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Peru Country Analysis Paper

944 Words4 Pages

It is necessary for doing a thorough analysis of any country if the decision is about investing in the same country (Howell, 2001). In this case, the exclusive analysis of Peru country shall be conducted looking at all avenues and factors that might impact investments in the country. Peru is in South America and Bolivia, Chile, Brazil, Colombia, and Ecuador border Peru. The form of government for this country is the constitutional republic. The president heads both the state and the government. The economy of this country is a mixed economy with some private freedoms, together with centralized economic strategies and government control.
Conducting business brings light on how simple it is for any home business person to set-up and operates …show more content…

Looking at the public investment concept we make note on the fact that it also did contribute to the growth of the country’s economy. There has been a recommendable decrease in poverty level to 23.9% as the economy has increasingly grown. The rise in economic growth has been linked to the effectiveness of the policies implemented by the President of Peru in the 1990s. Economic growth will be at its best level if attention is to the most important sectors of the nation. They include transport, telecommunication, energy, sports, and …show more content…

The plenty of labor in the economy makes it attractive for investors to outlook this country. However, several labor market regulations might affect the operation of international business. Labor laws are put in to ensure that workers are from exploitation. The cost of acquiring work in Peru is not high having in mind that they lowered the required yearly leave and reduced the severance premiums relevant in redundancy dismissals. Investing in a country with high availability of labor means that there will be increased production and revenues will be high. However, regardless of the measures put I place to protect the workers, there exists a large discrepancy in the labor market following the fact that large portion of the available labor in the Peru economy is not skilled following lack of a strong education system. It implies that although there are reduced labor costs, to some extent it will be expensive to buy skilled labor, and this makes it unattractive for conducting international business. Any investor who wishes to operate international business has no intentions to recording failure but from the look of things lack of skilled labor force in Peru means something else. This fact brings contradiction on what is in the labor force. Investors with operation risk fit best in this

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