South America GIP

• Santiago
• Buenos Aires
• São Paulo
• Rio de Janeiro

The four-week immersion experience in South America is designed to expose students to the approaches taken by two neighboring countries in dealing with common problems that, in the past, have severely limited the growth of commercial activity. In one country, Argentina, an economic stabilization plan which brought inflation under control has exposed an economy in crisis but now on the road to recovery. In Brazil, the largest economy on the continent, the distribution of wealth continues to be relatively unequal, creating its own set of economic and social problems. Participants will be exposed to the richness of the cultures of both countries and begin to understand their extensive influence on local business practices.

Other themes to be studied include:

• Government Regulation of Commercial Activity
• Establishment of Capital Development Structures
• Privatization Efforts
• Market-Entry Strategies
• Establishment and Regulation of Joint Ventures
• International Trade

SANTIAGO

Despite the effects of a recession in the late 1990s, Chile maintained its reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Growth fell in 2002, largely due to lackluster global growth and the devaluation of the Argentine peso. Chile's economy began a slow recovery in 2003, growing to 5.8% in 2004. GDP growth benefited from high copper prices, solid export earnings (particularly forestry, fishing, and mining), and stepped-up foreign direct investment. Unemployment, however, remains stubbornly high. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the U.S., which took effect on 1 January 2004.

After an introductory lecture on the local business scene, the program will include meetings with executives from some of the most important Chilean industries, including mining and pension fund management. Chile is well known for its winemaking industry, and a highlight will be a visit to a local winery to view their business model and sample the products of the vineyards. A two-day weekend provides plenty of time for the beaches of Viña del Mar, hiking in the Andes Mountains, or enjoyment of the city's active nightlife. A reception with local Wharton alumni is planned.

BUENOS AIRES

The program begins in Buenos Aires, the "Paris of South America." After introductory lectures at the Universidad Austral business school, IAE, the program will include meetings with executives from some of the most important Argentine industrial enterprises, many controlled by leading families. Participants also will be given an introduction to financial and consulting firms, to see how local companies and joint ventures have successfully managed to rebuild their enterprises from the depths of economic stagnation. Special emphasis will be put on corporate and governmental fiscal policies, telecommunications, agribusiness, and consulting firms. A two-day weekend provides plenty of time for a day-trip to Uruguay, horseback riding on the nearby pampas, or enjoyment of the city's active nightlife. Home hospitality in the homes of local Wharton alumni is always a highlight of this segment.

SÃO PAULO

The program will continue in São Paulo, one of the largest cities in the world and the commercial center of Brazil. This segment will include meetings aimed at deepening an understanding of the latest commercial and political developments in Brazil. Days will be spent visiting government agencies regulating commercial activity, the stock exchange, leading banking institutions, and several industrial enterprises, including auto and airplane manufacturing. Major topics of study will be foreign direct investment, development of heavy industry, advertising & marketing. The weekend is free to explore the city or to travel to Iguaçu Falls on the border with Argentina and Paraguay.

RIO DE JANEIRO

The final segment of the program will take includes one of the most beautiful cities in the world: Rio de Janeiro. Here the emphasis will be on the well-developed consumer products industry, foreign joint ventures, privatization of former state enterprises and the entertainment industry. Time will be set aside for a visit to a favela, to observe the business environment at the lower end of the economic spectrum.

For information, contact Roxanne Rawson, Director, Global Immersion Programs, 215.89573.4622, roxanne@wharton.upenn.edu