South America
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 already in place has begun to reap benefits. A program of reduced public spending, increased privatization and stable fiscal policy has brought inflation under control, but has put the cost of capital at a high rate. 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
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, pharmaceuticals, oil & gas, 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 lectures aimed at deepening an understanding of the latest commercial and political developments in Brazil. Afternoons will be spent visiting government agencies regulating commercial activity, the stock exchange, leading banking institutions, and several industrial enterprises. Major topics of study will be foreign direct investment, development of heavy industry, advertising & marketing, and telecommunications. The weekend is free to explore the city or to travel to Iguaçu Falls on the border with Argentina and Paraguay.
SALVADOR
To provide participants with a complete picture of the Brazilian business environment, this year's program will again include the regional capital of Salvador, Bahia. Located in the northeast corner of the country, this city is the center of Brazil's Afro-Caribbean culture. Here the group will be given a short but intense introduction to a less-developed region of the country. The focus of this segment will be on entrepreneurship, the role of government in spurring commercial activity, and the nascent tourism industry. One full day will be set aside to enjoy the rich history and culture of this important part of Brazil.
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 broadcast media. Time will be set aside for a visit to a favella, to observe the business environment at the lower end of the economic spectrum.
The participants will gather on the last day of the program for a synthesis session that will serve to provide a basis for the written work that will be due in the fall semester. Departure will take place following a farewell meal.
