Conclusion 1: Population
The ultimate goal for Australian Char is to be able to invest in the most lucrative market of the two available. One of the strongest indicator for an investor to consider is the population size, since the business would need to continue growing even in the wake of new competition. Chile has a very small population of only 17.8 million. In contrast, Mexico has well over six and a half times the population of Chile at 120 million. Mexico would be the preferred investment destination based on its large population size that provides an opportunity for the company to grow.
Conclusion 2: GDP per capital PPP
The GDP per capita PPP is selected as an important business indicator because it, “converts GDP to international dollars using purchasing power parity rates and divided by total population” (James, Gubbins, Murray, & Gakidou, 2012, p. 2). In simple terms, the GDP per capita PPP is the average of what everyone earns in the country. Chile has a higher GDP per capita PPP of US $ 23,563 as compared to Mexico’s US $ 18,335. Based on the GDP per capita PPP, Chile would be a better investment option because people earn more. Nevertheless, earning more does not necessarily translate into instant business for a company like Australian Char if the population is miniscule.
Conclusion 3: Inflation
The inflation rate affects the cost that a business incurs in its operations. A high inflation rate would influence the operating cost on a year-over-year basis. Similarly, a high inflation rate would mean that people are able to buy less for an equivalent dollar, which is bad for a business enterprise (Viorica, Jemna, Pintilescu, & Asandului, 2014). A lower inflation rate, on the other hand, would be a welcome outcome ...
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...d don’ts of their new venture location while their new entrants will ride on these studies to strategically position their products. Secondly, first movers are more likely to build infrastructure that others entrants will ride upon. For instance, the Australian Char is likely to train employees in their new investment destination on how to prepare their specific types of barbeques. However, new market entrants may take advantage of these experienced employees and woo them into their fold, thereby eliminating unnecessary recruitment and training cost. Thirdly, a first mover may experience challenges in breaking even in the new country (Hill, Cronk, & Wickramasekera, 2014). For instance, the government may have to introduce regulatory laws in relation to Australian Char’s barbeque, which may be a hindrance to fast progress as the company adjusts to the new regulations.
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