(See Appendix 1) (See Appendix 2)
(See Appendix 1) (See Appendix 2)
(See Appendix 1) (See Appendix 2)
Introduction
Team 6 is requested by the Germany investors to look for the best investment opportunities in Latin America. As a part of the assignment, this feasibility report should also consider next requirements of investors. High ROI & future growth Low risk (e.g. stable country, durable and sustainable growth)
Highest ranking in Latin America on competitiveness, easy doing business and Corruption ranking Stable economic and political situation Highest GDP growth at this moment and in future, low inflation rate, highest income per capita and diverse exporting markets to different countries Spanish as official language, English and German are also quite common for German investors to communicate
3 Local operations
4 Challenges
Source
http://www.emeraldinsight.com/products/case_studies/pdf/chilean.pdf http://www.sonoma-county.org/edb/pdf/2010/wine_industry_insider.pdf http://www.oecd.org/document/27/0,3746,en_36774715_36775671_47899611_1_1_1_1,00.html http://greenteamusa.com/gthink/index.php/site/single/the_roi_of_oceans/ http://en.mercopress.com/2010/10/06/chilean-wine-exports-reach-1.5-billion-usd-in-12-months-but-profits-down http://country.eiu.com/Chile
Bolivia 832 km, Brazil Belize 250 km, 1,261 km, C hile 5,308 Guatemala 962 km, US km, Paraguay 1,880 3,141 km km, Uruguay 580 km
58 food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, textiles, clothing, motor vehicles, consumer durables, tourism 3% 14% 23% 63% US 73.5%, C anada 7.5% manufactured goods, oil and oil products, silver, fruits, vegetables, coffee, cotton
85 food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, steel 7.5% 5% 23% 72% Brazil 21.2%, C hina 9.1%, C hile 7%, US 5.4%
31 copper, lithium, other minerals, foodstuffs, fish processing, iron and steel, wood and wood products, transport equipment, cement, textiles 5.3% 5% 42% 53% C hina 23.8%, Japan 10.2%, US 10%, Brazil 6%, South Korea 5.9%
textiles, shoes, chemicals, cement, lumber, iron ore, Industries tin, steel, aircraft, motor vehicles and parts, other machinery and equipment Industrial production growth rate agriculture industry services Export countries
4% 20% 14% 66% C hina 15.2%, US 9.6%, Argentina 9.2%, Netherlands 5.1%, Germany 4%
transport equipment, iron Export commodities ore, soybeans, footwear, coffee, autos
soybeans and copper, fruit, fish derivatives, petroleum products, paper and and gas, vehicles, corn, pulp, chemicals, wine wheat
Pro
High competitive ranking # 31 worldwide; Easy doing businesses #39 worldwide; Corruption ranking at #17 worldwide; These are the highest rankings in Latin America Economic and political stability, due to high FDI1 Country is not threatened by high crime, racial tensions or a terrorist problem2 GDP is 6.5% in 2010 is one of the highest in the region Industrial growth 5.3% as one of the highest GDP growth for next 20 years is expected at 4.6% Chile ranked in 22nd place out of 82 countries around the world (and in by far the best place among Latin American countries)3 The lowest inflation rate in Latin America at 1.4% in 2010 GDP $16,000 per capita as one of the highest in the region Export to a global market, not dependable on certain products, such as copper, fruit, fish, paper and pulp, chemicals and wine Member of WTO, familiar with international regulations Spanish is the official language and the common language in Latin America; German and English seem to be quite common as well Religion prevalent Catholic follow by Evangelicals
Con
Political
Economic
Culture
Wine
The world wine consumption is decreasing, especially in the developed countries last few years, e.g. France, USA, Italy; however the consumption emerging countries like China is increasing 3.47 Liter Wine/ person Low ROI due to high global competition, world economic recession and changing (USA) consumer behavior to eat more at home Chilean governments current policies aims to convert Chile into one of the worlds top ten exporters of food products over the course of the next ten years. Chilean wine is well-identified country brand that associates the name Chile with quality and diversity. 4.3%
Strength Chile
1 2
3 http://country.eiu.com/Chile
http://businesschile.cl/en/news/reportaje-principal/investing-chile-are-we-attractive http://businesschile.cl/en/news/reportaje-principal/investing-chile-are-we-attractive