Country Feasibility Report
BSB119 – Global Business
Country Feasibility Report
Bolivia & Paraguay
Prepared by
Dean Contessa, Eileen Hui, Luke Swenson, Samantha Oswald & Xiaotian Yang
Table of Contents
EXECUTIVE SUMMARY
This report analyses the basic information of Bolivia and Paraguay to suggest to SolarLife Ltd Ltd which country is suitable to export their solar powered equipments. Through comparing the business environment, political and legal environment, economic environment and social and cultural environment, SolarLife Ltd will enter the country via FDI.
Business environment, which contains trade agreements, taxation and tariffs and ease of doing business rankings, is the first factor that we should consider. Bolivia and Paraguay have the same trade agreement named MERCOSUR. Although tariffs in Paraguay are higher than Bolivia, the tax for manufacturers is much lower than Bolivia. Moreover, it is easier to do business in Paraguay.
Stable and positive political and legal environments make a contribution to a successful business. Paraguay’s political environment is more stable than Bolivia because Bolivia’s new policy was founded in 2005 and has been turbulent in the past. Furthermore, the international court settled in Paraguay makes it more attractive to SolarLife Ltd.
Both countries’ are low ranking in the world economies, . Although Bolivia has a stronger economy at the moment, however Paraguays economy is growing more rapidly then Bolivia’s at present.
Consumer spending patterns in Paraguay are more favourable to SolarLife Ltd’s products because the markets in Paraguay are willing to outlay for premium quality products compared with Bolivia.
These factors illustrate that Paraguay is the better choice for SolarLife Ltd Ltd to enter. The mode of entry is to through exporting, as this would allow the company the ability to exploit the experience curve and locations economies. The next step for SolarLife Ltd may be has a talk with
Country Feasibility Report
Bolivia & Paraguay
Prepared by
Dean Contessa, Eileen Hui, Luke Swenson, Samantha Oswald & Xiaotian Yang
Table of Contents
EXECUTIVE SUMMARY
This report analyses the basic information of Bolivia and Paraguay to suggest to SolarLife Ltd Ltd which country is suitable to export their solar powered equipments. Through comparing the business environment, political and legal environment, economic environment and social and cultural environment, SolarLife Ltd will enter the country via FDI.
Business environment, which contains trade agreements, taxation and tariffs and ease of doing business rankings, is the first factor that we should consider. Bolivia and Paraguay have the same trade agreement named MERCOSUR. Although tariffs in Paraguay are higher than Bolivia, the tax for manufacturers is much lower than Bolivia. Moreover, it is easier to do business in Paraguay.
Stable and positive political and legal environments make a contribution to a successful business. Paraguay’s political environment is more stable than Bolivia because Bolivia’s new policy was founded in 2005 and has been turbulent in the past. Furthermore, the international court settled in Paraguay makes it more attractive to SolarLife Ltd.
Both countries’ are low ranking in the world economies, . Although Bolivia has a stronger economy at the moment, however Paraguays economy is growing more rapidly then Bolivia’s at present.
Consumer spending patterns in Paraguay are more favourable to SolarLife Ltd’s products because the markets in Paraguay are willing to outlay for premium quality products compared with Bolivia.
These factors illustrate that Paraguay is the better choice for SolarLife Ltd Ltd to enter. The mode of entry is to through exporting, as this would allow the company the ability to exploit the experience curve and locations economies. The next step for SolarLife Ltd may be has a talk with