Pest Analysis Paraguay

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Date Submitted: 10/05/2014 01:49 PM

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POLITICAL ENVIRONMENT

* Paraguay today enjoys stability since the end of the dictatorship.

* Paraguay is a constitutional democracy not consolidated but is on the way to achieve this goal.

* There is a disenchantment of the population which translates into an increasingly discredited of the institutions and persons discharging managerial responsibilities of power but this is a tendency both in Paraguay and other Latin American countries where the democratic tradition is relatively new.

* The perceived degree of corruption also contributes to this feeling. For several years, the index of perception of corruption 'Transparency International' Paraguay ranks as one of the most corrupt countries in Latin America.

* Faced with this challenge, the government attempted repeatedly his determination to fight corruption, but their success has been limited by various political factors like Disagreements between the legislature and the executive.

* The main challenges currently facing Paraguay consist of reconciling economic growth and budgetary rigidity, while the rule of law is consolidated and public institutions are strengthened.

* In the economics and international business Paraguay has started many policies to enhance the international trade in order to:

1. Facilitating the procedures and formalities for export.

2. Establish strategic partnerships that further the conditions for exporters.

3. Establish growth strategies for each sector, supporting businessmen / women in their efforts to increase their sales abroad.

4. Promote national awareness and export competitiveness.

5. Encourage the export of non-traditional items.

ECONOMIC ENVIRONMENT

* Paraguay is part of the Southern Common Market (MERCOSUR) and the Latin American Integration Association (ALADI) and is classified by the International Monetary Fund as a developing country. The Country in the economic sphere can be considered stable but has a limited...