1. Meghe Group of Institutions
Department
for
Technology Enhanced Learning
1

2. MBA Department
II SEM
BUSINESS ENVIRONMENT
UNIT- VI
Economic and Business
Environment in South America
2
DTEL

3. Syllabus : Unit 6
• Ups and Downs of South America in 21st century.
• Overview of the Continent
• Brief Country Profile
• Similarities and Differences of Countries in South
America
– Brazil
– Argentina
– Venezuela
– Chile
– Columbia
• Regional Trade Blocks and Road Ahead
3

4. South America

5. BRAZIL:MACRO ECONOMIC DATA
Population 181 million
Population Density(ppl/sq/km) 21.1
Population growth(annual %) 1.2
Urban Population 81%
GDP(PPP, current US$) 514.4 billion
GDP real growth(annual %) 1.8%
Inflation 13.4%
Unemployment Rate 19.5%
Life Expectancy at birth 73.4

6. ARGENTINA:MACRO ECONOMIC DATA
Population 39.5 million
Population Density(ppl/sq/km) 13
Population growth(annual %) 1.02
Urban Population 89.3%
GDP(PPP, current US$) 433.5 billion
GDP real growth(annual %) 8.7%
Inflation 13.4%
Unemployment Rate 17.5%
Life Expectancy at birth 76

7. VENENZUELA:MACRO ECONOMIC
DATA
Population 25.5 million
Population Density(ppl/sq/km) 17
Population growth(annual %) 1.9
Urban Population 88%
GDP(PPP, current US$) 94.2 billion
GDP real growth(annual %) 3.2%
Inflation 22.3%
Unemployment Rate 19.5%
Life Expectancy at birth 72.3

8. CHILE:MACRO ECONOMIC DATA
Population 16.1 million
Population Density(ppl/sq/km) 17.4
Population growth(annual %) 1.3
Urban Population 83%
GDP(PPP, current US$) 72.2 billion
GDP real growth(annual %) 3.3%
Inflation 3.3%
Unemployment Rate 12.3%
Life Expectancy at birth 76.3

9. COLOMBIA:MACRO ECONOMIC DATA
Population 46.16 million
Population Density(ppl/sq/km) 18.4
Population growth(annual %) 1.5
Urban Population 76%
GDP(PPP, current US$) 77.6 billion
GDP real growth(annual %) 3.7%
Inflation 7.3%
Unemployment Rate 16.8%
Life Expectancy at birth 71.8

10. REGIONAL TRADE BLOCKS
• Association of American Chambers of
Commerce in Latin America(AACCLA)
• Mercosur: The Southern Common Market
• South American Community of Nations(SACN)

11. EXCHANGE RATES
Country Brazil Argentina Venezuela Chile Colombia
Exchange
Rate
2.46
Real/US $
3.06
Argentine
Pesos/US $
1160
Bolivares/
US$
688.95
Chilean
pesos/US$
2504
Columbian
pesos/US $

12. Suggested Readings
• Business Environment : Text and Cases
– Justin Paul (3rd Edition , McGraw Hill Publication)