Exporting and Economic / Political Systems, Essay Example

Starting a business in Brazil has some opportunism and threats to the global business venture when looked from the perspective of the economic and political environment. The opportunities in Brazil when looked regarding political environ is that it is stable and the past elections have proved that the country is always ready to have leaders who will drive the economy towards a prosperous future. This means that the global business, in this case, will enjoy the political stability that is in Brazil.

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A threat in Brazil can be seen regarding the economic environment. The country was previously doing well, and it was ranked among the eight largest economies in the world. However, this changed in the year 2015 when it underwent a recession that was regarded as the worst in the world (Factbook). The country is still trying to reduce government spending and also reduce the barriers to foreign investment to become stable. This means the global business at hand will not do well in the Brazilian economy as this is a threat to its existence. As an entrepreneur, it means I will have to face the risk of making loses having in mind that the recession in the country has not been controlled.

Cuba is a country that has also been trying to make it in the business world and possesses some opportunities to business ventures when looked at the political system that it has. Cuba is based on a communist type of government, and that means a global business will face the opportunity of being in a naturally united country. A communist political environment is in most cases stable, and that means the business will not meet any objections (Index 3). The economic situations in the country will pose a threat to the business venture because Cuba is still taking part in negotiations to have some economic reforms (Factbook). The economy is still poorly performing that means it would not be a good idea to start up a global business in the country. As an entrepreneur, it means that it will face the risk of the business being closed down due to the uncertain business reforms that are yet to be implemented in the country.

The opportunities in China are evident when looked at the political environment that it has. The country is also based on a communist type of government, and that means most of the decisions are made by the people (Factbook). In that case, global business in this country would do well with no sudden changes occurring. A threat would come up when looked from the perspective of the economic status of the nation. Many parts of China are still on collectivized business, and this would affect a global business as it will have to follow all the rules and regulations that they have put in place. As an entrepreneur, it means that I will have to face the risk of operating in an economy that is governed by forces of the market which are predictable.

As an exporter to these countries, I would mitigate the risks by first developing a better understanding of the economic and political climate of the target markets (Brazil, Cuba, and China). This would be done by doing a pilot survey of the target market to get an assurance that it is in the right place and there are no failures that are likely to come in that line (Kurtzman 5). The process at is taken or followed to understand the target market or the business environment will determine whether I will venture into it or not. The three countries have different political climates, and this has a significant impact on the investors and people who have the desired to take part in entrepreneurship.

Works Cited

Factbook, C. I. A. "The world factbook." https://www.cia.gov/library/publications/the-world-factbook (2010).

Index, Global Peace. "Vision of Humanity." Retrieved September 19 (2010): 2011

Kurtzman, Joel, and Glenn Yago. Global edge: Using the Opacity Index to manage the risks of cross-broader business. Harvard Business School Press, 2007