Attractiveness Of Spanish Investment Environment Compared To Uruguay - 2750 Words

The Attractiveness Of Spanish Investment Environment Compared To Uruguay (Research Paper Sample) Content: INTERNATIONAL BUSINESS ANALYSISStudents NameCourse NameProfessors NameInstitutional AffiliationDateTable of ContentsIntroduction 1The attractiveness of Spanish Investment Environment compared to Uruguay 2PESTEL Analysis 3Political factors ..Economic factors ..Social factors ..Technological factors .Environmental Factors ..Legal factors .Advantages and Disadvantages of using Spain 4Currency GDP ..Tax/Tariff ..Policy Culture Transportation .Labor cost .Risk Analysis 5Financial Risk .Cross-Culture Risk .Country Risk ..Commercial Risk .Conclusion 6INTERNATIONAL BUSINESS ANALYSISIntroductionThe world has become a global village due to growth and development of technological advancements. The digitalization of things and issues has made communication easy, fast and reliable. Similarly, technology has impacted positively on the transport sector such that the technological innovations have heightened movement from one place to the other. Therefore, it has become natural and u rgent for business to expand to the international market competing with other providers around the globe. Venturing into the global market has become the new trend of doing business for every entity. The move helps in increasing the sales thus resulting in increased return on income, revenue as well as profits for the industry. Additionally, venturing into the international market increases a companys product or service market share in the global arena.The choice to have Spain as the entry point and country into the Spanish speaking nations and Latin America over Uruguay is a brilliant strategy by the British firm. Concerning the location of the three states, Britain is located in the central part of the European continent while Spain is at the south-western part of the same. As for Uruguay, it is located in the south-eastern part of South America which is also known as Latin America and well known for its Spanish speaking culture. However, Uruguay is located way too far from Britai n making the distance undesirable concerning the operation costs involved in doing business overseas. On the other hand, Spain is located closer to Britain and at the same time strategically placed to access Latin America. Thus, Spain takes the upper hand over Uruguay as the country the British firm should use as the entry platform for doing business in the international market of the Spanish speaking world. It is worth noting that Spain is a member of the European Union which Britain was also party to before Brexit. Additionally, both Spain and Britain use the same form of currency which is the Euro thus making business transactions easy as the currency is not subject to foreign exchange rates and currency fluctuations.The attractiveness of Spanish Investment Environment compared to UruguaySpain is more conducive and attractive as an entry platform for the British firm into the Spanish speaking world and particularly Latin America than Uruguay. According to the World Bank cost of d oing business indicators, Spain is ranked at number 28 in the 2017 report CITATION Wor17 \p 5 \l 1033 (Worldbank, 2017, p. 5). Consequently, the economy ranking of Uruguay in the same year was at number 94 worldwide compared to Spain at position 28. Thus, going by those results in the 2017 World Bank economy rankings, Spain stands a higher chance than Uruguay for a British firm to expand their business in the country. The ease of doing business in Spain ranks more elevated than in Uruguay although that of starting up a business in the same state ranks lower than Uruguay according to economy rankings. Similarly, World Bank records of the year 2017 show that dealing with construction permits, getting electricity and registering property in Spain is comfortable and ranks higher in the economy rankings than in Uruguay. Therefore, it is advisable for the CEO of the British firm to take advantage of Spain as an entry platform to invest and venture into the Spanish speaking world. Spain has a competitive edge over Uruguay as an entry point for new business into the international market.The British f...