Emerging markets in South

America
SUBMITTED BY: GROUP 7 (SECTION B)
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Submitted to: Prof. R Sugant

Chile
South American country
Has theAndesin the east and the Pacific Ocean in the west
Shares borderswith Peruto its north,Boliviato its northeast,Argentinato its
east, and theDrake Passageto its far south
South America's most stable and prosperous nations
Founding member of:
United Nations
Union of South American Nations(UNASUR)
Community of Latin American and Caribbean States(CELAC)
Macroeconomic data
 GDP
300,000,000,000.00

250,000,000,000.00

200,000,000,000.00

150,000,000,000.00
In Dollars

100,000,000,000.00

50,000,000,000.00

0.00
 GDP per capita, PPP

25000

20000

15000

In dollars
10000

5000

0
 Inflation
600

500

400

300
Percentage

200

100

0
 Unemployment

25

20

15

10

0
 Population

20000000

18000000

16000000

14000000

12000000

10000000

8000000

6000000

4000000

2000000

0
 CO2 emission
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
 Poverty headcount ratio at national poverty lines (% of population)
50
45
40
35
30
25
20
15
10
5
0
Demographics
Population: 1.79 Crores
Ethnic groups: White and Non Indigenous, Mapuche, Aymara, Rapa
Nui,Likan Antai,Quechua,Colla,Diaguita,Kawesqar,YaganorYamana
Languages: Spanish, English, Mapudungun,Aymara,Quechua,Rapa Nui,
German
Religion: Roman Catholic, EvangelicalorProtestant,
Wesleyan,Lutheran,Reformed
Evangelical,Presbyterian,Anglican,Episcopalian,BaptistandMethodist
churches
 Environmental analysis
The country in divided into executive, legislative and judicial branches they have democratic
Political
system
factor The executive branches are directly been voted and elected. They have a bicameral legislature.

Their law was formed in the year 1980 and is been amended several times
Legal This laws are been derived from the Spanish laws
factor

The World Bank has ranked the country as a high income economy and is the stable and prospers
Economical
country among the South American country
factor They have small economy with effective capacity.

The Chile country people are called as Chileans and their official language is Spanish
Socio-
Cultural 756,096 square kilometres or 291,930 square miles.17 million population
factor
 Infrastructure:
The country has the worlds third largest connectivity and they also have good
railway and port facilities
In the Latin America Chile is ranked the highest for market friendly structure.

Chart Title
3500

3000

2500

2000

1500

1000

500

0
 Natural resources
Chile is also country with wide variety of natural resources like most of the country in the world.
They are also rich in various other minerals like gold, silver, coal, iron, kaolin, gypsum, quartz, and zinc, Bentonite,
Selenium and Rhenium.
The country has favourable climate which means they can produce fruits and vegetable all the time

Industry scenario
Manufacturing sector contributes to the growth of the GDP of the country.

Food producing industries, beverage industries, tobacco all this form one-third of
manufacturing industries.

Over the last decade Chile was one of the faster-growing economy in Latin
America
Swot analysis
Resources Quality of Education.
Economic growth Distribution channels
Policies and transportation
Business Dependences of
Quality life resources
Weak political system

Strength
Weakn
ess

Threat Opportuni
ty

Competition Construction
Financial services
Loss of culture Energy supply
Degradation of Mining supply
Resources Free trade agreement
INFERENCE FROM SWOT:

From the above analysis we can see that the Chile has diversified sectors into
which the Indian companies can get into but considering the few external
factors we suggest the below two countries to be the industries which they
can get into.
The Growing sectors of Chile in which the Indian companies can expand into
are the Energy Sector and construction sector.
Other than this two countries the Chile can also get into Food producing
country, timber manufacturing etc.
 PERU

