Chile’s Economy: Resources, Regions & Trade

Posted on Feb 28, 2025 in Geography

Chilean Economic Activities and Resources

Key Economic Concepts

  • Codelco: The state-owned Copper Corporation, manages Chile’s vast copper mining deposits.
  • Enami: The National Mining Company, responsible for administering medium-scale mining.
  • Traditional Products: Products with a long history of exploitation in Chile, including copper, wheat, timber, and fish meal.
  • Nontraditional Products: Products Chile has been exporting for over 15 years, such as fruit, wine, cellulose, and salmon.
  • GDP (Gross Domestic Product): Measures the total value of goods and services produced within Chile’s borders. It also reflects the relationship between exports and imports, highlighting the economic contribution to the country.
  • International Prices:
    • FOB (Free on Board): Export price at the port of origin.
    • CIF (Cost, Insurance, and Freight): Includes the cost of goods, insurance, and transportation.
  • Flows: Movements within the economy, including labor and monetary transactions, both nationally and internationally.
  • Steel Industry (Siderúrgica): Production of steel and iron.

Livestock and Forestry

  • Auquénidos: Highland cattle, including llamas, alpacas, and vicuñas.
  • Sheep (Ovejo): Sheep production, primarily in the XI and XII regions.
  • Cattle (Ganado): Cattle production, concentrated in the IX, XIV, and X regions.
  • Goats (Cabras): Production of goats and goat cheese.
  • Forestry: Production of introduced species like pine, eucalyptus, poplar, and Oregon pine.

Chile’s Global Economic Relations

  • Unilateralism: Chile’s presentation to the world.
  • Bilateral: Trade agreements between two countries.
  • Multilateralism: Integration of various economies.

Regional Economic Specialization

  • Fishing and Mining Regions (XV, I, II): Characterized by fishmeal and copper production.
  • Mining and Agricultural Regions (III, IV): Production of copper, iron, and gold. Intensive farming is also significant.
  • Industrial Regions (Metropolitan, V, VIII): Characterized by industrial concentration, population, and port activity.
  • Silvoagropecuarias Regions (XIV, X): Focus on meat, dairy, cereals, potatoes, and native and introduced forestry species.
  • Livestock-Energy Regions (XI, XII): Known for oil and gas production, as well as sheep farming for meat.

Additional Economic Terms

  • Agribusiness: Industrial processing of agricultural products, such as fruit into jam or pulp.
  • Endogenous Model: Chile’s economic development model, focusing on physical capital (machinery), human capital, labor, and comparative advantages.
  • Sustainable Development: Balancing resource exploitation with environmental care.
  • Economy: The science addressing the scarcity of resources.
  • Comparative Advantages (of Chile): Steel, the Pacific Ocean, and climate.
  • Horticulture: Production of vegetables and fruits (VI Region).
  • Manufacturing: Processing of raw materials.
  • Hydropower: Water-based power generation (VIII Region).
  • Thermoelectricity: Energy produced using oil, gas, and coal, primarily in the Norte Grande region.
  • Modern Agriculture: Agriculture focused on water-intensive products, such as fruit.
  • Agroforestry: Combination of forestry, agriculture, and livestock (X Region).
  • Agriculture: Agricultural and livestock activities (IX Region).
  • Industrial Fishing: Fishing within the 200-mile exclusive economic zone.
  • Small-Scale Fisheries: Fishing within 12 nautical miles, primarily a national activity.
  • Intermediate Goods: Processed raw materials (e.g., wheat to flour to bread).
  • Consumer Goods: Goods for direct use, including indirect-use goods like automobiles.
  • Capital Goods: Goods valued for their productive capacity, such as technology and machinery.
  • Corfo: *Corporación de Fomento de la Producción* (Production Development Corporation).
  • Neoliberalism: Economic doctrine promoting privatization.
  • Globalization: Global interrelation of countries.
  • Economic Interdependence: The dependence of countries on each other as suppliers of raw materials.
  • ALADI: Latin American Integration Association.
  • Mercosur: Southern Common Market.
  • European Union: Political and economic union.
  • Tariffs: Taxes paid when goods enter the country.
  • Large-Scale Copper Mining: The largest mineral deposits, including Chuquicamata, El Salvador, Andina, and El Teniente.