Chilean law has guaranteed to the foreign investors a clear, coherent and not discriminatory treatment. At present, there are more than four thousand foreign companies operating in Chile. The foreign direct investment (IED) materialized between January and December, 2007 reached US$ 1.371 millions. The materialized investment accumulated across the D.L.600 between the year 1974 and 2007 reaches to US$ 64.700 millions. The sectors that the major IED have received are A Mining industry; Electricity, gas and water; Financial Services and Communications.
http://chileabroad.gov.cl/sobre-chile/asi-es-chile/organizacion-politica/sistema-politico/
https://es.santandertrade.com/analizar-mercados/chile/politica-y-economia
http://www.datosmacro.com/demografia/poblacion/chile
http://universidades-iberoamericanas.universia.net/chile/vivir/cultura.html
http://www.conicyt.cl/documentos/CyTConicytparaque.pdf

References
Carlos Enrique Mejía López
Belén Martínez
Alan Fernando Ocampo Mata
Martha Fernanda Noriega Navarro
Full transcript