Peru is a country in South America with 25

regions.
The sol is the currency of Peru, 1 Peruvian sol
equals 20.26 indian rupee.
Peru is a developing country with a high human
development index score and a poverty level is
around 27.8 percent
Its main economic activities include
manufacturing, mining, fishing and agriculture.
The total population of peruvian country is
33million in 2016, which includes Amerindians,
Europeans Asians, Africans and also from many
 ECONOMY
The economy of Peru is classified as upper middle income
and in the world it is the 39 largest state .
Peru is, as of 2015 , one of the world's fastest-growing
economies.
the country's economic performance has been tied to
exports, which provide hard currency to finance imports and
external debt payments.
According to 2015 data, 33.3% of its total population is poor,
including 10.8% that lives in extreme poverty.
Inflation in 2012 was the lowest in Latin America at only
1.9%, but increased in 2015 as oil and commodity prices
rose.
The unemployment rate has fallen steadily in recent years,
and as of 2013 stands at 3.6%
GDP per capita PPP in Peru averaged 7713.60 USD from
1990 until 2015, reaching an all time high of 11672.14 USD
in 2015 and a record low of 5140.20 USD in 1992.
 Continued
Employment Rate in Peru decreased to 64.40 percent in
November from 65.10 percent in October of 2016.
Employment Rate in Peru averaged 62.91 percent from 2001
until 2016, reaching an all time high of 66.29 percent in
October of 2013 and a record low of 58.29 percent in August
of 2003.
Unemployment Rate in Peru decreased to 5.80 percent in
November from 6.20 percent in October of 2016.
Unemployment Rate in Peru averaged 8 percent from 2001
until 2016, reaching an all time high of 13 percent in January
of 2005 and a record low of 5.60 percent in December of
2012.
The Personal Income Tax Rate in Peru stands at 30 percent.
Personal Income Tax Rate in Peru averaged 30.00 percent
from 2004 until 2016, reaching an all time high of 30.00
percent in 2005 and a record low of 30.00 percent in 2005.
GDP
 EXPORT AND IMPORT
Exports:
Products: gold, zinc, copper, silver, fish , fruits etc.
Mayor partners: China 19.8%, USA 15.3%, Canada 9.6%, Japan
6.5%, Spain 5.6% and Chile 4.9%.
Imports:
Products: petroleum and petroleum products, chemicals,
plastics, machinery, vehicles, colour TV sets, power shovels, front-
end loaders, telephones and telecommunications equipment etc.
Mayor partners: USA 24.5%, China 13,4%, Brazil 6.3%, Argentina
5.5%, Chile 4.8%, Ecuador 4.7%, Colombia 4.8%.

Natural Resources
Mining: is the no.1 industry in Peru, it is the largest producer of metal in Latin
America.
Agriculture: is the 2nd largest industry in Peru. It has good source of fertile land
and weather to grow different plant, potato so on. Peru also has Lama Alpaca
textiles industries.
Cultural Heritage and Tourism: Peru has many historical sites like Machu Picchu,
Cusco, Sacsayhuaman.
Industrial Scenario
The country is the fastest growing economy with the low inflation . they also
have a favourable external environment , a strong growth in employment
opportunity. There should be reform in the policy of the country so that it can
have sustainable , high and equitable growth .
Infrastructure:
The country has a poor infrastructure and the countries government need to
work on it. Recently the country passed certain laws to encourage the
infrastructure and improve it .
Swot analysis
Strength Weakness

Natural resources
Natural resources dependent
Cultural heritage economy
Insufficient
infrastructure
High poverty and
unemployment

Opportunitie Threat
s
Socio economic
Tourism growth stability
Attractive to
investor
 COLOMBIA
Colombia which is officially the Republic of Colombia, is a
transcontinental country situated in the north western coast of
South America

The growth of Colombia has been increasing from the year 2001 to
2013 where it grew with an annual growth rate of 4%

The third largest economy in Latin America now

Strong trading relationship with United States and has abundant

natural resources including oil, coal and nickel
MACROECONOMIC DATA

Source: IMF World Economic Outlook Database2016

DEMOGRAPHIC
 Environmental analysis
Republic government with the powers separated into executive, judicial and legislative
branches
Political Challenges within the country are high crime rate, drug trafficking and heavy
dependency on oil export

Mainly driven by the private consumption and exports

Principal trade partners are United states, India, china, the European union and some
Economic
Latin American countries

One of the 17 mega diverse countries

Socia- Diverse traditions within the regional culture with a broad range of distinct groups
cultural

Based on the civil law

Legal Foreign investments are allowed in all sectors of the economy
INFRASTRUCTURE
Creating new opportunities to build and operate public infrastructure projects
Encouraging utilization of private capital for the provision of public goods and
services by providing additional comfort to lenders.

NATURAL RESOURCES
Colombia stands out of OPEC and is a longtime producer and
exporter of oil and gas
The countrys power generation is mainly from hydroelectric
sources
Past 10 years the country has produced between 50% -90%
of the worlds total emerald market
 WEAKNESS:
STRENGTHS: Sensitivity to raw material
prices and the American
economic cycle.
Access to two oceans i.e. Road and Port infrastructure
ATLANTIC and PACIFIC oceans. deficiencies.
Large Population (nearly 50 Drug trafficking.
million).
Healthcare sector is not so
Abundant natural resources developed.
(agricultural and mineral).
Legislative, judicial and
Has large potential for tourism administrative delays,
Economic policies which will corruption.
attract investors SWOTStructural unemployment,
Institutional Stability. poverty and inequality
OPPURTUNITIES: THREATS:
It has a strong banking system. Rebel forces unstable
Free trade Policy.
Literacy rate which is 91.4% for male Rate of Taxation
government
Security .
threats from
Infrastructure Sector.
and female.
Colombians Black market.
Manufacturing.
Service sector
INFERENCE AND
RECOMMENDATIONS
Colombia is effectively looking for outside interest in the accompanying parts:
agribusiness, infrastructure, assembling and service sector.
There are a few free trade zone administrations all through the nation that
permit critical motivating forces for organizations
There is a solitary 15% wage impose rate and no custom value added tax
(VAT) or obligation charge
Based on the above analysis industries from infrastructure, agribusiness and
service sector from India can enter into Colombia
GMR Groups through merger
Thank You