Paraguay

BUS 433 Dr. Weaver

Member 1:Salvatore Cantali
Member 2: Alexandra Metcalfe
10/28/2014

Table of Contents
1) Location ................................................................................................................................... 3
2) Size comparison to the size of United States:.......................................................................... 4
3) Topography and Climate ......................................................................................................... 5
4) Family Structure: ..................................................................................................................... 6
5) Political environment and government structure ..................................................................... 7
6) Relation to the United States politically today and next five years: ........................................ 8
7) Economic base (GNP/GDP) .................................................................................................... 9
8) Chief imports and exports: ...................................................................................................... 9
9) Paraguays Relations with United States for exports and imports. ....................................... 10
10)

Formal Alliance memberships ........................................................................................... 11

11)

Important Memberships ..................................................................................................... 11

12)

Stage of Rostows Stages of Economic Development. ...................................................... 13

13)

Forms of media available for advertising to ultimate consumers ...................................... 14

14)

P-time culture ..................................................................................................................... 15

15)

Gender Bias and the Degree of Bias: ................................................................................. 16

16)

U.S. employees necessary .................................................................................................. 16

17) Population age and distribution: ............................................................................................. 17

18) Languages: .............................................................................................................................. 18
19) Religions ................................................................................................................................. 20

20) Housing ................................................................................................................................... 21

21) Education ................................................................................................................................ 21
22) Environment and the Green Market ....................................................................................... 22
24) Trade Barriers ......................................................................................................................... 25
25) Racial/Ethical Makeup ........................................................................................................... 25
26) Labor Force............................................................................................................................. 25
27) Relation to the United States .................................................................................................. 26
28) Natural Resources ................................................................................................................... 28
29) Distribution System ................................................................................................................ 28
30) Potential for U.S. Businesses .................................................................................................. 29
31) Ultimate Consumer Products .................................................................................................. 31
Bibliography ................................................................................................................................. 33

1) Location

Brazil is Paraguays biggest trade partner, followed by Argentina. Paraguay imports

most of its goods from Brazil. Interestingly enough, Paraguay re-exports almost 50
percent of its imports back to Brazil or Argentina for profit. This is to compensate for
their narrow economic industry, with agriculture being their largest source and also a
slow, growing market. They make either no change or very little change to the products.
Paraguay, Brazil, and Argentina use the Paraguay-Parana waterway for their imports and
export exchanges. Brazil controls access to this waterway for their imports. In the

1 Map: Paraguay. (n.d.). Retrieved from Infoplease

http://www.infoplease.com/atlas/country/paraguay.html

1990s, Paraguay and Brazil formed a joint venture to build a hydroelectric power plant on
a chain of islands along the Paran River. This dam is called the Itaipu Dam. Brazil and
Paraguay split the ownership, operations, and amount of electricity generated. Paraguay
and Argentina are also co-owners of another hydroelectric power plant, called the
Yacyret. The Itaipu Dam is the worlds 2nd leading producer in hydroelectric power,
and over several years and currently in process, Brazil and Argentina are coordinating
projects to expand on the current owned dams and building more to help their goal come
to fruition. The goal is for Paraguay to become the worlds largest producer of electric
power.

2) Size comparison to the size of United States:

The United States is 19.87 times as big as Paraguay.3

Paraguay has approximately 6.9 million people, ranking them 104th in the world.

The population has rapidly grew, as in 2013, 6.81 million people populated
Paraguay.

United States on the other hand, has 318,935,000 people. It is the third most
populated country in the world. 4

Encyclopedia of the Nations (Paraguay)

MapFight (- United States (Contiguous) vs Paraguay size comparison)
4 Encyclopedia of the Nations (Paraguay)
3

3) Topography and Climate

A. Climate: With Paraguay located on the Tropic of Capricorn, the country experiences a
varied temperature climate. The average temperate throughout the year is 75 degrees
Fahrenheit. The eastern region consists of a more tropical climate, as it gets very humid
and rainy. The western region is the polar opposite. The climate is dry and lacks
adequate precipitation and moisture. Paraguay and the United States have opposite
winters and summers, due to Paraguay being located in the southern hemisphere. That
being said, Paraguays summer months are October to April, and winter months are May
to September. In the summer, the temperatures can peak as high as 95-105 degrees
Fahrenheit on any given day. The temperature range during the winter is a big gap,
averaging between 42 and 71 degrees Fahrenheit.

