The Anticipated Revenues, Net Income and Growth Rate after Entering the Chilean Market - Case Study Example

Market Entry Project for CVS in Chile (as a Joint Venture) Introduction Our focus is laid on introducing an integrated pharmacy service provider to a potential foreign market. The purpose of the business is dedicated to selling prescription drugs as well as a wide range of general merchandise including over-the-counter drugs, beauty products and cosmetics, film and photo finishing services, seasonal merchandise, greeting cards and convenience foods. Along with this comes an online shopping portal, which also features an online prescription fulfillment system. The target market for CVS Pharmacy stores consists majorly of women (16-64) and people with medical needs. The countries in consideration are taken from the Caribbean and Latin America covering Mexico, Brazil and Chile. Mexico Mexico, which is located beside Belize and Guatemala and is 3,141 km from the U.S., is the country in Latin America. In the region of Latin America, Mexico can be regarded as the medium size country and market. Considering the FDI of CVS, we focus on people and society, government, and economy. The population of Mexico is 113,724,226 until July 2011, and the country comparison to the world is 11 (CIA - The World Factbook). Mexico has a high population growth rate which is 2%. In the whole country, 28.2% of the population is between 0-14 years, 65.2% is between 15-64 years and 6.6% is 65 years and over. The median age of Mexico is 27.1 years, for males is 26 years and for females is 28.1 years. The Urban population is 77% in 2008, 78% in 2009 and 78% 2010, which is increasing now. The poverty rate is 47.0% in 2004, 42.6% in 2006, and 47.4% in 2008. What’s more, the labor force of Mexico is 46.99 million in 2010. We can see that Mexico has a large population and the biggest part of Mexico’s population is young adults. People trend away from suburban to urban because the urban population rate is increasing. On the other hand, the poverty rate of Mexico is fluctuant, which shows the economic situation is fluctuant too, and in these years, the poverty rate is decreasing. Mexico has civil law system with US constitutional law theory, so CVS Caremark is familiar and legal system of Mexico causing smaller barrier for CVS to enter this market. And according to the World Audit, the Democracy Audit scores of the political rights and civil liberties are 2 and 3; this means the political policy of Mexico is relatively free. Moreover, the political policies that Mexican government takes on healthcare industry really influence the pharmacy industry in Mexico. Mexican government tends to extend the healthcare services and will expand the insurance coverage to 102.0 million in 2011. Seguro Popula is introduced to increase the available resources of healthcare and cover 50.0 million people in 2011. This reform really attracts substantial foreign companies and investments to enter Mexican pharmaceuticals market. It is a great opportunity for CVS Caremark to make an entry to Mexico. The GDP of Mexico in 2008 is $1.582 trillion, $1.486 trillion in 2009, and $1.567 trillion in 2010. What’s more, the GDP per capital has the same tendency as GDP. The GDP per capital in 2008 is $14.400, in 2009 is $13,400, and in 2010 is $13,900. Another important part of the data about the economic situation of Mexico is CPI. According to Countries and Economies, using 2005 as the basic year, the CPI of Mexico is 104 in 2006, 108 in 2007, 113 in 2008, 119 in 2009, and 124 in 2010. The inflation rate of Mexico in 2009 is 5.3% and in 2010 is 4.2%. What’s more, the total labor force of Mexico is 46.99 million in 2010. Of that 46.99 million, 13.7% was occupied by agriculture, 23.4% was occupied by industry, and 62.9% was occupied by services (CIA - The World Factbook). In general, the data shows the economic downturn in 2009 of Mexico, both GDP and GDP per capital were decreased in 2009 and the inflation rate of Mexico in 2009 was also very high. In 2010, the economic situation in Mexico became better because the raising of GDP and GDP per capital. What’s more, by looking at the labor force by occupation, the largest industry should be service. In the worldwide economic environment, the exchange rate of Mexican pesos per U.S. dollar is 11.016 in 2008, 13.514 in 2009, and 12.687 in 2010. The most significant thing is that Mexico has free trade policy with the U.S., and its top three import partners are U.S., China and South Korea. According to Countries and Economies, the import rate of U.S. is 60.6%, China is 6.6% and South Korea is 5.2% in 2010. The average annual growth of imports of goods and services of Mexico