Chile

With the largest, stable economy in South America, Chile has relied heavily on international trade and a high rate of exports to create a stable, expanding economy that is the model for South American nations. Driven predominantly by its strong export system Chile has seen its GDP grow steadily over the last twenty years, at average rates between four and eight percent.

Exports, currently, account for approximately forty percent of Chile's GDP (CIA Factsheet). Chile has created a very impressive international trade by focusing a market driven economy and allowing for great levels of fluctuation in their implementation. Furthermore, Chile regularly complies with international standards and practices and has expanded its trade throughout North America, Asia and Australia, allowing it to tap into the resources of the most powerful first and second world economies.

By establishing Free Trade Agreements (FTAs) throughout the world, including an FTA with the United States in 2003, Chile has been able to create a persistent and powerful level of international trade. Chile also has FTAs with Japan, South Korea, China and most recently India. Chile is also one of only a few nations with an FTA with the entire European Union bloc. FTAs are vital for maintaining a nation's international trade because they limit, or remove completely, trade tariffs placed on goods. Though tariffs generate revenue primarily off of imported goods, they restrict trade between nations by creating arguing points between the two nations seeking some form of equal compensation.

Domestically, Chile has benefited greatly from its strong international trade programs. Naturally, as a nation increases its GDP, living standards will rise, poverty will begin to decrease, as well as a decrease in unemployment and inflation will be controlled. Chile, in this regard, is no different. Beginning in early 2007 the unemployment rate has been constantly and slowly decreasing below 8%, a decrease from the 1999...