Business Visit - Politics and the Economy of Chile

On Tuesday morning, we hopped on the bus and drove to a beautiful French-style building surrounded by colorful flowers. Our morning visit provided us with information supporting the strategies of business within Chile.

The location for our morning business meeting.

The presentation is ready to start!

Our speaker was Rodrigo Contreras who has worked in the Chilean government, studied several business fields related to international business and he is now a Professor. The presentation was titled "Chilean Economic and Political Panorama". We learned about the evolution of Chile through economic and political perspectives, most specifically related to the evolution of economic policy over the last 100 years. The presentation began with a six minute video which emphasized all of the amazing aspects of Chile. Chile has optimum conditions for olive oil production and cultivation, they are a premium exporter of wine, it has strong institutions, free trade agreements with 58 countries, fresh fruit during every season, and there are ten biodiversity reserves. 

There were many interesting topics and facts spoken throughout this presentation. Mr. Contreras was knowledgeable about Chilean practices and helped to create an engaging atmosphere that encouraged questions from the group. One key component that defines trade in Chile is that it is the only country that has the same tariffs on all of their products. So, this means that there are no incentives given to specific items. If a company wishes to excel then they will have to find what sets them apart from other similar products. Mr. Contreras said, "if you are competitive, you will remain in your industry". Related to this question, Wes had asked "Do you think the universal tariffs help or hurt the country?". The response to this question was that this is an open question because it all depends on what the country is trying to achieve in their model for trading. A country can use the minimal tariff strategy to gain new investors who will trade more in that country. The increased availability of products and interest in the country will then in turn create more revenues.

Chile follows an Agroexport model, which applies the strict Neoclassical Economic Model and full liberalization of the economy which supports the rapid growth of production. Over the past 5 to 10 years, there have been noticeable changes in the consumers of Chile. These consumers are aware of governmental impacts on their lives, most recently decreasing the use of plastic bags and becoming more environmentally aware, as well as being conscious of food nutrients which are represented through changes in the labeling of products (due to the Food and Advertising Law). During the question and answer period, Swathi had asked "Is voting mandatory in Chile?" and the response was that it used to be but it is no longer mandatory. Everyone in the room was amazed when Mr. Contreras mentioned the percentages of voter turnout. When voting was mandatory, 45% of people were active and now without the mandatory laws in place, that number is closer to 30% of voters. There is a lack of trust in the potential individuals who could be voted into the branches so citizens chose to ignore the elections. The Chilean economy is often driven by political changes. The world of business is always evolving and several policies can shape the success of a country's economy.

City Game

           On this beautiful day in the heart of Chile as we walked out of the hotel we got on the bus. Unfortunately, two students were unable to make the bus and had to take an Uber; they were later able to meet up with the group and begin the process of the city games. As we waited patiently in line for the gondola, we were able to take in the moment and enjoy the warm company of the sun. As we embarked on our first challenge, we had the opportunity to take in the gorgeous view of the city and try one of their delicious candies to complete our first challenge. Next, we continued our journey to the ice cream shop to take a small break and enjoy the variety of different flavors we purchased. After eating our cool ice creams, we then walked across the street to take a team picture in front of the Fine Arts Museum.

         "Absolutely breath taking" (Maddie Roy)     "Let the games begin!" (Nolan Parent)

            As we continued walking down the street, we hear a crowd of people in the area of Bellas Artes near the Botero’s horse where we completed another challenge.  Everyone was huddled around a man that was telling jokes in the form of a story.  After being entertained, our next destination was the Plaza de la Constitucion and took pictures with the three former presidents of Chile.  Our last task we decided to try was taking a team photo with the Red Dog that is located in Centro Cultural La Moneda.  However, when asking direction of its where about, we come to find out that they have relocated it in another country.  After receiving the bad news, we bought a metro card and took the train back home.  Overall, it was educational game and we as a group had lots of fun exploring the city.

Visit to Pueblito Los Dominicos

After our informative meeting with Rodrigo Contreras we headed over to Pueblito Los Dominicos to do some shopping! This shopping area is a handicraft village with many small shops and kiosks. For almost two hours our group was able to explore the outdoor area and all of the culture that came with it. When we first arrived we immediately saw a variety of animals such as fish, guinea pigs, bunnies, cats, parrots, and even a peacock. The atmosphere of this market felt much more relaxed than the street market we visited in Argentina. There were beautiful plants and flowers surrounding the dirt pathways between the shops. As we walked around the village the store owners were very friendly and welcoming to us. Each store was a little different from its neighbor which made the shopping trip very exciting.

Colorful plants and animals at Pueblito Los Dominicos!    

                   
One of the most unique things about this shopping day was that many of the products were created right in front of our eyes. There were wooden carvings, paintings, jewelry, clothing and other crafts being designed as we walked into the stores. This experience was unlike anything we have seen in shopping areas of the United States. Matt Defreitas said, "It was cool to see the production of all the different cultural and hand made products that the stores were selling". These shop owners have incredible talent and passion for their work.

                     Beautiful hand made pieces of art!                         

After we all bought our souvenirs we stayed in the village for a delish lunch at a small cafe. As we were sitting around the table Ashley Antonelli said, "It is so nice being able to purchase items for my friends and family to share this incredible experience with". Overall the day at the shopping village was a success. We all bought souvenirs and gifts that have a special meaning and will allow us to always remember our time together in Chile.
                                                       

Paninis for lunch!