is 3% in 2008, -18% in 2009 and 19 in 2010. Imports commodities are including metalworking machines, steel mill products, agricultural machinery, electrical equipment, and car parts for assembly, repair parts for motor vehicles, aircraft, and aircraft parts. We can get the conclusion easily that the free trade policy really benefits Mexico import from the U.S. The annual growth, which is very import, has decreased in 2009. The reason why there is a significant depression is international financial crisis, influence of influenza A virus subtype H1N1 and numerous incident of violence. Brazil Brazil is the largest country in South America; it shares boundaries with every South American country except for Ecuador and Chile. It is a Federal Republic and they’re legal system is based on the civil law. A big issue that Brazil is currently facing is deforestation because it is destroying and endangering different types of plants and animals that are indigenous. They also face high air and water pollution in several of their large cities because of the improper mining activities and the sever oil spills. The poverty rate in Brazil is 21%, which is in the middle of the three prospects. That is relatively high but it is not as high as Mexico (47%). According to Countries and Economies, urbanization rate is 87% which is pretty high; in fact it is only 2% lower than Chile’s urbanization rate. Out of the three Brazil actually has the highest primary school enrollment (128), this has positive effects on labor sourcing because the more educated the better the skill becomes. With the high annual labor force growth that Brazil has (1.80%), and the high number of primary school enrollment, the combination of the both is something positive in Brazil. Brazil has the fifth highest popularity in the world (203,429,773). The majority of Brazilian popularity is ranged from the age of 15-64 years old, and it has a lowest majority of people ranging from the age of 65 years old and over. This makes sense because the life expectancy there is 73 years old. A good way to gain market share would be to target the people aging from the age of 15-64. With the 1.13% population growth rate, it would also be a good idea to segment some of the products towards people aging from 0-14 since it is the second highest majority in Brazil. According to Countries and Economies, the GDP per capita is $10,800, a relatively low GDP compared to Chile; this could affect the performance of CVS in a negative manner. There is a big difference between the rich and the poor because the highest 10% of house hold incomes have 42.5% and the lowest 10% have 1.2%. This shows how the richest are very rich, and the poorest are very poor. Something that might impact the business negatively is the fact that services are the highest labor occupation in Brazil (66%). CVS is a service retailer and therefore competition with other service providers in Brazil could be high. The US is the highest importing partner with Brazil and makes it easier to import goods into Brazil. Chile Chile is located between Argentina and Peru bordering the South Pacific Ocean. It is easy accessible for transportation due to its great exposure to the Pacific Ocean; however it has a longer transportation distance than Mexico and Colombia. The fact that Chile’s Capital Santiago de Chile has no direct access to a port will put some financial burden on the company due to required inland transportation. Chile and Colombia both face the challenge posed by The Andes Mountains, one of the most elevated and longest mountain ridges worldwide by having to deal with greater difficulties when it comes to inland transportation and logistics. The country currently faces some environmental issues, having to deal with widespread deforestation and mining, which threaten natural resources. On top of that there is some air pollution from industrial plants and vehicles and water pollution from raw sewage. According to Countries and Economies, Chile has the lowest poverty percentage of all three prospects with 15%, which indicates a broad middle and upper class and is very useful in terms of acquiring the desired target market. Another great aspect to this is the high urbanization rate of 89%. It shows a high primary school enrolment of 106:1 children this figures compares very well to ones projected by well-developed countries. The country also has a constant labor growth which a current percentage of 2.1%. Both the high school enrolment and the labor growth make it easier to acquire work forces foe the enterprise. The population is rather young with 67 % of 15 to 64 year olds with a male to female ratio of 1:1. This ties in well with the pre-existent target market