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Comprehensive Analysis Outline

1569 words - 6 pages

In this paper, Team A will discuss key factors about the country of Philippines and a possible global business venture to import organic products. Nutra Source Trading Co., LLC is a company based out of Columbus, Ohio that is looking into exporting organic products into the Philippines for a global business venture. Some of the key factors that Team A will discuss are the region analysis, country analysis, organization, and product and service analysis.Region AnalysisRegion alliances and economic integrationIn 2008, the Philippines imported roughly $58 billion dollars in imports. According to the United States Central Intelligence Agency (CIA), in 2007, the Philippines imported from the following countries: the United States of America (US), Japan, Singapore, Taiwan, China, Saudi Arabia, South Korea, Malaysia, and Thailand (CIA, 2009). In addition, the Philippines in 2007 exported to the US, Japan, Hong Kong, China, Netherlands, Singapore, Malaysia, and Germany. The imports and exports to other counties demonstrate the Philippines regional alliances and economic integrations.Physical environment and its effect on tradeThe Philippines consist of three main island groups that have 17 regions. The three main Philippine islands, Luzon, Visayas, and Mindanao are located in Southeastern Asia between the Philippine Sea and the South China Sea (CIA, 2009). The Philippine regions are administrative divisions that serve the counties 80 provinces and 120-chartered cities (CIA, 2009). Due to the Philippines consisting of islands, Nutra Source Trading Co., LLC (Nutra Source) needs to consider the transportation costs for importing. The Philippines physical environment in each region differs, which could affect the transportation costs from region to region or island to island. The cost of transportation is a detrimental effect on Nutra Source profits.Political stabilityThe Philippines take after the US in government regulations. They have a representative democracy government with a separation of powers among their judicial, executive, and legislative branches. Currently one president, Gloria Macapagal-Arroyo (Macapagal-Arroyo), governs all the Philippine regions. The president serves a six-year term and the next elections are in May 2010. The Philippines regions demonstrate their political stability by having an organized representative democracy governmentEconomic conditionsEconomic growth in the Philippine regions has grown an average of 5% since President Macapagal-Arroyo took office (CIA, 2009). The general macroeconomic outlook for the Philippines regions have drastically changed since Macapagal-Arroyo's Presidency. Macapagal-Arroyo pushed for new revenue, tightened expenditures, declined the deficit, tapered the debt ratios, and helped increase spending on infrastructures (CIA, 2009). The economic growth is proof that Macapagal-Arroyo has helped the Philippines regional economy expand.Finance options availableIn 1977, the Philippine Export-Import...

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