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Paper Topic:

Country Analysis and Risk assessment report

COUNTRY ANALYSIS AND RISK ASSESSMENT REPORT

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Date

Abstract

This is about establishing a joint venture with a Mexican company to export packaged mangoes . It highlights the pros and cons of doing business with the country and the problems that might be faced It also focuses on the policies , labor , and laws grading standards and business culture so that business may be conducted between the two countries in the best possible way

Introduction

United States has an increasing demand for tropical fruits and each year we witness an

upward trend in imports . Out of the many tropical fruits we choose mangoes because the demand for mangoes is expected to increase in the US . Though the demand is still low , it is particularly popular among cities with high Latino and Asian population . However mangoes are appealing to a wider population and imports are expected to increase by 7 every year

Suppliers

We favor importing mangoes from Mexico as it is one of the top ten countries producing tropical fruits in the world . Though several tropical fruits like papaya , lime , avocados and pineapples etc , are grown in the country , Mexico is the largest producer of mangoes in the whole of Latin America and Caribbean . Since the country has a wide diversity in climate , it can produce mangoes during most of the year Currently Mexico grows mangoes in over 164 ,582 hectares producing about 1118 ,253 tons annually . Out of this , 12 is exported USA being the main export market . Another reason why Mexico is a favorable country to import from is because its mango production is expected to increase to 1 .9 million tons by 2010

Prices

Since Mexico can produce mangoes through most of the year , even though the prices of mangoes is elastic in most nations , we can make the price more stable with a somewhat consistent supply as supply stretches from March -September . The price at which we will get mangoes from here will be very competitive and will enable us to have a lot of profit

Grading and Standards

Mexican Mangoes Exporters ' Association has suspended the quality inspection at the b which may facilitate imports and save time However there are basic quality controls that have to be followed as defined by the United Nations ECE Standard FFV-45 . The mangoes should be intact and free from any foreign body , should not have black stains on them , should be fresh in appearance , clean , should not be marked or bruised , free from foreign smell and external moisture . There are 3 basic classes defined by the UN /ECE mango standards

Since the establishment of NAFTA in 1994 , there have been many positive changes in Mexico for trade development . Investment rules and regulations have been established , tariffs have been significantly reduced , created dispute settlement mechanism , improved protection of intellectual property rights . US goods enter Mexico practically duty free which means that any sort of machinery required for packaging or specific packaging

Materials can be sent without additional cost . Most agricultural Mexican...

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