of CVS Pharmacies. It grows by a rate of about 1% per year and has the life expectancy of 77.7 years. Chile’s government is a republic, which is a great benefit for a corporation like CVS. It is more democratic and freer which helps for international businesses to succeed without the country pushing its economy to be as independent as possible. Also, it follows civil law, which is basic and will not cause more extensive barriers and difference between the legal system there and here in the USA. According to Countries and Economies, Chile’s economy is not the biggest one to enter yet it still does hold some great characteristics. The GDP per Capita is a high $15400 in comparison to Brazil’s $10800; this is just one good aspect about the economy. Also, the household income’s lowest 10% is 1.5% and the highest 10% is 42.5%. Socio-cultural issues CVS Pharmacy offers a wide range of products from pharmaceuticals to general merchandise, which appeals to a wide demographic. However products such as medicine or beauty related merchandise is relatively price intensive thus limiting the target market to middle and upper class. None of our prospects has given any evidence of cultural imbalances or issues, which would harm the market entry. However it is very important to consider culture specific mannerism when entering a new market along with the way of doing business in this country. Latin American people have a very affectionate and warm side to them. They tend to have a closer proximity when it comes to leading a conversation. According to Chile - Language, Culture, Customs and Etiquette, there are some minor differences amongst the countries in Latin America concerning the formality of meetings. Depending on what country is at hand business meeting might become informal and is conducted in a calm and dignified atmosphere. The countries in consideration however have a very formal and conservative social background. Brazilians are always open to new ideas but don't deal well with criticism that, most of the time, is taken personally and not perceived as directed to the executed task. Mexicans avoid directly saying “no.” A “no” is often disguised in responses such as “maybe” or “We'll see.” You should also use this indirect approach in your dealings. Otherwise, your Mexican counterparts may perceive you as being rude and pushy (Brazil: Culture. Global edge). The Chilean society can be a very formal, and it is considered important to keep any business cards you receive in excellent condition. Investing in a card case will be helpful in ensuring that your cards stay well preserved. Moreover, when you are presented with a card, it creates a better impression to place it in a special case, rather than hastily into your back pocket--these distinctions will be noticed (Chile: Culture. Global edge). In Latin America the common religion to take part in is Catholicism. Brazil, Mexico and Chile all practice Catholicism. This leads to a very high collectivism, which also explains the why most businesses are owned by families. Tradition and the importance of the group are very high valued in these societies. Jobs get passed on from father to son, people go to church service together and sometimes it is even more important to fit into a group than performing well in your job. Chile’s foreign-investment regime—one of the most liberal in the world—has been in place for three decades. Based on the principle of non-discrimination between local and foreign investors, the latter can sign formal contracts with the state that guarantee them access to foreign exchange at the best market rate for repatriation of capital and profits. Investors also enjoy additional protection as a result of the rapidly expanding network of investment-protection accords and double-taxation treaties signed with other countries. Political and Legal Issues The nature of a political system and its stability is crucial to the success of a market entry. It makes is barely possible to enter a market if a government is ruled by a communist totalitarian party and then even more conducting business if the entry succeeds. Differences in legal systems can also lead to difficulties, since the country will be subject to the host countries laws and regulations. Up to a high degree familiarized legal system would eliminate this issue and also extensive knowledge about the different cultures if the cultural differences were too vast. Political Developments can greatly influence production, transportation, wages, unions etc. Government policies can limit new competitors from entering industries through licensing requirements, restrictions on access to raw material, product testing regulations, etc. Products sold by CVS