Country Risk and Strategic Planning Analysis Paper
This paper will analyze the globalization process of opening a communications business in the country of India. The risks in politics, marketing, distribution, social, and cyber technologies will be addressed along with examples of these risks. A summarize planning process will also be composed and evaluated.
Taxation and double taxation risks
Taxation risk is enormous in almost any country. With so many tax laws, a company has many things to fear. Even with a fair tax treaty signed with other countries corrupt government officials can make doing business extremely hard. Most countries have some kind of tax treaty. India has favorable tax laws for businesses. One risk that can happen is a new government comes into power and changes the tax laws.
Double taxation is one of a company’s worst nightmares. Double taxation occurs when the company or person is taxed twice for the same product. To attract more business in countries have created treaties with those countries that sign. The countries that sign the treaties arrange to prevent double taxation. India has signed such a treaty with dozens of countries to eliminate an unfair practice. Countries that do not have treaties can stifle their plans for attracting future business.
Market Risks (4P’s)
To analyze the marketing risks the four “P’s” of marketing will be addressed. They are Product, Price, Place and Promotion. In introducing the communication enhancement company to the country of India, the four “P’s” of marketing will be evaluated.
The product is specialized and exclusive to this region and market area. At this time, there are no other services comparable that are offered in the country of India. With this in mind, direct competition is not a particular issue. This allows for the first introduction to the region and allows first launch and market positioning.
Price will be based upon hours required to complete each one of the...