Location: Southern South America, bordering the South Pacific Ocean, between Argentina and Peru

Capital: Santiago

Population: 15,980,912 (July 2005 est.)

Language: Spanish in the official language of Chile.

Lifestyle & Aspirations
Chileans regard themselves as civilised, literary and well-versed in the arts. Chile has produced two Nobel Prize winning poets, Gabriela Mistral and Pablo Neruda. Mistral had the added distinction of being both the first Latin American and the first woman to win the award. There is a lot of indigenous music and dance, too.
On weekends, many Chileans go to church, meet relatives, watch movies, shop and go dancing at night. Chileans go skiing in the winter and to the beach in summer. Domestic tourism is very strong and Chileans typically vacation in the lakes to the south and the beaches in the north and the centre. There is a strong interest in foreign travel, particularly to Europe and North America, but many Chileans have never left the country.
Chile has a distinctive cuisine which is not based on chillis, contrary to popular belief. People enjoy eating out, particularly in the many seafood restaurants along the beaches, or holding big family gatherings at home, often involving an asado (barbecue). Heavy drinking is not part of this culture.
Music plays a big part in the social scene, both imported and local. There are several big music festivals throughout the year. Chileans also watch a lot of television and to outsiders, appear obsessed with soap operas, or telenovela.
Popular sports include football, golf and tennis (although these are mainly played by the upper classes), horse riding, skiing and basketball.

The Essentials (10 Key Tips)
1. Make a special effort to be accepted by the group, rather than asserting too much individuality.
2. Friendship and personal relationships are key to doing business; take time to build rapport with your counterpart.
3. Family members, friends and connections are known as pitutos and will be called on for favours. Pitutos are the key to business success.
4. Business entertaining is commonplace and important and a lot of it takes place in the home.
5. Presentation is everything: dress smartly, accessorise tastefully, speak eloquently and show you are prepared!
6. In any group, establish who is the leader. Decisions are made from the top so deal with the most senior person you can access.
7. Conservative values prevail in politics, economics, and social attitudes. Honesty and integrity are highly valued. A sense of humour is appreciated, although for the most part, meetings remain intensely focused and serious.
8. Chileans are very patriotic. Admiring the country, its beauty and economic success and expressing sympathy for its problems will be appreciated.
9. Be aware that Chileans tend to have an inherent sense of courtesy that sometimes causes them to say what they think they want you to hear, rather than give a candid response.
10. Chileans can be curiously self-deprecating, going on about how lazy and disorganised they are.

Working with the Chileans
Most foreigners find the Chileans extremely pleasant to work with. Although they come across as serious and formal in comparison to other Latin Americans, they place great value on friendship and loyalty and can be highly entertaining once a bond has been established.
Building relationships is absolutely essential and business entertaining is commonplace.
People genuinely care for one another; if someone recognises you in the street, they will always stop to greet you and enquire after your family. Failing to acknowledge politeness like this is a serious faux pas.
In business, Chileans are keen to learn and are relatively straightforward negotiators. They are very much inclined to do things at the last minute. Chileans work well in teams provided people's individuality is recognised. They can be reluctant to take responsibility and many will be content to be led rather than take risks and stand out from the crowd. Although Chileans are ambitious, there is an acceptance of the rather rigid class structure, which makes social mobility difficult, although this is changing as a generation of 'new money' grows up.

Making a Good Impression
Make a good impression by fitting in. Dress smartly and use good manners all the time. In a group, greet everybody with a handshake or if you are a woman, a handshake or kiss on the cheek. Every member of the group must be greeted personally.
Learn the correct use of 'Usted' and 'tu'. Understand the importance of relationship-building and cultivating pitutos(connections). Also learn to understand the relevance of the Chilean class system, however alien it may seem to you.
Do not compare Chile to Argentina - Chileans are strongly patriotic. Do not ask too many personal questions and don't talk about work all the time. Discussing the beauty and success of Chile, family matters and world events is more important. Try to show interest in others and to find common ground; family is almost always the opener of a conversation between friends and colleagues.
Remember that Chileans are very polite and saving face is important to them. Do not deliver negative points or bad news too bluntly.
Do not haggle and bargain and never sell something without issuing a receipt; this is illegal.

Business Etiquette
Gift giving
Gifts are not expected in a business context until the relationship is especially close, and even then they are more appreciated than expected.
If you are invited to someone's house for dinner, flowers or chocolates are always appreciated. You should have the flowers delivered in advance, avoiding any that are yellow, purple and black. Remember to enclose a card.

Business cards
It is not really necessary to have Spanish business cards unless you've got a particularly complicated and technical title. Chileans will easily understand 'vice president' or 'manager'.
Cards are exchange frequently, so bring a big supply. Smile and shake hands while presenting the card. Store your cards and those you are given in a card case, not your pocket. Chilean society is polite, and other people's cards must be treated with respect.