Pharmacy can also be subject to regulation. Therefore it is crucial to know the regulations associated with the business and what kind of licenses need to be acquired for the specific business model. Long Gideon states that it is also important to test the limitations of these licenses by geographical position and time of renewal. Economic Issues Economies of scale occur when the unit cost of a product declines as production volume increases. This will leave a new entering company with two options either enter the market on a large scale or competing in small scale accepting some deprivation. Proprietary technology, favorable locations, government subsidies, good access to raw materials, and experience and learning curves may all factor in when it comes to make a decision. Furthermore it is important to gain access to channels of distribution. In many industries, established competitors control the logical channels of distribution through long-standing relationships. In order to convince distribution channels to accept a new product the new entrant must oftentimes provide incentives in the form of price discounts, promotions, and cooperative advertising. Barriers like this can harm a successful market entry. Economic issues can also occur when market growth has decreased of the past year and is limited when it comes to future forecasts. Therefore research has to be done on analyzing market size and growth potential. Currency Issues such as a high inflation rate can also have a negative effect on the performance of the company. Chile shows stagnating growth for the future, which is not favorable. However there still is enough growth potential to make the business lucrative. 6. Form of Market Entry According to Countries and Economies, the form of our market entry is joint venture, which is full of opportunities and risks. Our target company of our joint venture strategy is Farmacias Ahumada, which is a developing Chile local pharmacy. In 2010, the sales revenue of Farmacia Ahumada is 317,657,000 and the sales growth rate is 18.6%. What’s more, Farmacia Ahumada already has 360 pharmacies in Chile, which is also looking to expand in the future. In 2010, there are 107 new-blown pharmacies and 16 closures. On the one hand, there are many reasons that we choose Farmacias Ahumada as our joint company. Firstly, Farmacias Ahumada and CVS Pharmacy are similar company and they have homogenous philosophies, which reflect in that both of them have their own generic brands and both of them want to expand or start new business in Chile. Secondly, the joint venture of Farmacias Ahumada can take advantage on innovating new technological skills and combining preexisting resources, such as product lines, expert staffs and distributing channels. Thirdly, Because Farmacias Ahumada is a Chile local company, so all of resources are benefiting CVS Pharmacy, which makes it easier to entry in new geographic markets. For example, CVS Pharmacy can use the well-established infrastructure directly. Finally, the most significant benefit is that Farmacias Ahumada can share risk with CVS Pharmacy. On the other hand, as for disadvantages, there are 60% of all joint businesses worldwide end up in failure. We notice four main reasons of failure. The first one is that it is hard to establish a healthy relationship between two joint companies. The second reason is that two companies always have different and unclear goals. The third one is that two companies maybe have imbalance of investment level, expertise and assets. The last reason is might be a lack of integration due to different management styles. By dealing with these risks, we think out a five point strategy (Countries and Economies). Firstly, we focus on negotiations, which help our two companies have more communication opportunities to reach an agreement. Secondly, we should develop new combined business strategy and integration framework. This strategy makes us cooperate more effective. Thirdly, we will launch four new stores in Santiago de Chile to test our joint. Fourthly, we will control our joint and brands and do some expansion. As for the last strategy, we will do maintenance to keep our joint and make more profit and get more market share. In our three-year plan, we will open four new stores in Santiago de Chile in the first year. In this year, we are going to some research and develop our market strategies. At the second year, we plan to open 50 stores to finish our first expansion step. At this year, we will focus more on market share than profit. At the third year, we will double the size. By the ending of the first two year, we could through the training-in with our joint company and have a mature market strategy. 