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Gepetto - the Shoe Factory in Peru - Assignment Example

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In the paper “Gepetto - the Shoe Factory in Peru” the author tries to understand the role of government in the development of the Peruvian market. It would be preferable to refer primarily to the changes that took place in the political system of Peru for the last 7 years. …
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Download file to see previous pages On the other hand, Toledo ‘maintained strong commitments to freedom of the press’ (U.S. Department of State, 2007). In the elections that took place in 2006, the country’s government changed. It was now the time of the Garcia government. Under the ruling of the specific government, all public sectors have been restructured. In accordance with a report published by the U.S. Department of State, ‘Peru's economy is well managed, and better tax collection and growth are increasing revenues, with expenditures keeping pace; private investment is rising and becoming more broad-based’ (U.S. Department of State, 2007). Moreover, innovative initiatives are promoted by the government in order for small businesses to be supported by their competitors.
The role of the government in the business activities of Peru is extensive. However, the conditions of making business in Peru are not friendly for foreigners. Regarding this issue research published by the International Workshop on Private-Public Dialogue (2006) states that ‘like many countries in Latin America, Peru is burdened with complicated and costly business regulations; it takes over 100 days to register a new business in Peru and over 200 to get a construction permit’ (International Workshop on Private-Public Dialogue, 2006). Under these terms, operating in Peru is a challenging initiative for any firm (even for multinational ones). One of the most significant problems for foreign enterprises in Peru is tax. However, the efforts made by the current government towards the reduction of public expenses and infrastructure are very important for the development of competition within the country, especially by foreign firms. On the other hand, it is supported that ‘for business to flourish a country must enjoy conditions of continuity, stability, and even-handed policy in which business trust and habits of competition can grow; historical forces in Perú have done little to create these conditions’. ...Download file to see next pagesRead More
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Gepetto - the Shoe Factory in Peru Assignment Example | Topics and Well Written Essays - 2250 Words.
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