The Chilean market has become more attractive over the last twenty years. With the political remodeling in the mid-eighties, Chile is now one of the most stable democracies in the Southern hemisphere. The economy has grown to such an extent that Chile is presently investing large sums of money in Brazil and Argentina. Create a business plan to locate potential partners. Nurture and cultivate personal rapport with partners but expect cultural differences.
Personal relationships are very important.
During the seventies most of the Southern American economies were governed by military governments that borrowed large amounts of money to fund their countries. Now, in the nineties, the economies are experiencing a recovery. Due to the modernization of the privatized industrial sector, imports are largely made up of capital goods and spare parts for capital goods. There are no restrictions on foreign capital, hence repatriation of profits is not an issue. Recently privatized industries include railways, airline, telecommunications, energy and water supply.