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Cross Country Analysis For A Churro Factory

By Edited Jan 12, 2016 0 0

Our team has just completed our preliminary country risk analysis. I believe we have some eye opening data that will help find the appropriate suitor for our newly designed churro dipper factory. Let's not waste too much time (or churros) and get down to business. With this three country analysis, we hope that you can open a churro factory in any country that you wish to.

Mexico – With a population of over one hundred million, this democratic nation has seen some violate times as of lately. A member of the NAFTA, most of the economy does rely on the commercial relations with the United States. A large part of Mexico' recent problems have been with the ever growing fight against organized crime and illegal drug growth and movement. Some cities along the US borders have been deserted from such chaos, as seen in Juarez, Mexico and its 1,500 murders last year. Mexico also has many other good points. Civil and Political liberties are on the higher end of our scale, and it is Latin American country which has freedom. Government holdings have been reduced in such areas as banking and investment and the country holds fairly low labor rates. We have two large and extremely apparent issues with Mexico, and those are corruption and the inability of the government to stop it and deal with organized crime effectively.

China – An enormous country with a population ten times that of Mexico, began to free itself from business and economic laws in the 1980's. The economy has grown leaps and bounds since then, especially in the manufacturing sectors. This should make the placement of factories in China a simple task, but China has many problems as a whole. The communist party can place rules over you in an instant…as we saw during the Olympic Games; China ruled that you couldn't drive cars or operate factories within so many miles of the games because of smog. Corruption, property rights, and a lack of enforcement with the court system are many of the factors that drive away investors and businesses.

Poland – A European Union member who has shown great growth since it was released from Soviet control in 1989. Poland exhibits many good or improving qualities that we would like to see in a host country. It exhibits corruption levels below those of China and Mexico and has a moderately economic freedom. Civil and political liberties are about as good as they can get. One main point we like is the need for skilled workers. Poland, being a member of the E.U., grants any other citizen of the E.U. to be relocated and employed without much hassle, such as with countries like the U.S. or Russia. This means that instead of searching for these workers where there are none, or importing them, then can look throughout the entire European Union for them. This isn't to say that Poland has no problems. We can see some of those within the areas of property rights, business freedom and the size of the government, Poland is fairly weak in those three areas, but in general, Poland is above the fold versus many countries.

As you can see, our research has shown that we should be looking into placing our new churro dipper factory in Poland. Poland is a country where we will not run into as much government red-tape, lack of personal freedom or rights, and still manage a cheap and efficient factory. We would not have to worry about all the headaches Mexico and China could bring us with corruption, government intervention, or blatant organized crime. While we honestly did not expect Poland to be the possible suitor, this is what our research has taken us to, and the numbers do not lie.

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