Body Language
Chileans tend to converse in closer physical proximity than non-Latin cultures may be used to. You need to get used to this - moving away can make you appear cold. People will also stand uncomfortably close while waiting in line (if they haven't cut the line) and on public transport.
Holding your hand palm upwards with fingers curled is an obscene gesture. Yawning without covering your mouth is considered very rude.

Communication style
Chileans are indirect communicators in many ways; there is a tendency to say what they think you want to hear. There is also a strong desire to please. Conversely, they can be exceptionally direct and it is quite normal for friends to make negative remarks about one another's appearance.

Business Meeting Culture
Planning a meeting
In Chile, meetings are often not for decision-making but about exchanging opinions and collecting information, and for strengthening interpersonal relationships. In fact, important decisions can often be made at the casual dinner table after the meeting. So if you want to set a rigid agenda, do not expect it to be followed.
In order to get through the door, you may need a third party introduction from a local banker or lawyer. Executives are protected by secretaries, so initial correspondence may take place through the secretary, who should be treated with respect.
Expect Chileans to turn up 15 minutes late for a meeting. You, as the visiting party, should always be on time.

During a meeting
An initial meeting will be an exploratory one with a lot of relationship-building. Do not be surprised if no business at all is done in this session. Chileans need to establish your long-term intentions and put you in context, so expect a lot of small talk.
Chilean culture is strongly hierarchical and it is important to know who is top of the pyramid, especially when a group is present at the meeting. If you haven't found out beforehand, observe the behaviour of the Chilean team and note who defers to whom.
Hispanic cultures tend to all talk at once, which is seen as a positive thing. Conversation will often go off at a tangent. Participants may appear quite heated during a meeting, but this is normal and is not an indication of conflict. There is a tendency to get a 'feel' for something rather than be direct. But foreign visitors must get a 'feel' for the situation themselves, too. Keep your body language animated and positive. Remember that Chileans are more inclined to tell you what they think you want to hear, rather than the exact situation, so do not take everything that is said literally.

After the meeting
It is important to go out after the meeting and bond properly with the person, perhaps over lunch or over dinner, as that is when you really start to relate. The conversation may move all over the place but if you are waiting for a decision to be made, it may well happen outside the meeting room during a social event.
Chileans are highly legalistic and any documents that are drawn up as a result of a meeting should be checked by a lawyer.

Motivating Others
Chileans aspire to be part of the wealthy, ruling elite, despite the fact that they often complain about the privileged upper class. Progression is without doubt easier with the right name and pitutos (social connections) and those without this natural advantage have to work twice as hard to prove themselves. This can cause some resentment.
Chileans are motivated by money and status. Status is very important, as both the workplace and society generally are strongly hierarchical. Money is a strong motivator in an increasingly materialistic society, where gadgets are an indication of success. Bonuses are usually negotiated or at least brought up for discussion at the interview stage of recruitment. Other benefits include membership of one of the better private medical insurance plans, and extra pension plans on top of the compulsory 10% of net taxable income that every employee must pay.
Loyalty is also a driving force in the Chilean workplace. Employees expect loyalty from their employer and will offer their own in return. The family is the most important aspect of life in Chile and the workplace environment is an extension of this family; a sense of belonging is important. Job security is a strong motivator, too.

Effective Presentations
Presentations should be eloquent and persuasive, restrained and clear. Sales literature should be in Spanish. The presentation itself can be in English if you think your audience has suitable command of the language; otherwise, try to make it in Spanish or use an interpreter.
Chileans put great importance on relationships so build on this in any presentation. Emphasise your long-term commitment to the country; Chilean firms often complain that foreign investors have a quick sell, short-term approach and do not make enough effort to have a presence in the country. Also talk about your relationship with your Chilean partners; your commitment to training, to developing their business and your willingness to take advice from them.
National pride is important, but Chileans also have great admiration for the European (and to an extent, north American) way of doing things.

Audience Expectations
Chileans are good listeners although they may get frustrated during a long speech with the desire to interrupt. Their cultural values are mainly Hispanic, which includes the tendency to jump into a conversation. They are not good at listening to a long monologue. It is better not to allow questions during a presentation as you are likely to be sidetracked, but do allow plenty of time at the end.

Managing Relationships
Managing relationships with Chilean employees is relatively straightforward provided there is a strong management team in place, a clear definition of individual tasks and regular
monitoring of deadlines and progress. Chileans have a tendency to do things at the last minute, or to make promises in meetings which cannot later be fulfilled. There is a desire to please and to say what the other person wants to hear rather than deliver bad news. Teams can be lacking in initiative if there is no clear leader to inspire them.
The best way to maintain relationships is to make frequent visits to the country and if you are already there, to entertain often. The importance of cultivating pitutos (connections) cannot be stressed enough. A good knowledge of Spanish is essential to get by in Chile, in everything from everyday life to managing teams, networking and negotiating. It is strongly recommended that all expatriates make an effort to learn the language.