The Guggenheims and Chilean Nitrates

Posted: 18 Apr 2012

See all articles by Geoffrey Gareth Jones

Geoffrey Gareth Jones

Harvard University - General Management Unit

Felipe Tamega Fernandes

Harvard Business School, Entrepreneurial Management Unit

Date Written: January 6, 2012

Abstract

The case describes the growth of Guggenheim Brothers as one of the largest mining companies in the world in the early twentieth century. Global expansion led the firm to Chile, first in copper and later in natural nitrates. Chile's economic growth was driven by the profits from mining, especially its world monopoly of nitrates. The Guggenheims invested in Chilean nitrates after synthetics were developed by German chemists. Their strategies to modernize the industry collapsed with the outbreak of the Great Depression, during which Chile experienced the greatest fall of incomes of any country. The case serves as a vehicle to explore the devastating economic and political impact of the Great Depression on the countries of the South, such as Chile, which had specialized in primary commodities, and on mining and financial capitalists such as the Guggenheims.

Learning Objective: To illustrate, from an entrepreneurial perspective, the impact of the Great Depression on countries of the South, especially Chile, and on financial capitalism.

Suggested Citation

Jones, Geoffrey Gareth and Fernandes, Felipe Tamega, The Guggenheims and Chilean Nitrates (January 6, 2012). Harvard Business School Entrepreneurial Management Case No. 810-141, Available at SSRN: https://ssrn.com/abstract=2042029

Geoffrey Gareth Jones (Contact Author)

Harvard University - General Management Unit ( email )

Boston, MA 02163
United States

Felipe Tamega Fernandes

Harvard Business School, Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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