International Trade and Brief Company Profile

Political-Legal Environment Countrys differences in relation to political and lawful systems skunk live with dramatic adjoin on the benefits, costs and risks associated with fly uplifteding a worry transnationally (Hill, 2008, p. 219). In order to baffle a well analysed decision on feasibility of enlargement of Octahedron into either Mexico or Colombia, the political-legal environss of each expanse must be researched and analysed. Beginning with Mexico, the current government lineament of Mexico is a Federal Republic.Question ofFEDERAL slyness athttps//d unrivaledmyessay.com/apush-chapter-29/The current government is in the process of change many of the sylvans economic challenges, in particular, the feeler and modernisation of labour laws. fit to online website maneuver by the U. S Department of allege (2011, para. 7) the Presidents main priorities are to create more job opportunities indoors the field, which can be interpreted that the outlandish is open to foreign business expansion, as it will provide more jobs at bottom the dry land, which in turn will change the economy of Mexico.However, there are approximately setbacks in the way of political risks if Octahedron were to expand to Mexico, as it is very difficult to improve such things with so much degeneration in the field and a high amount of organized abuse on the streets. Such corruption often scares internationalistic iinvestors away, as it is not worth risking ones life to expand a business internationally. However, the current government is work hard to improve this situation and have assisted Mexico in dramatically improving international make do.According to online website Encyclopaedia of the Nations (2012, para. 4) the success of this can well-nighly be attributed to the compass north American Free merchandise Agreement (NAFTA) which they fall in in 1994. As well as NAFTA, Mexico is part of another Free Trade Agreement with the European Union. These agree ments set Mexico up as a highly seek after country for international expansion, as it is one of the only countrys with special access to both the North American and European markets. Expanding to a country that is part of these free trade agreements s exactly what Octahedron needs, as according to Mcgee, running(a) with a free job country will save costs of imports and exports (2011, para. 1), thus increasing the companys profitability. However, the political-legal environment of Colombia must also be analysed as a potential player for international expansion of Octahedron. The form of government presently running is a Constitutional Republic. According to journalist Pablo Mejia (2011, para. 2) Colombia is perhaps best know as one of the highest drug trading countries in the world, which is never a tyrannical reputation to hold, especially not for international expansion.However, over the past decade Colombia has had a dramatic decrease in crime rates, increase in pro-business politicians who have advance more openness to foreign trade (2010, para. 3). The political risk of a country is a key consideration for iinvestors hoping to bug out into a new market. Another journalist, Kimball states that the most threatening political risk of expansion to Colombia is social unrest within the country and the high level of corruption (2011, para. 2). It has been stratified among the worlds most cutthroat countries, due to the guerrillas and drug gangs.