B. Topography: The eastern side of Paraguay has thick, substantial sized hills,
meadows, and forests. The western region is prairie based covered with dry grass with
minimal water and has trees that provide barely any shade.

C. Types of Products Affected: The products that would yield the most impact would
be soybeans, corn, tobacco, and wheat. In the eastern region particularly, where its
merely tropical, those products would benefit the most.

5
6

"Climate." Paraguay.com. N.p., n.d. Web. 27 Oct. 2014.

"Encyclopedia of the Nations." Topography. N.p., n.d. Web. 27 Oct. 2014.

4) Family Structure:
The family dynamics are rather traditional:

Majority of the families are nuclear with married couples and children or a single
woman with children.

The man is primarily the breadwinner of the family, and makes the authoritative
decisions.

The woman is responsible for the domestic activities, which involves household
management, childcare, earning a supplementary income to help out the husband,
and maintaining contact with the extended family.

Extended family households are not very common, but there will be times where
urban families will step up and temporary care for relatives who have needs who
come from a rural, less wealthy background.

Also, for relatives who are not married, married families that are urban will also
help them out.

"Countries and Their Cultures." Culture of Paraguay. N.p., n.d. Web. 27 Oct. 2014.

5) Political environment and government structure

Paraguay is a constitutional republic.

They are run democratically similarly to the United States, and are divided into
three branches also like the U.S.; Executive, legislative, and Judicial.

The executive branch includes the president and vice president, with both the
president and vice president serving 5 year terms with open elections.

The legislative branch consists of the senate and chamber of deputies, and the
Supreme Court constitutes the judicial side.

From 1954-1989, Paraguay was operated through a dictatorship, by General

Alfredo Stroessner.

In February 1989, Stroessner was succeeded by General Andres Rodriguez.

Ironically enough, he was a former long-time ally with Stroessner, but he
eventually proclaimed to convert Paraguay into a democratic government. That
being said, thats the origination of Paraguay becoming a democracy.

The government also adheres to a laissez-faire policy, with limited government

involvement. They are very open to foreign investment, with the United States
being one of their largest investors. 8

Over the next 5 years, the United States and Paraguay should continue to preserve
their relationship looking out for each other economically and politically, as the
U.S. has been doing so for several years. They maintain a very healthy,
reciprocate relationship.

"Encyclopedia of the Nations." Paraguay Politics, Government, and Taxation, Information about
Politics, Government, and Taxation in Paraguay. N.p., n.d. Web. 27 Oct. 2014.

6) Relation to the United States politically today and next five years:

The U.S. government is involved with the government of Paraguay to help them
economically. Paraguay has a lackluster economy in terms of diverse industries. The
U.S. helps Paraguay to create jobs, reducing poverty in the rural areas, and precluding
international criminal organizations from becoming widespread and taking place
altogether in the country. They also work on improving the overall security of the
country by supporting democratic institutions, also adding more opportunities for
vulnerable economic classes (working class), reinforcing to implement a standard,
efficient, and more regulated business environment. The United States and Paraguay are
associated together by common democratic values and honouring basic constitutional
rights; such as individual rights and self-freedom. They will continue to support each
other for the forthcoming years and building off the help both countries have provided for
each other, mainly the U.S. focus on prospering their economy as well as sticking with
each others adherence to their standard democratic, constitutional rights.

"U.S. Relations With Paraguay." U.S. Department of State. U.S. Department of State, 10 Oct. 2013.
Web. 27 Oct. 2014.

7) Economic base (GNP/GDP)

2013 Financial Results: All are indicated in U.S. Dollars
GDP (Purchasing Power Parity): 45.9 million
Household income: Lowest 10 percent: 1 percent
Highest 10 percent: 41.1 percent
Imports: 12.37 billion
Exports: 14.7 billion
Revenues: 5.788 billion
Expenditures: 6.287 billion
10

Current Account Balance: 1.376 billion

8) Chief imports and exports:

Top Exports:
1) Soybeans
2) Frozen Bovine Meat
3) Corn
4) Wheat
5) Soybean Meal

Top Imports:

10

"Paraguay Economy Profile 2014." Paraguay Economy Profile 2014. N.p., n.d. Web. 27 Oct. 2014.

