2. Benefits of Peru
- Fastest growing economy in latin america for 10 years
- Economy is growing by 6.4 percent each year
- Private and public investments are welcomed by the
president
- The country has signed many free trade agreements to get
into the global economy.
3. Benefits
- Rich in natural resources
- Low inflation rate over the last four years
- Peru has gone without a year of negative
economic growth
- Strong political system
4. Peruvian Government
Government is putting the proper money into defence to protect the businesses.
â—Ź air defence systems
â—Ź an earth observation satellite
â—Ź upgrading and renewing air and ground equipment
â—Ź training
â—Ź patrol vessels
Making it the second safest country in Latin America to do business in.
5. Costs
â—Ź Peru is not a very big country
with a population of 30 million
in comparison to Brazil which
has a population of over 200
million people.
â—Ź Social conflicts over natural
resources remained and nearly
a third of all Peruvians still live
in poverty
6. Costs
â—Ź Peru relies too much on
commodities like oil, copper,
or coffee.
● In recent years Peru’s FDI
flows have fallen steadily.
â—Ź In 2012 they went from a
peak of 12,240 to 9,298 in
2013 in their FDI inward
flows.
8. Mining
Peru is one of the global leader in mining
Largest producers of copper and zinc
Vast unexplored areas for development opportunities
Peru’s government encourages foreign investors to mine in Peru
â—‹ No restrictions on repatriation of earnings
â—‹ Guarantee legal stability on income tax
9. Communications
- Growing at a consistent rate
â—‹ In 2012, Peru ranked:
â– Telephone Main Line- 45th in the world
â– Cellular Phones- 36th in the world
- Peru struggles with 3G network coverage
â—‹ Creates a strong investment opportunity
10. Oil
1.) One of the lowest industry in the country
â—‹ Steady decline in oil production
â—‹ Increase in oil consumption
2.) Help oil production and make profit from high consumption
3.) Get oil imported from other countries
â—‹ Start up an import
11. Pro’s and Con’s from Corporations
1.) Occidental Petroleum
Settled out of court in 2015 in case addressing environmental destruction
2.) Chevron
Ordered to pay$18 billion dollars in 2011, later deemed due to corruption
3.) Claro
Holds power in market due to advanced technology, competitors Movistar and
extel cannot keep up
12. Entry Strategy
Since there was so much corruption in the industries in Peru we decided to have
Greenfield investments in three industries; oil, communications, and mining. Our
team decided to partner with ExxonMobil, Verizon, and Freeport-Mcmoran Inc to
create three small businesses in Peru to get a competitive edge on the
competition, provide quality service and products to the Peruvian population, and
so that if one industry is financially going under we could bail it out with the other
companies.
13. We chose ExxonMobil because of
their excellence in the oil industry, its
continuous strive for new
technological advances, and their
commitment to environmental and
human safety.
14.
15. - The Pierina mine in the
Andean Cordillera in the
Department of Ancash in
north-central Peru
- It produced 97,000 ounces of
gold in 2013 at all-in
sustaining costs of $1,349 per
ounce
16. After looking at all the benefits and
cost of investing in the national
resources of Peru we (the Rama-
Fam Investment Group LLC) are
very excited. At Rama-Fam
Investment Group LLC we plan to
make 1 billion dollars by the end of
the First Quarter of 2017.