The Economic Environment in Chile Essay - 1083 Words

1.0 Introduction Chile is located in South America and is one of the longest countries in the world. It is located south of Peru and west of Bolivia and Argentina with a population of about 17.46 million people. Chile is quite well known for international trade. It was ranked 18th out of the 49 most competitive economies in the world by the 1996 World Competitiveness Report which was publishes by the International Institute for Management Development in Lausanne Switzerland. The official language of Chile is Spanish. However, many well – educated business persons speak English. It is an ideal international market to enter for Alvernian; a manufacturer of leisure and gym wear. The economic environment, cultural environment, political –†¦show more content†¦The goal of Alvernian should be to enlarge its business and venture out to become a global company. Chile is a great place to enter the international market for Alvernian leisure and gym wear. As a global company, Alvernia sho uld aim to create a single company culture and processes that are used globally to create the most efficient global organisation. â€Å"Benefits of going global include a better economy of scale and diversity in markets means more financial stability, a competitive advantage for a multinational company, new approaches which can be further utilized.†(IN TEXT FOR PARAPHRASING) 3.2 Operations Management Operations Management refers to the management of the design, execution and control of operations which then turns resources into tangible goods and / or services. Global sourcing is a major part of operations management. Businesses should try to find the cost efficient location to manufacture their goods. If manufacturing, delivery and wages of employees are cheaper in a certain country, operation facilities should be located at the country to save money. Operations management is also in charge of researching and developing new ideas to sell. 3.3 Finance Management One thing that should be considered before venturing into the international business market is finances. International business involves trading and earning profits through the exchange of foreign currency. Chile’s currency is in pesos while theShow MoreRelatedBusiness Economics : An Important Effect On Business1595 Words   |  7 PagesIn recent years, the globalization has faced with a multitude of economic, social and environmental crises which these situations have had profound impact on business by threatening the well-being of present and future business economics. 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