Международный бизнес — выход Stilsoft на рынок Мексики — PESTLE, SWOT, TOWS

Socio-Cultural

Brazil is the largest country in south America and fifth largest in the world, with a population of 209,288,278 people (2017). The country is one of the most multicultural and ethnically diverse in the world, due to over a century of mass immigration from around the globe. 48% of the population is white, 44% pardo (multiracial), 8% black, 0.6% Asian and 0.3% Amerindian (natives). Moreover, about 5 million people migrated to Brazil between 1808 and 1972 from over 60 countries, in particular Portugal, Italy, Spain, Germany, Ukraine and Poland. The population growth rate is equal to 0.8% in 2017.

The population is heavily concentrated in the Southeastern and Northeastern regions, while the two most extensive regions, the Center-West and the North are much less populated. South and southeast region, where the metropolis of Rio de Janeiro and São Paolo are located, are the most developed parts of the country and hold the best standard of living. These areas account for the biggest portion of GDP per head.

The median age of the total population is 31.28 years (2015); the largest age group is 25-54 years, accounting for about the 44% of the total population (about 91 million people).

Literacy rate amounts to 92.6% in 2017. Inequality in the distribution of wealth across the population is still a problematic issue, despite the general improvement.

Christianity is the largest religion in Brazil, with Roman Catholics having the most adherents ((64.8%). Evangelical Protestantism has grown in 21st century to 22% of the population. The remaining part is represented by other religions and atheism.

Technological

Brazil is a world leader in petroleum exploration in deep water and leads researches on first- and second-generation biofuels. Moreover, Brazilian automation system is the most advanced in the world according to the World Bank and International Monetary Fund. Telecommunications system and digital TV are among the most developed in the world as well.

The country’s expenditure in Research and Development accounts for 1.16% of the GDP. In addition, great number of startups have recently developed in the country.

Legal

Brazilian law is based on the civil law legal system. The legal system is based on the Federal Constitution, promulgated on 5 October 1988, and is the fundamental law of Brazil. The highest court is the Supreme Federal Court.

Brazil is a highly bureaucratic country. Opening any sort of business in Brazil involves large amounts of paperwork, there are still numerous regulations and it is a lengthy process. Brazil ranks 125th in ease of doing business, behind other countries in Latin America and major emerging markets in the world. Starting a business is easier in the states of Minas Gerais and Rio Grande do Sul. It is most difficult in Sao Paulo, Ceara, and Maranhao. The time to start a business varies widely across states- from 19 days in Minas Gerais to 152 days in Sao Paulo. It takes 19 different steps to start a business in Ceara, and 18 in Maranhao and Santa Catarina. Government is showing effort in helping investors by providing manuals and lists of necessary bureaucratic instruments needed to start a business or to obtain the necessary licenses.

Brazil has signed a bilateral agreement on avoiding double taxation with most countries. There are specific laws regulating pricing models as well. Also, every enterprise is required to pay extra (13th bonus) salary to its employees.

Environmental

According to Kyoto Protocol, Brazil is one of the largest emitters of greenhouse gases. However, the government’s commitment in environmental policies to stop deforestation and emissions has increased substantially in last years. In addition, specific regulations have been adopted to compel companies to adopt eco-friendly combustion techniques

2.2

PESTLE analysis: Mexico

Political

Mexico is a federal republic. The Mexican Federation comprises 31 states and the federal capital Mexico City, which is a special entity. The government is representative, democratic and republican based on a presidential system according to the 1917 Constitution. The 1917 Constitution establishes three levels of government: the Federal Union, the State Governments and the Municipal Governments. The federal legislative power is represented by the bicameral Congress of the Union, composed by the Senate of the republic and the Chamber of Deputies. The executive is the President of the United Mexican States, who is the head of state and government, is elected by universal adult suffrage for a 6-year term and may not hold office a second time. The current President is Andrés Manuel López Obrador.

The federal framework of the country has an important impact, since actions by the federal government widely affect the activity of firms. Regulations concerning business practices differ between provinces and also tax rates vary widely.

One of the main issues in Mexico is the still the high rate of poverty, and the IMF and World Bank programs, which were supposed to reduce poverty, were actually poorly effective. The country would need a new political economy designed by economists and politicians directly committed to Mexico and to the future of its society.

Mexico is founding member of several international organizations, most notably the United Nations, the Organization of American States, the Organization of Ibero-American States, the OPANAL and the Rio Group. In addition, it was the only Latin American member of the Organization for Economic Cooperation and Development (OECD) since it joined in 1994 until Chile gained full membership in 2010. Mexico is considered a regional power hence its presence in major economic groups such as the G8+5 and the G20. In addition, since the 1990s, Mexico has sought a reform of

the United Nations Security Council and its working methods with the support of Canada, Italy, Pakistan and other nine countries, which form a group informally called the Coffee Club.

After the War of Independence, the relations of Mexico were focused primarily on the United States, which is its largest trading partner.

The government expenditure amounts to 24.74% of GDP in 2018. The corporate tax is equal to 30%.

Economic

Mexico is the second largest Latin American economy and it has the fifteenth largest nominal GDP in the world (US$ 1,151.1 billion in 2017). The GDP based on PPP in current prices is equal to US$ 2,462.76 (2017). The GDP growth rate in 2017 was 2.0% and it has been subjected to substantial fluctuations in recent years.

It is classified by the World Bank as an upper-middle-income country. The nominal GDP per capita is equal to US$: 8,903 (2017). The unemployment rate accounts for 3.4% in 2017.

