Philippine Canning Corporation Case Essay

I. Issues that Azucena Inalis must take into consideration.There seems to be deuce major issues that PCC must tackle in its corned beef stake 1) where should PCC get its raw materials? (beef) and 2) Where does PCC source its debt? When it comes to the outsourcing of beef, PCC is considering Argentina, Australia, and/ or India. There are a number of concerns that must be addressed when it comes to importing raw materials from whatever i of these countries1) Political and Legal Considerations2) Economic Performance and centering3) governing body Protectionist PoliciesThe matter of sourcing debt is relatively simple because there are only dickens options being deliberated 1) Denomination in Philippine Pesos, or 2) denomination in US Dollars.II. Evaluating the Issues1) Political and Legal ConsiderationsArgentina is widely considered to be one of the most corrupt countries in the world. Argentina scored 35/100 on the enhancer International rating as of 2011. 0/100 would be highly c orrupt while 100/100 would be clean. villainy rates as well as poverty are know issues. There is high risk as outlying(prenominal) as the semipolitical considerations in Argentina are concerned. India scored 36/100 on the Transparency International rating as of 2011. 0/100 would be extremely corrupt while 100/100 would be clean. Australia is would be considered in a low risk bracket, there is a strong lawful system in operation and there is high confidence in government Australia scored 85/100 and they are well recognized for their efforts to lug and eventually eradicate corruption and poverty altogether.2) Economic Performance and ManagementTaken from Teadingeconomics.com(2013) Instituto Nacional de Stadista The latest reported ostentatiousness rate for Argentina is 10.5% for this month. It has been steady decreasing from a high of 11.1% in too soon February(Instituto Nacional de Estadista, 2013) but it has been forecasted to affix to 10.8% by mid-October.Taken from Tradin geconomics.com(2013) Ministry of Comerce and Industry Indias latest reported fanfare rate is 4.86%. It has also been decreasing but in a more than rapid rate compared to Argentina. From 10% in late 2011 to a fast drop to7-8% in early 2012, and a gradual decrease to 6.68-7.5% in late 2012 and early 2013.Taken from Tradingeconomics.com Australian Burau of Statistics Inflation in Australia From 2010-2012, Australias pretension has been in the 2.1% (low) to 3.6% (high) region. Inflation went as low as 1.2% in the mid-2012, and bit by bit increased back to 2.5% through late 2012 and the first quarter of 2013. In the second quarter of 2013 however, inflation is back down to 2.4%. As far as inflation is concerned, the Australian economy is outperforming both Argentina and India by the proverbial mile.Lets take a look at economic management.Indian Central Bank Base Interest judge (Historical)Retrieved from Global-rates.com (2013)The latest base interest rate is 7.25%. It has fluctu ated in recent long time from 5% in 2010 to 8.5% in early 2012- probably to control inflation it was during this period that Indias inflation rate suddenly dropped frombeen on the turn away from a high 8.5% in early 2012. This may be an comment as to why Indias inflation dropped from 10% to 7+%.Retrieved from Tradingeconomics.com (2013)11.38 is the current base interest rate for Argentina. It has been moving in the 9-12% range since early 20123) Government Protectionist PoliciesREFERENCESTransparency International (2013) The Global Coalition Against putridness Corruption by Country/ Territory. Retrieved from http//www.transparency.org/countryARG_DataResearchTrading Economics (2013) Inflation Rates. Retrieved from http//www.tradingeconomics.com/genus Argentina/inflation-cpi