International Trade and Brief Company Profile
BSB119 Global Business
Country Feasibility Analysis Report
Due Date: Monday, April 30 2012
Company: Octahedron
Position:
-------------------------------------------------
Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 2.1 Brief Company Profile 4 3.0 Political-Legal Environment 4 4.0 Economic Environment 6 5.0 Country of Choice 6 6.0 Mode of Entry 6 7.0 Conclusion 6 8.0 References 7
1.0 -------------------------------------------------
Executive Summary
-------------------------------------------------
2.0 Introduction
-------------------------------------------------
2.1 Brief Company Profile
SWIM software is an innovative product revolutionising the jewellery market. It is therefore hard to determine other competitors as it is a niche product. To assess the competition in both markets, the analysis of its potential of utility will be a better indicator.
Since the late 1980’s, tariffs on jewellery were lowered to 20% and eventually eliminated under the NAFTA trade agreement. With the growth of Mexico’s economy, the demand for jewellery by the Mexican market has also increased. Mexican distributors are actively seeking new United States product sources due the NAFTA agreement. This would suggest far greater potential utility for SWIM software as trade between the US and Mexico creates more processes along the supply chain. Research in 2008 found that in Mexico, “it is necessary to create new strategies where the core competence is the supply chain management.”
-------------------------------------------------
3.0 Political-Legal Environment
Country’s differences in relation to political and legal systems can have dramatic impact on the benefits, costs and risks associated with expanding a business internationally (Hill, 2008, p.219). In order to make a well analysed decision on feasibility of expansion of Octahedron into either Mexico or Colombia, the political-legal environments of each country
Country Feasibility Analysis Report
Due Date: Monday, April 30 2012
Company: Octahedron
Position:
-------------------------------------------------
Table of Contents 1.0 Executive Summary 3 2.0 Introduction 4 2.1 Brief Company Profile 4 3.0 Political-Legal Environment 4 4.0 Economic Environment 6 5.0 Country of Choice 6 6.0 Mode of Entry 6 7.0 Conclusion 6 8.0 References 7
1.0 -------------------------------------------------
Executive Summary
-------------------------------------------------
2.0 Introduction
-------------------------------------------------
2.1 Brief Company Profile
SWIM software is an innovative product revolutionising the jewellery market. It is therefore hard to determine other competitors as it is a niche product. To assess the competition in both markets, the analysis of its potential of utility will be a better indicator.
Since the late 1980’s, tariffs on jewellery were lowered to 20% and eventually eliminated under the NAFTA trade agreement. With the growth of Mexico’s economy, the demand for jewellery by the Mexican market has also increased. Mexican distributors are actively seeking new United States product sources due the NAFTA agreement. This would suggest far greater potential utility for SWIM software as trade between the US and Mexico creates more processes along the supply chain. Research in 2008 found that in Mexico, “it is necessary to create new strategies where the core competence is the supply chain management.”
-------------------------------------------------
3.0 Political-Legal Environment
Country’s differences in relation to political and legal systems can have dramatic impact on the benefits, costs and risks associated with expanding a business internationally (Hill, 2008, p.219). In order to make a well analysed decision on feasibility of expansion of Octahedron into either Mexico or Colombia, the political-legal environments of each country
References: Encyclopaedia of the Nations. (2012). Mexico – International Trade. Retrieved from http://www.nationsencyclopedia.com/economies/Americas/Mexico-INTERNATIONAL-TRADE.html U.S Department of State. (2011). Background Note: Mexico. Retrieved from http://www.state.gov/r/pa/ei/bgn/35749.htm U.S Department of State. (2011). Background Note: Colombia. Retrieved from http://www.state.gov/p/wha/ci/co/ Mejia, P.R. (2011). Colombia: The only risk (for investors) is social unrest. Retrieved from http://colombiareports.com/opinion/111-colombiamerican/14843-colombia-the-only-risk-for-investors-is-social-unrest.html Kimball, J. (2011). Key Political Risks to watch in Colombia. Retrieved from http://www.trust.org/alertnet/news/factbox-key-political-risks-to-watch-in-colombia/ Mcgee, J. (2011). 10 Advantages of Free Trade. Retrieved from http://www.ehow.com/about_5381660_advantages-trade.html