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Final Global Business Plan Paper

5842 words - 23 pages

Findings Summary and RationalizationRisksPolitical/Legal/Regulatory RisksAt least half a million Haitians live in the Dominican Republic, working primarily in agriculture, and construction. According to the Amnesty International report issued on March 21 2007. "Each year, 20,000 to 30,000 of these workers are deported, with judicial oversight" Another problem with deportation of the Haitians is the deportation of the Dominican people based on the similarity to the Haitian people. With the Dominican Republic trying to build on their economic growth, the loss of 20,000 to 30,000 yearly workers, puts a strain on not only on the economy but also on the lives of the non-Haitians being deported. (Amnesty International USA 2007) The loss of workers yearly does not include the deportation of the non-Haitians that were deported incorrectly.Human Rights has also been a problem in the past with little improvement, problems still remain. Currently there have been reports ranging from unlawful killings, to under age workers (U.S Department of State, 2007). Many public and political figures are not being held accountable for any malicious actions that would other wise are considered breaking the law.With an economy growing at an average rate of 7.7 percent, the Dominican Republic entered the Central American Free Trade Association that eliminated over 80 percent of tariffs instantly. Aside from the negotiations to enter the CAFTA the United States also requested better protection to foreign investors by the Dominican government.Exchange and Repatriation of Funds RisksIn the past, investors doing business in the Dominican Republic had to register with the Central Bank in order to invest in and out of the Dominican Republic. This also made it harder to withdraw funds from the Dominican Republic. With the Central Bank controlling the foreign exchange, it made current and potential investors think twice about doing business in such a country. Today, the Dominican Republics foreign investment law has eliminated the requirement of having to register any investments conducted in the country.Competitive Risk AssessmentThe Dominican Republic's production of all organic certified bananas globally, helps build on the economy. The Dominican Republic, which is apart of the Windward Island, is having a hard time trying to complete in a free market due to the production and exporting cost.Taxation and Double Taxation RisksDue to the liberalization of the Dominican Republic, trade barriers have been reduced through out the years. Despite the Dominican Republic's liberalization, custom duties and tariffs represent a portion of the Dominican Republics tax collections. Currently the Dominican Republic is not really facing any taxation risks due to the signing of the free trade agreement with United States, which will help eliminate 70% of imports from duty rates.Market Risks (4 Ps)The Dominican Republic faces few issues when it comes to market risks. The market prices are...

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