1) MULTICULTURAL COUNTRY

 Bolivia’s rich cultural heritage includes mestizos (68%), natives (20%), whites (5%), and blacks (1%). It has strong indigenous roots, and it is the country with the largest indigenous population in the region. The United Nations has recognized Bolivia for protecting and preserving its culture as an example for other indigenous people in the world. 

Its National Constitution recognizes thirty-seven official languages, including Spanish and indigenous languages like Quechua, Guarani, and Aimara. 

 

 

2) LOCAL PARTNERS

Before engaging in business, it is recommended to have a business partner in Bolivia who is aware of the foreign market policies, how it works, and what the local market needs. Given the country’s inherent policies and culture, foreign new companies and products are met with indifference. Therefore, chances of success are much higher when you can count on a local business partner. Bolivia has intensified its efforts to improve its social development, modernize its infrastructure and reduce poverty by increasing foreign investment and international cooperation. 

 

 

3)  LABOR COST

Bolivia offers labor at competitive prices to foreign companies doing business in the country. Such an approach can prove most advantageous in the manufacturing and customer services industries.

Therefore, foreign companies looking to do business in Bolivia will have significant access to experienced staff at low costs compared to other markets, keeping overhead low and improving the chances of higher profit margins. 

 

4) BUSINESS ETIQUETTE

While doing business in Bolivia, it is essential to build personal relationships. Bolivians are friendly and sociable; they value getting to know their business partners well. Personal relationships are crucial before closing a business deal. Bolivian business owners tend to be formal, particularly in La Paz and Cochabamba. They also pay close attention to appropriate business attire. In terms of punctuality, it is common for business meetings to start 10 to 15 minutes later than the scheduled time. It is considered good manners to welcome potential business partners with food or beverages. Welcome gifts are also regarded as good practice.

 

5) LIVING FAR FROM THE SEA

The War of the Pacific was an armed conflict between 1879 and 1884 between Chile and Bolivia, in alliance with Peru. It broke up when Bolivia decided to impose a 10-cent tax per quintal of exported nitrate. Chile decided to invade the territory, arguing that the tax violated a commercial treaty signed in 1874.

Even though the tax and the treaty seem to be the leading causes of the conflict, the root causes of the war were deeper and complex. As a result, Chile moved its borders to the North and left Bolivia without 120,000 square kilometers of territory and 400 km of coastline. 

Since 2006, the Bolivian government has been claiming its original territory before the International Court of Justice. However, the Hague Court ruled in favor of Chile, arguing that the trans-Andean country has no legal obligation to participate in negotiations related to Bolivia’s pursue for an outlet to the ocean.