Macroeconomic Analysis Of BNP Paribas
BNP Paribas is a bank that resulted from the merger of BanqueNationale de Paris
(BNP) and Paribas in 2000. It is the largest bank in Europe with 2014 revenues of €39.2 billion in 2014.
BNP Paribas is located in 75 countries (BNP Paribas US, 2015), 29 in Europe.(See
Table 1 in the Appendix.) Most of these countries are among the highest rated by World
Bank (2015) and by various rating agencies (Trading Economics, 2015). The bank is present in the majority of World Banks’s high income countries. It is also located in many lowincome to upper-middle-income countries. (2015)
Evaluation and selection of new location
To select the location, a short list was generated. A quick and general macroeconomic analysis of all possible candidates was done to …show more content…
A company does not need to seek permission to do business using foreign exchange. (Ministerio de Relaciones Exteriores, 2013) At the same time, some laws can contravene free market practices. For instance, protection of the consumer is very important. Thus, there are laws restricting the sale of certain products. (US
Department of State, 2012)
Because of some restrictive laws, Peru is classified as ―moderately‖ in the Economic
Freedom Index. It ranks 47/178 and is rated 67.7%. As earlier mentioned, the government controls much—67.7% —of the economy. (Heritage Foundation, 2015)
I n v e s t i n g i n P e r u | 6
Depending on the kind of banking operations, different laws and rules apply. A general view of the laws that apply to business in general are provided in the government published Doing Business in Peru(Ministerio de Relaciones Exteriores, 2013).
The Central Reserve Bank of Peru regulates the country’s banking and financial industry. The rules and regulations are outlined in the General Law of the Financial and
Insurance Systems which was adopted in 1996. Because of the presence of many global banks, many changes were incorporated into the law to allow local companies and …show more content…
Environmental factors
With regard to the environment, Peru has one of the world’s most ―megadiverse‖ natural environments and ecosystems (Globe International, 2015). Along with Cuba, it is the most successful country in sustaining environmental conservation and protection. It has sustained its environmental programs through the years amid its rapid economic growth. In spite of infrastructure development, the country has been able to cut down illegal logging and other deforestation activities and hope to be able to put a stop to these in the short term.
(Singer, 2012)
The country is an ideal place for corporate advocacies and corporate social responsibility activities. With government support, a company can develop programs that could be showcased to the world.
The country has been successful in building infrastructure and sustaining environmental conservation. It now has 191 airports, 137,327 km of highways and 1,906 km of railways.
I n v e s t i n g i n P e r u | 7
SWOT Analyses
A SWOT (Morrison, 2013)—strengths, weaknesses, opportunities and threats— analyses was undertaken to assess whether entering the Peru market would be worthwhile.
(See Table 6 for summary of SWOT
(BNP) and Paribas in 2000. It is the largest bank in Europe with 2014 revenues of €39.2 billion in 2014.
BNP Paribas is located in 75 countries (BNP Paribas US, 2015), 29 in Europe.(See
Table 1 in the Appendix.) Most of these countries are among the highest rated by World
Bank (2015) and by various rating agencies (Trading Economics, 2015). The bank is present in the majority of World Banks’s high income countries. It is also located in many lowincome to upper-middle-income countries. (2015)
Evaluation and selection of new location
To select the location, a short list was generated. A quick and general macroeconomic analysis of all possible candidates was done to …show more content…
A company does not need to seek permission to do business using foreign exchange. (Ministerio de Relaciones Exteriores, 2013) At the same time, some laws can contravene free market practices. For instance, protection of the consumer is very important. Thus, there are laws restricting the sale of certain products. (US
Department of State, 2012)
Because of some restrictive laws, Peru is classified as ―moderately‖ in the Economic
Freedom Index. It ranks 47/178 and is rated 67.7%. As earlier mentioned, the government controls much—67.7% —of the economy. (Heritage Foundation, 2015)
I n v e s t i n g i n P e r u | 6
Depending on the kind of banking operations, different laws and rules apply. A general view of the laws that apply to business in general are provided in the government published Doing Business in Peru(Ministerio de Relaciones Exteriores, 2013).
The Central Reserve Bank of Peru regulates the country’s banking and financial industry. The rules and regulations are outlined in the General Law of the Financial and
Insurance Systems which was adopted in 1996. Because of the presence of many global banks, many changes were incorporated into the law to allow local companies and …show more content…
Environmental factors
With regard to the environment, Peru has one of the world’s most ―megadiverse‖ natural environments and ecosystems (Globe International, 2015). Along with Cuba, it is the most successful country in sustaining environmental conservation and protection. It has sustained its environmental programs through the years amid its rapid economic growth. In spite of infrastructure development, the country has been able to cut down illegal logging and other deforestation activities and hope to be able to put a stop to these in the short term.
(Singer, 2012)
The country is an ideal place for corporate advocacies and corporate social responsibility activities. With government support, a company can develop programs that could be showcased to the world.
The country has been successful in building infrastructure and sustaining environmental conservation. It now has 191 airports, 137,327 km of highways and 1,906 km of railways.
I n v e s t i n g i n P e r u | 7
SWOT Analyses
A SWOT (Morrison, 2013)—strengths, weaknesses, opportunities and threats— analyses was undertaken to assess whether entering the Peru market would be worthwhile.
(See Table 6 for summary of SWOT