7. Marketing Mix Considering about the marketing mix, we will think highly of all of these factors including adjusting price, produce adaptations required, selling points and promotion. Because we plan to use the joint venture strategy with Farmacias Ahumada, what’s more, Faimacias Ahumada is similar with CVS Pharmacy. The two companies have similar product line, such as prescription drugs and a wide range of general merchandise. Thus, our new joint company will selling product as before and focus more on innovation. It can be a really good opportunity to combine these two companies’ technology skill together to innovate products that satisfy the needs of customers. We will also adjusting our price. Because our primary goal of the first two years is to gain more market share, so we will decrease our price appropriately. What’s more, because Farmacias Ahumada is a local pharmacy, so we will adjust the price by considering the price of goods in Farmacias Ahumada. Finally, because CVS Pharmacy has an online shopping portal, which also features an online prescription fulfillment system, so we will also take this advance when we enter Chile market. As the expansion plan that we discussed before, we will open four new stores in Santiago de Chile in the first year. The reason why we choose Santiago as our first selling point is that Santiago is the capital city of Chile. What’s more, “it concentrates 48 per cent of Chile’s Gross Domestic Product and its economy grew even more rapidly than the national economy – with an average growth rate over the past decade of 8.5 percent. The population of Santiago is 5,003,455 which is one third of the total population of Chile, which are16, 888,760 (Dockemdorff Eduardo, Rodriuez and Winchester Lucy. Santiago de Chile: Metropolization, globalization and Inequality). Santiago also has the highest urbanize ratio. After the first four stores we are just going to spread out around Chile along with the already existing stores with the eventual goal to take them over and avoid competition within the company (Population of Santiago in 2011). Considering about the transportation in Chile, there are 55 airports in total and 79,814 kilometers highways in total, which covers most of cities. In Chile, the load of all merchant marine is 1,016,892 Dwt (deadweight ton). As for shipping, the container port traffic is 1,813,173 TEU (Port container traffic measures the flow of containers from land to sea transport modes, and vice versa, in twenty-foot equivalent units (TEUs), a standard-size container. Data refer to coastal shipping as well as international journeys. Transshipment traffic is counted as two lifts at the intermediate port (once to off-load and again as an outbound lift) and includes empty units. What’s more, there is also a high level freedom of speech and of the media (South America Chile Transportation). “The constitution provides for freedom of speech and of the media and this is generally respected by the authorities. The media maintain their independence criticize the government and cover sensitive issues. Media rights group Reporters without Borders noted in 2007 that Chile had a good name for press freedom but added that the police and military ‘have not lost repressive habits left over from the military dictatorship (Chile). ” For these reasons, we decided Santiago as our primary selling point and then expand to whole Chile market. As for the promotion, our company will use both pull strategy and push strategy. We will use a pull strategy when we first enter Chile. On the one hand, we will use advertising and mass media. “Chile's national and local terrestrial TV channels operate alongside extensive cable TV networks which carry many US and international stations.” What’s more, radio is an important source of news and information (Chile). Besides, there are hundreds of stations most of them commercial. On the other hand, word of mouth referrals is always the most efficient way to transfer our positive information (Chile). “After a scandal over alleged price-fixing, Chile’s pharmacy chains are in the firing line.” What’s more, UNFACH’s Alvarez says there are around 520 such pharmacies in Chile and estimates that “300 of them are in a precarious financial situation” (Long Gideon). So people need a reliable pharmacy brand to trust on and this is what we try to be (Long Gideon). After us opening the first four stores, we will win people’s good reputation, and by word of mouth referrals, we will gain a large market share. Farmacia Ahumada Table2: income statement Currency in Millions of U.S. Dollars As of: Dec 31 2007 Restated USD Dec 31 2008 Restated USD Dec 31 2009 Restated USD Dec 31 2010 USD Revenues 1,828.0 1,739.0 