1) Refined Petroleum
2) Cars
3) Computers
4) Broadcasting Equipment
5) Mixed mineral or chemical fertilizers
6) Tractors

7) Vehicle Parts11

9) Paraguays Relations with United States for exports and imports.

U.S. exports to Paraguay:
1) Video games
2) Perfumery
3) Cosmetics
4) Vehicles
5) Machinery

6) Agricultural Products

U.S. imports from Paraguay:

1) Gold
2) Animal Products
3) Tobacco

11

"The Observatory of Economic Complexity." OEC: Paraguay (PRY) Profile of Exports, Imports and
Trade Partners. N.p., n.d. Web. 26 Oct. 2014.

10

4) Wood

5) Sugars12

10) Formal Alliance memberships

1) United Nations
2) Organization of American States
3) International Monetary Fund
4) World Bank
5) World Trade Organization

6) Latin American Economic System13

11) Important Memberships

1) International Monetary Fund
2) World Bank
Both of these organizations have been most vital to Paraguay because
Paraguay has been working on restructuring and improving its economy over
several years. Paraguay has depended on both the World Bank and International
Monetary Fund to subsidize towards their economic rebuild. Between 2003 and
2007, the World Bank has funded 325 million dollars towards infrastructure,
education, and rural development.

14

12

"U.S. Relations With Paraguay." U.S. Department of State. U.S. Department of State, 10 Oct.
2013. Web. 27 Oct. 2014.
13
"U.S. Relations With Paraguay." U.S. Department of State. U.S. Department of State, 10 Oct.
2013. Web. 27 Oct. 2014.
14
Country Profile: Paraguay. London: British Overseas Trade Board, 1989. Web..

11

With the help from the World Bank, Paraguays socio-economic class has
been making strides for improvement. Between 2003 and 2009, the middle class
grew 50 percent. Also, 7.6 percent of Paraguayans upgraded to a higher economic
class during that same time period. 15
The World Bank implemented one major project that was developed to
revamp Paraguays economy. The project is called; Sustainable Agriculture Rural
Development Project. This is striving to specifically improve economic
conditions of small-scale farmers. World Bank financed 100 million U.S. dollars
towards this project. Due to Paraguay relying on agriculture to keep their
economy afloat and not being very industrialized, Paraguay has been floundering
over the last several years and still continues to be a work in progress. Having
that being said, Paraguay sits at the bottom in Latin America in terms of wealth.
Approximately 33 percent of the population lives under the poverty line and 18
percent live in extreme poverty. Predominately, the rural areas are living in
poverty. The Sustainable Agriculture Rural Development Project encompasses a
few key strategies. There are training programs provided for the small scale
farmers that will focus in on different agricultural production techniques. There
will also be on-farm technology and more use of resources to improve current
agricultural practices. The objective is to venture into other markets and increase
variety in production.

16

15

"News." WB/Paraguay: 200.000 Rural Poor to Benefit from Improved Agriculture and Social
Empowerment. N.p., n.d. Web. 27 Oct. 2014.
16
"News." WB/Paraguay: 200.000 Rural Poor to Benefit from Improved Agriculture and Social
Empowerment. N.p., n.d. Web. 27 Oct. 2014.

12

12) Stage of Rostows Stages of Economic Development.

Paraguay is placed in the second stage of economic development which is the
Preconditions for take-off LDC (Less Developed Countries). This is an agriculture based
stage, which is predominantly what Paraguay is. 45 percent of the employee workforce is
based in agriculture, and most of these farmers specialize in subsistence farming. 17
Agriculture also contributes to most of the export earnings; 20-25 percent of GDP. These
subsistence farmers grow a fair amount of food to fend for themselves and their families,
such as corn and wheat, but they are reliant on imports for general processed foods,
consumer goods, capital goods, and fuels. In other words, they dont have the necessary
resources and technology to produce all of the essential goods needed for survival. Also,
they import soap, cooking oil, clothing, and medicine and other basic consumer products.
Although they mainly concentrate in agriculture, they are on their way to expanding and
enhancing their economy. 18 Industrialization has been increasing and contributing more
to the GDP and labor force, making up 25 percent of the GDP. Overall, industrial work
adds up to 31 percent of employment. Paraguay has a narrow manufacturing market,
only focusing on food and beverages. Lastly, more infrastructure has been built and the
government continues to place heavy emphasis on it. The Paraguay- Parana waterway
serves as the main channel of distribution for exported and imported goods.

