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M4A2 Final Project Milestone Two: SWOT Analysis

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Abstract

Markets for foreign exchanges assist in determining the value of overseas savings. However, it becomes a forum on key foreign money being purchased hence showing that it was an intentional process to buy and sell foreign currency. This article aims to examine the private business Sustainability of foreign exchange in the United States. It was the responsibility of the Director of Operations to choose an advanced and emerging nation to grow the business as a trial project. The U.S as a developed nation and Mexico as the new entrant is the selected countries for this project. After thoroughly examining their political, financial, and cultural circles, Canada and Mexico have provisionally chosen as advanced and emerging nations for the pilot. A considerable study is necessary to invest in a foreign country. Against the background of Mexico's trade regime export-oriented policy changes in the mid-80s, the current research conducts a case study of the Mexican economic development. Evidence provides short-term support for the hypothesis; however, unlike the belief, long-term findings show a negative connection between exports and GD. This specific study aims to highlight the top three trade agreements with both nations and evaluate their possible effect on the final choice of these countries to do business.

Introduction

The key currency on foreign exchange plays a crucial role in determining how effective value foreign investment are essential to the economy. Foreign exchange markets are concerned primarily with the purchase and sale of exchange rates. Under such demand, one country's currency is swapped with another country's currency. Extensive study is necessary to invest in a foreign nation (Taskinsoy, 2019). As CEO in the World Sustainability Goods Department, the Business Manager has now requested me to evaluate what two countries the company will grow into first place. Internally and externally, variables have a significant impact on the success of the company. Indeed, foreign exchange is conducted on the market to manage risk (hedging), arbitration, and speculative gains. This kind of market offers relative peace for foreign liquidity. It's essential to analyze the economic environment in each country before investing the funds to develop business within different countries (Dogru, Isik, & Sirakaya-Turk, 2019). There are several ways to explore this. I want to execute our program in Mexico and Canada goods and services. However, before utilizing the SWOT Analysis, we have to monitor internal and external variables on the price of foreign currency of money supply as shown in the diagram below.

Fixed exchange rate system - Wikipedia

 The U.S is part of the UN system, which includes a large number of funds, programs, and specialized organizations, each with its field of activity, management, and funding in addition to the United U.S itself. The "worth" of one of the currencies in that pair is related to the other money currency. Voluntary donations rather than evaluated contributions fund the programs and funding. Visual content is a self-reliant, volunteer, and evaluated aid agency.

Strengths

Markets for foreign exchanges assist in determining the value of overseas savings. Mexico and Canada have a solid geopolitical posture as a US ally — their western border is Russia. Following the change in the U.S, it is regarded as a most strong nation. Canada's economy is growing due to EU funding, but the recession did not occur in 2009. (Sluszniak, Kubacki, 2016). Foreign currency markets consist of banks, forex traders, businesses, central banks, investment managers, fund managers, retail forex traders, and investors. Education in Canada is recognized as high quality and free access to every grade of qualification. A flexible currency rate supports the vital export factor.

The U.S is recognized as the 's biggest travel destination. It is one of the safest places to visit on earth for tourists, and this is why tourists spend a lot of money on visiting the U.S. For France, tourism is thus a strength. The Mexican economy is another advantage. "The Mexico economy is one of the world's most incredible. Therefore, they are leaders in manufacturing, business, and many more sectors. US.  has a highly skilled and productive, in addition to economics. France spends a great deal on its education system, which attracts students from other countries(Dogru, Isik, & Sirakaya-Turk, 2019).

