Monday, November 8, 2010
Business in the developing world
In this Economist article Mexico is said to be one of the easiest places to do business in Latin America, even above Brazil. These results are based on a World Bank survey that pointed out factors of decreasing bureaucracy that should make Mexico an attractive place to start a business, especially as the only Latin American country where you can pay your taxes online. However, the World Bank survey neglects to take into account corruption which the article points out by citing a business owner who recommends paying in cash unless you want to pay twice. This just proves some of the problems of starting/running a business in a country without firmly established institutions, you never really know what you're gonna get.
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4 comments:
I believe Latin America has great potential for FDIs and companies looking to expand into these countries. However, companies have to realize there is great risk in dealing with a government which is unstable and corrupt. There is currently a drug war going on in Mexico and there are regions where even the Mexican Government does not fully have control of their own country. Staying in a safe place for a company is important to all aspects of production and even to the employees themselves.
I see Asia as a better place for FDIs inflow, especially when it comes to economy. Growth rate in East Asian countries are very stable and plus there is a much lower crime rate. Like Phillip said, drug war in Mexico really has a negative effect on the number foreign money invested in the country. Corruption is a big problem in developing countries yet it can be a huge benefit for investors who know how to manage it. For instance, it's so much easier to make a deal if we know our partner well in advance
These are the another oppurtunities to be a successful in earning money's. But for the best rising of the business we should be stable and persistent, and be added to the Paginas Amarillas for them to know
by the other client's.
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