19

17

Country Profile: Paraguay. London: British Overseas Trade Board, 1989. Web..
"Countries and Their Cultures." Culture of Paraguay. N.p., n.d. Web. 27 Oct. 2014.
19
Country Profile: Paraguay. London: British Overseas Trade Board, 1989. Web..
18

13

13) Forms of media available for advertising to ultimate consumers

The radio and newspaper are two main mediums of media.

There are five different newspapers distributed daily;

1) Diario abc Color,
2) El Diario,
3) Noticias,
4) Dario La Nacion
5) Diario Ultima Hora

However, in rural areas, radio is the main advertising media.

Over the years, the internet use in Paraguay has been on the upswing.

According to statistics, 27 percent of the population used the internet in

2012.

Social media is also crawling upward for advertisement utilization and

daily use, but only a very tiny percentage were recorded using it in 2012
(7 percent).

20

20

Press Reference." Paraguay Press, Media, TV, Radio, Newspapers. N.p., n.d. Web. 27 Oct. 2014.

14

14) P-time culture

Paraguay lives a P-time culture lifestyle.

It is not entirely frowned upon to be late, but punctuality is always enforced for
business meetings. Business meetings normally start 10-20 minutes after the
scheduled time.

Establishing personal connections is valued more than business relationships.

When dealing with business situations, building connections in general is more
imperative than sharing one anothers credentials/ qualifications.

Before the meeting begins, it is expected for colleagues to bond and establish
some chemistry, as opposed to just cutting to the chase and start the meeting
promptly.

The negotiation and decision making process takes time. Both parties get their
fair chance and time to voice their inputs to agree on something or for equal
exchange among things, so the flexibility for negotiating is very strong.

21

21

"Paraguay - Cultural Etiquette - E Diplomat." Paraguay - Cultural Etiquette - E Diplomat. N.p., n.d.
Web. 27 Oct. 2014

15

15) Gender Bias and the Degree of Bias:

There is a large degree of gender bias in Paraguay.

Men seem to be the ones favoured in terms of employment, treatment, land

ownership, etc.

Womens to mens salaries ratio is the second lowest in Latin America.22

Ironically enough, with this being the case, women still form 74 percent of the
labor force.23

Unfortunately, sexual harassment complaints and discrimination against women

in the work force is prevalent. 24

Although there are no legal restrictions on female land ownership, the odds of
women being approved to buy and/or lease land are 50 percent as likely as men.

16) U.S. employees necessary

The United States is one of Paraguays largest foreign investor. More than 12 U.S.
multinational companies have subsidiaries in Paraguay. These types of companies are
computer, telecom, banking, and agro-industrial related. Paraguay and the United States
discuss trade and investment opportunities from time to time. If you are doing business
in Paraguay, the types of U.S. employees needed would be agricultural workers, seeing as
agriculture accounts for almost half of employment. . So, with Paraguay and U.S.

22

"2008 Legatum Prosperity Index". Legatum. Retrieved September 4, 2011.

23

Hanks, Winston. "PARAGUAY MAKES STEP FORWARD FOR WOMENS AND INDIGENOUS
RIGHTS ANALYSIS." Urasia Review. Urasiareview, 7 July 2011. Web. 10 Oct. 2014.
24
"Paraguay." U.S. Department of State. U.S. Department of State, n.d. Web. 27 Oct. 2014.

16

having little to no trading and investment constraints, U.S. has a fair ability to negotiate
with Paraguay regarding business opportunities.

25

17) Population age and distribution:

Total Population: 6.802 million

Age Distribution:
o 0-14 years: 26.2% (male 892,315/female 861,915)
o 15-24 years: 20.5% (male 691,365/female 683,653)
o 25-54 years: 39.5% (male 1,326,281/female 1,323,194)
o 55-64 years: 7.2% (male 246,869/female 236,564)
o 65 years and over: 6.6% (male 206,089/female 235,615) (2014 est.)26
Urban population: 61.9% of total population
Rural Population: 38.1% of total population

Population Density Map: people per km2

The largest population density is in the Capital Asuncion with 1.97 million people
Other Large Population cities:
25

"U.S. Relations With Paraguay." U.S. Department of State. U.S. Department of State, 10 Oct.
2013. Web. 27 Oct. 2014.
26
"Paraguay Age Structure." - Demographics. N.p., n.d. Web. 27 Oct. 2014.