Weaknesses

 Manufacturing output is a strength but also a vulnerability. As with other economies, the financial downturn in 2007 hit America, and it wasn't simple for Mexico to recover quickly from this reversal. America's lack of worldwide competitiveness did little to improve the issue. High taxes are one of the weaknesses of the United States. U.S. taxes on wages are 43 percent more than any other nation in the world. This means that importers purchase the foreign currency that the exporters sell. However, the market only demonstrates an essential part of the money market within economic centers, whereby nation foreign currency is bought and traded. Small companies are particularly affected by the weight of higher taxes, and while remedies established to support the burden, these solutions all come with their difficulties. Finally, the United States faces a significant amount of government debt. In early 2017, Mexico's national debt increased to $2.52 trillion, reaching 98.9 percent of gross domestic product (Horobin, 2017). The funding of pensions via the yearly budget and not via an equity fund is a feature that adds to this debt (Cooper, 2018).

Opportunities

Mexico is considered Canada's "third-biggest trade country" (Global Tenders, n.d). Mexico's commerce contributes to about 59 % of the U.S trade. Mexico exports a lot within the United States. The exportation of airplanes, engines, power supplies, luxurious goods, and many more makes it the ninth biggest trade partner with the United States. U.S is in a position to enjoy real possibilities coming with being a member as part of the U.S. The chance to continue trading with other associates is a great bargain. Threats risks are no longer an alien idea for anybody, in particular France. In 2015, U.S was the target of a terrorist assault that killed 130 people and wounded more. It allowed the U.S to generate more employment and boost revenue (Economic, 2016).

Threats

A mob drove a vehicle in Nice in 2016, and a French Soldier was assaulted. Terrorist attacks may reduce tourist money when individuals try refusing to travel to the U.S because they are afraid for their lives. The retail behemoth Amazon is understood as a danger to Canada's means of life and gives small companies high competition in Mexico (Dogru, Isik, & Sirakaya-Turk, 2019). Amazon can drive a lot of the little companies out of business in France. Their simple, convenient, and cheap goods may harm the local economy.

Canada Case Analysis

. There is a broad range of dealers in foreign currency markets, such as banks. Banks dealing within nation foreign currency exchange having essential branches in most nations. Hence becoming highly referred to as "exchange banks," which provide services worldwide. U. S is considered Canada's "third-biggest trade country" (Global Tenders, n.d). Mexico's commerce contributes to about 59 for American trade. Mexico exportation a lot of the United States. They export airplanes, engines, power supplies, luxurious goods, and many more things, making them the ninth biggest trade partner with the United States (Global Tenders, n.d). U.S is in a position to enjoy all the possibilities coming with being a member as part of the U.S. The chance to continue trading with other EU members is a great bargain. It allowed the U.S to generate more employment and boost revenue (Dogru, Isik, & Sirakaya-Turk, 2019). Amazon can cause a lot of the little companies out of business in France. Their simple, convenient, and cheap goods may harm the local economy.

CANADA’S SWOT ANALYSIS

Canada’s Strengths (Interior Strategic Features)

The success of Canada.com Inc. in e-commerce is based on the efficient utilization of company capabilities. This component lists the company's internal reasons for maintaining and enhancing its operation in the online sales, technological goods and online services sectors under the SWOT Analysis framework. The following strengths underpin Canada's success and ongoing growth:

  1. Strong Canada identity
  2. Canada Modest and increasing diversity of business
  3. High technical innovation capacity, particularly for internet services

Canada’s Weaknesses (Interior Strategic Issues)

The vulnerabilities of Canada are obstacles that restrict its development and growth. This component of the Case Study model describes the internal tactical issues that make company growth or improvement difficult. The following shortcomings are significant in this situation in Canada:

  1. Imitable business plan in Canada
  2. Restricted market share
  3. The limited presence of brick and mortar

Opportunities for Canada.com Inc. (Exterior Strategic Features)

There are many ways to enhance the company's performance of the network in Canada. In the Case Study paradigm, this component highlights external variables, such as development in the worldwide e-commerce markets, which the firm may utilize to strengthen its business. Canada has the following possibilities in this case:

  1. Development global expansion
  2. Canada Growth of business activities
  3. New collaborations with other companies, particularly in emerging markets

Threats Facing Canada (Exterior Strategic Features)