The average household net-adjusted disposable income per capita is US$ 13,891 per year. According to OECD, 21.5% of Mexican population lives in situation of poverty. Economic disparity between the extremely poor, mainly concentrated in the rural areas and the extremely rich in the most advanced urbanized areas, is still quite high (GINI index in 2016 = 0.434, medium). The HDI in 2017 is equal to 0.774 (high).

The inflation rate in 2017 amounted to 6.0%.

The Mexican economy is strongly linked to United States: Mexico is the United States second-largest export market and third-largest trading partner. The national electronics industry has grown enormously within the last decade, and nowadays it is the sixth largest in the world. The automotive industry is well developed as well: Mexico is the largest producer of automobiles in North America, and GM, Ford, Chrysler, Volkswagen, Nissan and Kia have plants in the country. The domestic car industry is represented by DINA and Mastretta. According to several estimates, Mexico could become the world’s fifth largest economy, by 2050.

Mexico offers some relevant advantages for foreign companies, such as labor costs comparable to Asia-based manufacturing, a strategic location between North and South America, a young and more skilled labor workforce with respect to other Latin American countries and a good governmental support to FDIs: these factors make Mexico a top choice for investors in this region.

Socio-Cultural

With an estimated population of 129,163,276 (2017) people, Mexico is the most populous Spanish- speaking country in the world and the second most-populous country in Latin America after Brazil. The country is ethnically diverse. The core of the Mexican national identity is formed on the basis of a synthesis of cultures, primarily European and indigenous cultures, in a process known as mestizaje. The growth rate of the population is 1.3% in 2017.

About 76% of the people live in urban areas. Many Mexicans emigrate from rural areas that lack job opportunities, such as the underdeveloped southern states and the crowded central plateau, to the industrialized urban centers and the developing areas along the U.S. - Mexico border. According to some estimates, the population of the area around the capital Mexico City is nearly 22 million, which would make it the largest concentration of population in the Western Hemisphere.

The median age of the total population is 27.53 years (2015); the largest age group is 25-49 years, accounting for about the 35% of the population (about 45 million people).

Mexico has made great strides in improving access to education and literacy rates over the past few decades. In 2015, the adult literacy rate is 94.55%, increased from 87.56% in 1990.

Social mobility is still low, despite the increase in recent years, mainly due to the improvement of education levels.

The dominant religion in the country is Catholic Christianity, with a share of about 83% of the total population (2010). Protestant and Mormonism churches constitute 10% of the population, while the remaining share is represented by other religions or non-religious people.

Technological

The Mexican electronics industry is one of the most advanced in the world. Mexico is also the country with the third largest solar potential, and currently there are 1 million square meters of solar thermal panels. The project SEGH-CFE 1 in the Northwest is the largest solar field in Latin America. In technological field, the cooperation with the United States is very important and includes state and local problem-solving mechanisms, transportation planning, and resources, environmental, and health issues.

Legal

The highest organ of the judicial branch of government is the Supreme Court of Justice, the national supreme court. Supreme Court justices are appointed by the president and approved by the Senate.

The bureaucratic system is ponderous and often inefficient. Estimates of the cost of compliance per year vary widely, but could well exceed $100 billion annually. Many of these costs are passed to consumers. However, costs of legal expenses and settlements may not be incurred for years and are not likely to be paid by consumers of the product or owners of the company when the violation occurred. Still, potential legal action often results in higher prices for consumers and a more conservative attitude by business executives.

While the government generally respects the human rights of its citizens, serious abuses of power have been reported in security operations in the southern part of the country and in indigenous communities and poor urban neighborhoods. The judicial system is overburdened and overwhelmed with several problems. Despite the efforts of the authorities to fight crime and fraud, most Mexicans have low confidence in the police or the judicial system, and therefore, few crimes are actually reported by the citizens.

In 2008, president Calderón proposed a major reform of the judicial system, which was approved by the Congress of the Union, which included oral trials, the presumption of innocence for defendants, the authority of local police to investigate crime—until then a prerogative of special police units—and several other changes intended to speed up trials. Drug cartels are a further major concern in Mexico. Mexico's drug war has left over 60,000 dead and perhaps another 20,000 missing. The Mexican drug cartels have as many as 100,000 members. Mexico's National Geography and Statistics Institute estimated that in 2014, one-fifth of Mexicans were victims of some sort of crime. President Calderón made the eradication of organized crime one of the top priorities of his administration by deploying military personnel to cities where drug cartels operate: its effects have been positively evaluated by the US State Department, despite the critics from the opposition parties for escalating violence. Furthermore, more than 100 journalists and media workers have been killed or disappeared since 2000, and most of these crimes remained unsolved, improperly investigated, and with few perpetrators arrested and convicted.

A major development in late 2017 was the passage of a new national Internal Security Law (Ley de Seguridad Interior), which added a formal law enforcement mission in this field to the Mexican Secretariat of Defense (SEDENA) and the Secretariat of the Navy (SEMAR). The Mexican military had

will be increasingly active in pursuing drug cartels and coordinating all law enforcement entities, and the new law was intended to address mounting criticism that the military lacked clear rules of engagement and training. The law handed more law enforcement, surveillance, and investigative responsibility to state and local governments and set out rules for requesting security intervention by the Federal Police in cases that might affect national security. The law clarified that the Mexican military could only respond to a conflict if the Federal Police needed backup. Various human rights agencies and civil groups have brought concerns before the Mexican Supreme Court, but so far, the court has taken no actions to rule the law anti-constitutional.