17

Encarncion
Villarrica 27

18) Languages:
Official:

Spanish (87% of the population speak or about 3,500,00 people)

Guaran (90% of the population speak or 4,939,180 people)

73% of the population is bilingual in both languages

27% is monolingual either in Spanish or in Guaran.

Unofficial Languages:
Guarani Languages

Ach language (1,420 of the population speak)

Ava (about 2,060 of the population speak)

Mby (about 5,000 of the population speak)

Paraguayan (about 4,650,000 of the population speak)

Pai Tavytera language (600 of the population speak)

andeva language (2,270 of the population speak)

Guaycuru Languages

Toba Qom language (1,510 of the population speak)

Maskoy Languages

27

Toba-Maskoy language (1,680 of the population speak)

Enlhet language (7,220 of the population speak)

Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 27 Oct. 2014.

18

Enxet language (5.840 of the population speak)

Sanapan language (2,270 of the population speak)

Guana language (28 of the population speak)

Angait language (3,690 of the population speak)

Sanapan language (2,270 of the population speak)

Mataco-Mataguayo Languages

Guana language (28 of the population speak)

Manjui (650 of the population speak)

Nivacl language (13,700 of the population speak)

Maka language (1,500 of the population speak)

Zamuco Languages

Ayoreo language (2,600 of the population speak)

Chamacoco language (1,600 of the population speak)

Other Languages

28

Paraguayan Sign Language (15,000 of the population speak)

Standard German (166,000 of the population speak)28

"Paraguay." Ethnologue. N.p., n.d. Web. 27 Oct. 2014.

19

19) Religions
Number of Participants

Percent of Population

Roman Catholic
Evangelical Christian
Other Christian
No religion

Doesnt embrace the principle of separation of church and state

Business have to consider the values of Roman Catholics when marketing products in

3,488,086
264,233
186,107
44,334

89.61%
6.2%
4.78%
1.14%

Paraguay

20

20) Housing

Rural Housing

One-room houses
Dirt floors
Reed, wood, or brick walls
Thatched roof, sloped to carry off the heavy rains
A separate or attached shed serves as a kitchen
Few houses have indoor plumbing

Urban Housing

29

Small, pastel-colored houses of brick or stucco

Tiled roofs
Iron grillwork on the windows
The poor in the cities live in shacks

21) Education
In Paraguay, nine tenths of the population is literate and basic education is free from ages
7 and 14 for urban areas and 9 and 14 for rural areas. The enrolment rate for schools are high,
about 90% of children enroll in school, however the dropout rate is also high. Rural areas are
very poor, making it hard for children to go to school, causing illiteracy in about 10-15% of
children under the age of 15. Paraguay has a four tier education system that stars in primary
school from the ages of 7-14 depending on the area, then after two phases of secondary
education each 3 years, and then one can choose to further their education at a university. 30
Paraguays government has been making education one of their priorities since 1992. A
considerable part of the annual budget is dedicated to improving the education system. This has
29

"Bill and Pam's Paraguay Adventure and Beyond!: Sunday Adventure: Part Three - Atyra." Bill and
Pam's Paraguay Adventure and Beyond!: Sunday Adventure: Part Three - Atyra. N.p., n.d. Web. 27
Oct. 2014.
30
"Education System in Paraguay." Paraguay Education System. N.p., n.d. Web. 27 Oct. 2014.

21

made education more accessible to the general masses. If the government continues to make
efforts to increase education in Paraguay, this could have a significant impact on business.
Currently if business tried to market products to Paraguay consumers, they could reach a
problem if the product has detailed instructions that go with it because consumers may not be
able to understand them. 31Business could get the basic components or an idea of a product to
consumers using easy to understand words and pictures. Also if business wanted to start
producing their products in Paraguay, they could find it difficult to employ educated workers
because of how difficult it is for some to gain access to education. If Paraguays government
continues to invest in its education, business could market products easier to consumers and start
expanding their business in Paraguay. Paraguays government should start finding ways to make
education easily available to all, and also find ways to keep students in school wanting to further
their education in higher education. 32

