International Trade and Brief Company Profile

Political-Legal Environment Countrys differences in relation to policy-making and legal systems can have dramatic impact on the benefits, cost and lucks associated with overstateing a business transnationalisticly (Hill, 2008, p. 219). In order to make a sanitary analysed decision on feasibility of expansion of Octahedron into either Mexico or Colombia, the policy-making-legal purlieus of each country must be researched and analysed. Beginning with Mexico, the flow rate organisation type of Mexico is a Federal Republic.Question ofFEDERAL TRADE athttps//donemyessay.com/apush-chapter-29/The current government is in the process of improving many of the countrys economic challenges, in particular, the make betterment and modernisation of labour laws. According to online website disappear by the U. S Department of State (2011, para. 7) the Presidents main(prenominal) priorities are to create more job opportunities within the country, which can be interpreted that the country i s open to international business expansion, as it lead provide more jobs within the country, which in turn leave behind meliorate the economy of Mexico.However, there are some setbacks in the way of semipolitical risks if Octahedron were to expand to Mexico, as it is very difficult to improve such things with so much corruption in the country and a high beat of organized crime 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 working 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 mostly be attributed to the North American Free Trade 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 by and by 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, working with a free trading country will save costs of imports and exports (2011, para. 1), therefore increasing the companys profitability. However, the political-legal environment of Colombia must also be analysed as a potential sham for international expansion of Octahedron. The form of government currently running is a Constitutional Republic. According to journalist Pablo Mejia (2011, para. 2) Colombia is perhaps best known 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 ex Colombia has had a dramatic decrease in crime rates, increase in pro-business politicians w ho have encouraged more openness to foreign trade (2010, para. 3). The political risk of a country is a key consideration for iinvestors hoping to step to the fore 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 train of corruption (2011, para. 2). It has been ranked among the worlds most violent countries, referable to the guerrillas and drug gangs.