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business level 3- unit 5 international business- assignment 2
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Assignment 2- Unit 5international business
20.2.24
Assignment 2
External factors and cultural
differences
, Introduction
This assignment has been written on behalf of the local chambers of commerce. This report
will investigate the external factors that influence international businesses and investigate
the cultural factors that affect international businesses. The report will discuss if Tesco is
most suitable to enter the market in Canada or Mexico. There will be a swot and pestle
analysis on Canada and Mexico as well as an overall conclusion as to which country is the
most suitable for Tesco.
Section 1- P5, M3, D2, P6
P5- pestle analysis on Canada and Mexico
(1 how and what) (2 swot and pestle)
Political
Canada is known for its stable democracy and is ranked number 2 in the G7 countries for
being politically stable. Canada alongside the United States is known for being the world
largest trading partners with many countries including low-income countries such as
Mexico. As well as this, Canada has certain policies put in place to encourage trading with
foreign countries and to maintain their economic stability which allows them to successfully
operate their businesses in Canada. Canadas government is also known for its commitment
and transparency to human rights.
However, Mexico is ranked low as one of the countries that aren't as politically stable. In the
past, Mexico has faced a lot of challenges regarding its security and corruption it faces such
as politicians, police and judiciary being accused of bribery and corruption within the
government. This could affect its economic growth due to all the corruption it receives. The
NAFTA agreement proves Mexico has good trading relations with both Canada and the USA.
Because of this, Mexico has faced positive relations with other countries in the world.
Economic
Canada being the second largest country in the world by area has both a diverse and strong
economy with many industries such as manufacturing and natural resources. Canada is one
of the 10 largest economies in the world. Unemployment rates, exchange rates and inflation
have affected Canadas economic landscape both positively and negatively. For example,
unemployment rates affect individuals as less money is being made for the economy.
Canada Inflation Rate is at 3.40%, compared to 3.12% last month (3 y charts.) Exchange
rates impact Canadas investment and international trade with other countries. And lastly,
inflation can affect consumer purchasing. Canada has signed the NAFTA and CETA
agreement to increase trade with other countries and exports their goods and services to
other countries. Canadas employment rate is currently at 5.4% (4 Statista.) As well as this,
Canadas borrowing rate stands at 7.2% (5 Statista.)
Mexico has the 15th biggest economy in the world and its likely to keep growing. Most of
Mexico's exports go to other countries such as US, Canada and Germany. Mexico's top
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