22) Environment and the Green Market

There are many environmental issues that plague Paraguay such as, deforestation, water
pollution, inadequate means for waste disposal in urban areas, and a loss of wetlands.33
Businesses in Paraguay, especially those in agriculture, have been acquiring land to help and
support Paraguays mainly agricultural market,
which has led to the environmental issues of
deforestation and the loss of wetlands.
According to recent analysis, 35% of the
Atlantic Forest was lost in Paraguay between
1989 and 2003. Then, because of the increase
of agriculture, there is also an increase in water
pollution because the chemicals used by
farmers for their crops are seeping into the
water system and rives. About 93% of urban
citizens and 59% of rural citizens have access
to pure drinking water, and many cities have
no facilities for waste collection. 34
For business try to sell products in Paraguay, any agricultural products would have an
opportunity to be consumed because of the increase in farm lands. To promote the green market
businesses could produce a product or service to help with cleaning of water since pure drinking
water is scarce in some areas of Paraguay. 35The government might invest in the business that
could provide a substantial solution for their water problem. The government should also invest
31

"Paraguay Education." Universities, Schools. N.p., n.d. Web. 27 Oct. 2014.

"Paraguay - Educational System-overview." - Percent, South, Schools, and Country. N.p., n.d.
Web. 27 Oct. 2014.
33
"Paraguay Environment - Current Issues." - Geography. N.p., n.d. Web. 27 Oct. 2014.
34
"Environmental Problems in Paraguay." WWF. N.p., n.d. Web. 27 Oct. 2014.
35
Encyclopedia of the Nations." Environment. N.p., n.d. Web. 27 Oct. 2014.
32

22

in a waste collection and reduction, like a garbage service and the creation of dumps in cities to
reduce the waste in urban areas.

23) Infrastructure
Travel

Waterways
o 1,926 miles of waterway
o Depend heavily on waterway
transportation
o Two main rives are the
Paraguay River and the
Paran River
Roadways
o About 29,000 kilometers of
road
o Only 15,000 kilometers of
road are paved
o Thousand kilometers of
unpaved road exits in rural
areas.
Railways
o Government owed railway
o 971 kilometer of track
o Only a small section of line is
open and used for tourist
traffic. 36
Airport
o 937 airport
o Only 15 have paved runways
o Silvio Pettirossi International Airport ( ASU ) is the primary domestic and
international air gateway

Highways in
Paraguay

36

"Encyclopedia of the Nations." Paraguay Infrastructure, Power, and Communications, Information

about Infrastructure, Power, and Communications in Paraguay. N.p., n.d. Web. 27 Oct. 2014.

23

Communication
Telecommunication
o Only 6% of the population have
access to landline connection
o 99.4% of the population are
mobile-cellular subscribers
Radio and Television
o 6 privately owned TV stations
o 75 commercial and community
radio stations
o 1 state-owned radio network
o 750,000 households have
television37
Internet
o 24% of the population are internet
users
o 22.7% of households have a
personal computer
o 19.3% of households have internet access
o Internet code: .py
o Very little business is conducted over the internet38
Electricity
99.79% of Paraguays electricity come from hydroelectric power
Paraguay generated 51.8 Bkwh in 2004
Consumed only 3.1 Bkwh in 2004
Medical Facilities
Health is generally worse in rural areas than those in urban areas
22.5 health workers per 10,000 population nationally
2 physicians for every nurse
30% of health workers in rural areas; 70% of health workers in urban areas
There is a lack of health infrastructure in rural areas
Private health insurance is very limited
88% of health care is a fee-for-service basis39

37

Central Intelligence Agency. Central Intelligence Agency, n.d. Web. 27 Oct. 2014.
Country Profile: Paraguay. London: British Overseas Trade Board, 1989. Oct. 2005. Web.
39
"Paraguay." WHO. N.p., n.d. Web. 27 Oct. 2014.
38

24

Water Supply
70% of urban households have water supply
13.3% of rural households have a water supply40

24) Trade Barriers

U.S. 81st largest trading partner with 2.2 billion in total

Paraguay is a member of the MERCOSUR common market, which is comprised of
Argentina, Brazil, Paraguay, and Uruguay
Paraguay has required non-automatic import licenses on:
o personal hygiene products
o cosmetics
o perfumes and toiletries
o textiles and clothing
o insecticides
o agrochemicals
o and poultry41
Paraguays average tariff rate is 4.5 percent42