1,635.8 1,577.1 TOTAL REVENUES 1,828.0 1,739.0 1,635.8 1,577.1 Cost of Goods Sold 1,401.0 1,334.2 1,249.4 1,188.4 GROSS PROFIT 427.0 404.8 386.5 388.7 Selling General & Admin Expenses, Total 389.8 146.7 151.9 144.2 Depreciation & Amortization, Total 1.0 29.3 29.5 29.3 Other Operating Expenses 0.3 198.7 183.5 198.0 OTHER OPERATING EXPENSES, TOTAL 391.0 374.8 365.0 371.5 OPERATING INCOME 36.0 30.0 21.5 17.2 Interest Expense -9.3 -14.0 -14.9 -13.7 Interest and Investment Income 2.3 2.5 10.6 2.4 NET INTEREST EXPENSE -7.0 -11.5 -4.4 -11.4 Income (Loss) on Equity Investments 0.0 0.5 1.4 0.4 Currency Exchange Gains (Loss) 1.5 -4.3 1.0 0.8 Other Non-Operating Income (Expenses) 0.0 -11.5 -5.8 -14.8 EBT, EXCLUDING UNUSUAL ITEMS 30.5 3.3 13.7 -7.8 Gain (Loss) on Sale of Assets -1.4 -2.0 -- -- Other Unusual Items, Total -- 0.1 0.4 0.4 EBT, INCLUDING UNUSUAL ITEMS 29.2 1.4 14.1 -7.4 Income Tax Expense 8.0 4.4 1.5 -3.3 Minority Interest in Earnings -5.2 -0.4 -0.4 -0.3 Earnings from Continuing Operations 21.1 -3.0 12.5 -4.1 NET INCOME 15.9 -3.4 12.1 -4.5 9. Conclusion: Owing to joint venture with local company Farmacia Ahumada (FASA) in Chile, we analyze the anticipated revenues, net income and growth rate that CVS can get after entering the Chilean market based on the financial reports in 2010 of Farmacia Ahumada and CVS. About three year projection to expand the Chilean market, as mentioned in the market mix part, at the first year, we made test-phase that 4 new stores will be open in Santiago de Chile. To be honest, the cost of these four new stores is a little thing because before join venture Farmacia Ahumada is also planning to expand its market and open new stores. So what CVS should do is to take advantages of the preparation work Farmacia Ahumada has done and make corresponding adjustments such as the layout of products in store to have more CVS’ own characteristics. Of course, the expense of ads at the first year is really a big deal. According to CVS’s and FASA’s annual reports, we decide to add 2 percentage of income to spend in advertisements and mass media to build the awareness of corporation of CVS and Farmacia Ahumada and increase brand quality or loyalty. Thereby, at first year, we expects to get $3,507,032 operating income and lose $107,911, of course, these numbers can not be exactly accurate we get these numbers based on previous data and estimation. We divided the revenue by the number of stores and then calculated the overhead per square foot and scale it up to the size of an actual CVS store. For the expenses it was the same but we put another 20 percent on top of that. We have confidence to success in first year’s test-phase and then we decide to open 50 stores at the second year and open 100 stores at the third year. With the local experience, CVS is more familiar to local business environment and management styles of both companies are more compatible. In addition, more detailed information will be demonstrated on table of 3-year financials. 8. social/ethical/environmental impact of your proposal After choosing the mode of entry and adjusting the marketing mix, it is time to consider then impact of social, ethical and environmental specific issues when entering a Chile pharmacy market. Even though along with the local company Farmacia Ahumada(FASA), CVS can be more quickly to be familiar with and master the local market, some potential issues still should be considered about. Firstly, as mentioned above, the family occupies an extremely important position in Chilean lives and it is common that family and business are intertwined. Moreover, nepotism is pervasive and not regard as a negative concept (kwintessential, 2010). It is really different from US’s relationship between and family. Obviously, it is not beneficial for CVS to implement its management of employees. To solve this problem, CVS can train its local employees or send US managers to Farmacia Ahumada /FASA to gradually change the style and concept of operating style. Secondly, after CVS make joint ventures with Farmacia Ahumada, the situation of the Chile pharmacy market will begin to change. Until now, 70% of market shares are dominated by three leading pharmacy Salco Brand, Cruz Verde and Farmacias Ahumada, besides, these three chains also control 80% of drugs distribution in Santiago, Chile’ capital. Among these three chains, Cruz Verde is the largest one. However, after the proposal of CVS, FASA can get financial help of CVS and achieve its goals of expanding market but share risks with CVS. Moreover, cooperating with CVS, FASA will not only gain international experience but also can gain market share through CVS’ products especially large innovative drugs (Long, 2009). However, obviously, if