International Trade and Brief Company Profile

Political-Legal Environment Countrys differences in relation to political and legal systems can have dramatic adjoin on the benefits, costs and risks associated with expanding a course internationally (Hill, 2008, p. 219). In army to make a well analysed decision on feasibility of blowup of Octahedron into either Mexico or Colombia, the political-legal environments of each realm must be researched and analysed. rootage with Mexico, the current g overnment type of Mexico is a Federal Republic.Question ofFEDERAL workmanship athttps//donemyessay.com/apush-chapter-29/The current government is in the process of improving galore(postnominal) of the countrys economic challenges, in particular, the repairment and modernisation of lying-in laws. According to online website run by the U. S Department of State (2011, para. 7) the chairmans main priorities are to create more job opportunities inside the country, which can be interpreted that the country is open to international busine ss expansion, as it will provide more jobs within the country, which in frolic will improve the economy of Mexico.However, there are some 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 degeneracy in the country and a high amount of organized nuisance on the streets. Such corruption often scares international iinvestors away, as it is not worth risking ones life to expand a business internationally. However, the current government is workings hard to improve this situation and have assisted Mexico in dramatically improving international trade.According to online website Encyclopaedia of the Nations (2012, para. 4) the success of this can virtuallyly be attributed to the North American Free employment Agreement (NAFTA) which they joined in 1994. As well as NAFTA, Mexico is part of another Free Trade Agreement with the European Union. These agreements set Mexico up as a highly sought after country for international expansion, as it is one of the scarcely 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, working with a free transaction country will save costs of imports and exports (2011, para. 1), therefore increasing the smart sets 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 shortly running is a Constitutional Republic. According to journalist Pablo Mejia (2011, para. 2) Colombia is perhaps vanquish known as one of the highest drug trading countries in the world, which is neer a positive 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 encou raged more openness to irrelevant trade (2010, para. 3). The political risk of a country is a key fruit consideration for iinvestors hoping to emerge into a new market. Another journalist, Kimball states that the most ominous political risk of expansion to Colombia is social unrest within the country and the high level of corruption (2011, para. 2). It has been ranked among the worlds most violent countries, due to the guerrillas and drug gangs.