25) Racial/Ethical Makeup

95% Mestizo (mixed Spanish and Amerindian) 95%,

5% Other
400,000 Brazilians live in Paraguay

26) Labor Force

40

Total Labor Force: 3.19 million

45% work in agriculture
31% work in the industrial sector
19% work in the service sector

http://www.scielosp.org/img/fbpe/rpsp/v11n5-6/10723t3.gif

41

"Paraguay." Office of the United States Trade Representative. N.p., n.d. Web. 27 Oct. 2014.
"Paraguay." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d.
Web. 26 Oct. 2014.
42

25

Unemployment rate: 15%

15% of workers are part of one labor union
1.600 labor unions
5% of workers were under the age of 14

27) Relation to the United States

Paraguay and the United States are very different and in some ways similar to each other.
The main difference is the size of the country. The United States is a large country with a large
population of 316.1 million while Paraguay is a small country, a little smaller than the state of
California, with a population of 6.802 million. The United States was formed on the basis of
many cultures and ethics, and still have many people immigrating to the U.S. while Paraguay is a
very native country with very low immigration rates. In fact Paraguay has a hard time getting
people to immigrate to their country.
Another difference is that the United States takes education very seriously, while
Paraguay most children do not realize the importance of education. In the U.S. our states take on
the role to enforce and set laws about children having to go to school and being provided
schooling. In Paraguay, children are not forced to take part in education, and many children from
poor families have to drop out at a young age to help support the familys finances. If a
Paraguayan graduates from a university, they are often regarded as experts, and people often will
address them as their degree title rather than Mr. or Ms. In the U.S. to become an expert in a
certain area, you have to study the topic extensively gaining experience and schooling in that
area and most of the time you must have a doctorate.
Also in Paraguay, people are very outgoing, warm, and curious and it is not out of the
norm for when they meet someone new they take the time to get to know them. In the U.S. we
also like to engage in conversation but like to keep some meeting brief or on topic as we are
always on the go and have a very fast paced way of life. This outgoing, relaxed personality takes
over the work place in Paraguay, and you will find it very common for workers in a business
setting to miss deadlines or not have a set in stone date for when something has to be done. It the

26

U.S. we take deadlines very seriously and do not have a relaxed manner when meeting those
deadlines. 43
However, like the U.S., Paraguayans dress formally if their jobs require it, with men
wearing a nice formal shirt and dress pants, and the women wearing a tailored set of clothes.
When meeting people will formally shake hands as a sign of meeting someone, just as we do in
the U.S. Paraguayans also put a lot on establishing trust with a person before considering them
a friend or a person to work with in the business. In the U.S. we also care about establishing trust
with people especially in business, so when make deals and transactions you know it is with a
good company who is not going to mistreat you in the end.
Americans perceive Paraguayans differently for different situations. In general we view
Paraguay as a poor Latin American country. In the working world, they see Paraguayans as not
hard working and very relaxed. It is like most of the work day is wasted and not productive
because Paraguayans take a last minute approach to many of the things they do. Paraguayans
view Americans as impatient, as we are always on the go and dont usual stop and take the time
to meet someone unless they absolutely have too. By always being on the go, they see Americans
as sometimes being rude and angry, as we like to get things done in a timely manner.
In all the relationship and cultural views between the United States and Paraguay are
generally positive and there are good communication and exchanges from both countries. 44

43

"Common Menu Bar Links." Cultural Information. N.p., n.d. Web. 27 Oct. 2014.
Menndez Alarcn, Antonio V. "Latin American Culture: A Deconstruction of Stereotypes."Project
MUSE - Latin American Culture: A Deconstruction of Stereotypes. N.p., 2014. Web. 27 Oct. 2014.
44

27

28) Natural Resources

Main resources:

Hydropower

Timber

Iron Ore

Manganese

Limestone

Other Resources

Fertile soil and its forests

Rivers

U.S. Business Interest:

Agricultural tool businesses will do well because many of their natural resources are
agricultural based

U.S. business can take advantage of rivers for transportation of products in Paraguay to
reach the ultimate consumers.

U.S. gets many imports from Paraguay of agricultural products, like sugar, soybeans, and
fruit.

29) Distribution System

Paraguay does not have preferred or special marketing channels

The major distribution and sales centers are the cities of Asuncion, Ciudad del Este, and
Encarnacion.

Advertisement

Primary media
o

Television

Radio

Other
o Newspapers
28

o Billboards
o Signs
o

Direct mail.