CVS takes the proposal, Cruz Verde will fight back. The pharmacy will be more competitive and CVS also face the possibility of failure of the joint venture and may not prepare for the future of head-on conflicts. Thirdly, since the scandal of Collusion that three main pharmacy chains colluded to increase the prices of over 222 medicines, customers could not trust the local pharmacy chains and showed little loyalty to them. Some people may argue is not a good time for foreign companies to enter in Chilean pharmacy market because its unstable prices of drugs and price-sensitive customers, but we think it is an opportunity for CVS to make an entry. CVS is an international big pharmacy company and it is famous for its drugs quality and medicine services. So when CVS, a big company with good reputation, it is believable for them to capture attraction of local customers and help Farmacia Ahumada rebuild the image and gain the trust of customers. Conclusion Another significant part of our research is based on the democracy rank, press freedom rank, and the corruption rank. After intensive research, we came to the conclusion that initiating CVS in Chile is the most favorable choice. In comparison to Brazil and Mexico, Chile’s democracy is rather high, thus, reducing the business’ barriers to entry. Other than the democracy’s affect on initiating a business, press freedom served as a very component that fueled our decision-making process. Chile’s high rank -“39”- globally in the press freedom rank permits us to expand CVS amongst the country will little intervention. A crucial issue that arises with business creation is a country’s corruption. Since many countries in South America suffer from high rates of corruption, this hinders innovation and confidence. There is little incentive to follow a path ending with a distinctive dead-end. Through our research, we found that Chile’s corruption is rather low, as apposed to Mexico and Brazil. Furthermore, after much pensive research and critical analysis, we came to the conclusion that CVS will be best located in Chile. Also, from the (World Audit Democracy Profile), we managed to gather information about the economic freedom in Mexico, Brazil, and Chile. Chile ranked was ranked first at 11, followed by Mexico at 48 and lastly came Brazil at 70. This is another significant piece of information when planning a market entry project. For example, although Brazil has a giant population that will allow a broader project, it is not as free and easy to maneuver into its economy as it is to enter Chile’s economy. According to the Market Potential Index (MPI) Chile from all three countries has the highest market growth rate of 13 and respectively the highest Market intensity and Consumption Capacity. It also provides the company with a well developed commercial infrastructure which is beneficial when it comes to establishing a new market entry. The degree of economic freedom is set at 100, which represents the highest worldwide. Economic freedom is very a very desirable attribute of a prospective country. Overall we can say that Chile has the best accumulation of factors which have the potential for a successful market entry. Works cited Brazil: Culture. “Global edge.” Michigan State University. 2011. Web. 9 Dec., 2011. Chile: Culture. “Global edge.” Michigan State University. 2011. Web. 9 Dec., 2011. "Chile - Language, Culture, Customs and Etiquette." Professional Translation Services | Interpreters | Intercultural Communication & Training. Kwintessential. 2011. Web. 9 Dec., 2011. "CIA - The World Factbook." Welcome to the CIA Web Site — Central Intelligence Agency. 2011. Web. 9 Dec., 2011. “Countries and Economies.” The World Bank. 2011. Web. 9 Dec., 2011. “Chile” Taj Pharmaceutical Limited. 2009. Web. 9 Dec., 2011. Dockemdorff Eduardo, Rodriuez and Winchester Lucy. Santiago de Chile: Metropolization, globalization and Inequality. Environment & Urbanization Vol 12. 2000. Web. 9 Dec, 2011. Long, Gideon. "Chile’s Pharmacy Industry." Business Chile Magazine. 2009. Web. 9 Dec., 2011. . Long Gideon. “Chile’s Pharmacy Industry.” BUSIness Chile. 2009. Web. 9 Dec., 2011. Mexico: Culture. “Global edge.” Michigan State University. 2011. Web. 9 Dec., 2011. “Market Potential Index” 2011. Web. 9 Dec., 2011. < http://globaledge.msu.edu/> “Population of Santiago in 2011.” True Knowledge. 2011. Web. 9 Dec., 2011. "The Outlook for Pharmaceuticals in Latin America." Pharmaceutical & Medical Devices-Espicom Business Intelligence. Espicom, 2011. Web. 9 Dec., 2011. “South America Chile Transportation.” Nationmaster. 2011. Web. 9 Dec., 2011. "World Audit Democracy Profile." WorldAudit.org Home Page. 2011. Web. 9 Dec., 2011. Read More