Canada faces many challenges to its activities in numerous sectors and markets. This component of the SWOT Analysis model considers various factors that decrease or restrict company growth and performance, for example, in e-commerce transactions. Canada.com Inc. must address the following risks in its industrial setting:

  1. Canada Increased competition with online and non-online companies
  2. Cybercrime
  3. Business model and products imitation

Mexico Case Analysis

Against the background of Mexico's trade regime-oriented export policy changes in the mid-80s, the current research conducts a case study of Mexican economic development. This objective has applied tax reduction and trade restrictions with stringent criteria, e.g., the level of local content and net export performance. Sustainable goods might affect three agreements if we did business in the nation. In the period 1960-2003, the viability for Export-led Growth for Mexico is also evaluated via an export-enhanced neoclassical factor of production. Evidence provides short-term support for the Hypothesis, but the long-term findings indicate a reverse connection among exports and GDP, contrary to the Proposition. The importation percentage, the decreasing local exportation content, and poor links with national providers will probably limit potential spillover or multiplier effects (Al-Yahyaee, Shahzad, & Mensi, 2020).).

MEXICO’S SWOT ANALYSIS

Mexico s Strengths (Interior Forces)

The strengths of Mexico are all linked to the size of its company in this section of the SWOT analysis. Despite its limitations as a low-cost retailer, the competitive qualities allow the business to stand up to threats. For taking advantage of global expansion possibilities, Mexico's strengths are:

  1. Overall strategy size of Mexico
  2. The worldwide supply chain
  3. . Higher supply chain effectiveness

Mexico’s Weaknesses (Interior Forces)

The weaknesses of Mexico put difficulties on the company's capacity to address the threats also highlighted in this Case study. These shortcomings are connected to the general approach of the firm and its consequences for business growth, capacity, resource, and profit margins. Mexico employs the generic process for cost management, leading to the main weaknesses:

  1. Mexico Thin margins of profit
  2. Copied business model quickly.
  3. Competitive deficit versus specialized high-end vendors

Opportunities for Mexico (Exterior Forces)

Mexico has chances to expand and improve business processes. The global economic condition is related to these possibilities. The human resources position in the business also reveals problems that the company really can address. In this section of the Case study, Mexico offers:

  1. Advancement in Mexico's developed nations
  2. Mexico Improved human resources strategies to enhance labor competitiveness
  3. Increased quality standards in Mexico

Threats Facing Mexico (Exterior Forces)

The risks to business in Mexico are related to the state of the retail sector and the shift in customer views of the goods they purchase. These considerations should force the company to undertake some strategic competitive adjustments. In this SWOT analysis, Mexico is threatened by:

  1. Healthy living movement in Mexico
  2. Mexico Contest Aggressive
  3. Different size online shops

Conclusion

I have chosen three partnerships that best illustrate our desire to grow worldwide for each nation's foreign currency. The states offer the business a more profound impact on the Marketplace for both countries. Similarly, both countries have Canadian trade deals covering the US market foreign exchange currency. Furthermore, assurances into the US market are crucial for a business to contemplate following the United States. Thus, by growing into Canada and Mexico, we may enter the vast U.S. market sometime in the future. The foreign currency market – often known as the forex- was one of the first financial markets built to organize the emerging global economy. As far as trade volume is concerned, it is by far the world's biggest financial market. The validity of Mexico's export-led Growth is also evaluated over 1960-2003 using an exported neoclassical functional form.

References

Al-Yahyaee, K. H., Shahzad, S. J. H., & Mensi, W. (2020). Tail dependence structures between economic policy uncertainty and foreign exchange markets: Nonparametric quantiles methods. International Economics161, 66-82.

Dogru, T., Isik, C., & Sirakaya-Turk, E. (2019). The balance of trade and exchange rates: Theory and contemporary evidence from tourism. Tourism Management74, 12-23.

Taskinsoy, J. (2019). The Transition from Barter Trade to Impediments of the Dollar System: One Nation, One Currency, One Monopoly. One Currency, One Monopoly (March 6, 2019).

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