30) Potential for U.S. Businesses

Market Opportunities

Infrastructural Needs:
o Roads

Paraguayan road building firms, they will not have the capacity to
execute all planned projects

Creates opportunities for U.S. road construction and engineering

services

o Waterways

River engineering projects would create multiple opportunities for

U.S. firms

potential for sales of engineering and project management services

o Airports
o Ports

river ports are multiplying rapidly

The sudden need of port infrastructure creates a potential opportunity

for U.S. exporters

o Electrical grid

Other needs:
29

o computers and accessories

Demand will continue to rise for U.S. computer goods

o agricultural and construction machinery

Large infrastructure project will in the next 3-5 years will require
heavy machinery

Paraguay allows imports of used machinery

o Communications Equipment

Paraguays 2011-2015 National Telecommunications Plan calls for

quadrupling the international data transmission capacity

The Government of Paraguay is expected to solicit bids for a national

fiber optic connection project

Assembly and distribution operations

relatively low labor and electricity costs makes Paraguay suitable for a
variety of manufacturing industries

o Processed food.
Market Entry Strategy

Foreign firms interested in establishing operations in Paraguay should hire experienced

local attorneys and/or representatives and consider joint ventures with Paraguayan
companies to assist them in operating in Paraguay45

45

International Copyright, U.s. & Foreign Commercial Service And U.s., Department Of State, 2014.
All Rights Reserved Outside Of The United, and States. Doing Business in Paraguay: 2014 Country
Commercial Guide for U.S. Companies (n.d.): n. pag. Web.

30

31) Ultimate Consumer Products

The first ultimate consumer product we would introduce is light weight, water proof
jackets. Paraguay has a subtopic climate meaning it gets very humid out and there is always a
chance for precipitation. With a light weight jacket, consumers could wear the jacket without
getting overly hot, and with it being water proof, it will also protect them from the elements.
Farmer could get a great advantage out of the jackets because they could wear the jackets when
the weather is not good out, but still keep cool while wearing them in the heat. The level of
commitment is geocentric because the production would be at a global basis, and then the jackets
could be tailored to meet a certain consumers preference like size and color.
The second ultimate consumer product we would introduce are small radios that are
potable and are powered by a hand crank. In Paraguay, radio coverage is easier to come by than
telephone coverage or internet coverage, making radios a desirable product for all to use. Also in
many rural areas of Paraguay there is limited access to electricity, making it hard for them to
have communication with the rest of the country. With a radio that uses a hand crank, the need to
plug in the radio to use it is eliminated. With a radio, Paraguayans will be able to listen to a
variety of radio stations based on personal preference, and keep up to date with any news. For
those who work in agriculture, having a radio to play music could make work more enjoyable,
and also for those who are traveling could use the radio because of its portability, they can also
enjoy the sound of music. The level of commitment would be geocentric because a radio like this
could be universal and used in other areas of the world where electricity might be scarce and
there is a high coverage of radio signals. There is no need to tailor this product to fit a certain
segment of the marker because a radio has universal factors that make it desirable by many.

31

The third ultimate consumer product we would introduce are hybrid cars that would
reduce gas mileage for consumers and good suspension for driving on unpaved roads. Paraguay
has been developing their infrastructure slowly, but by having half of their roadways unpaved, it
makes driving cars an unpleasant experience. By having a hybrid car, consumers can save on gas
because it uses less gas and more electric to power the car. Being that Paraguay has an
abundance of hydroelectric power, powering these cars would be taking advantage of a resource
they naturally produce in the country. With having a good suspension, it would make the ride
more enjoyable, especially on unpaved roads, because the ride would be smoother. This would
save the consumer in the long run on maintenance because the wear and tear most cars usually
sustain without good suspension takes a toll on the life of the car, which can be avoided with
better suspension. The level of commitment would be geocentric because we would use a global
product, but be able customize the car to meet the consume needs in Paraguay.
The forth ultimate consumer product we would introduce is a line of perfume and
cologne. Paraguayans take pride in their image and how they are perceived by people. Many take
showers multiple times a day to ensure they do not smell. With perfume and cologne, being a top
import to Paraguay, we know there is a demand for this product and a large market segment.
Using perfumes and colognes will allow consumers to go about their day and spray themselves
when they feel they need it, cutting down on showers they may take and the time they spend on
their hygiene. The level of commitment would be ethnocentric because the need for the product
is the same for all consumers in that they want to smell good and presentable. The usage of the
product is also simple and easy to understand for those who may have never used a spray type
bottle before.

32

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