This text addresses all aspects of foreign direct investment in Chile. It is considered to be a model in Latin America. Since the beginnings of the 1990s, foreign investment in Chile has been transformed into a highly significant macroeconomic variable. Indeed, the phenomenon of foreign investment has enticed companies from over 60 countries, representing all the continents. The impact foreign investment has had on the country’s economic development is significant. In December 1994, Chile was formally invited by the United States, Canada and Mexico to join the NAFTA (North American Free Trade Agrrement). Negotiations leading to Chile’s participation in the NAFTA are expected to begin in the near future. This development should yield many benefits for Chile. First and foremost, this development, acting in concert with the political and economic stability of Chile, should serve as an impetus for more companies, particularly those of American origin, to invest in Chile.