Determine the major elements and dimensions of the business culture in the selected country.
The United States is the largest exporter with an estimated 25.2% under its belt. The major exports in Guyana consist of gold 51.1%, sugar 8.1%, bauxite 11.5%, rice 13.5%, shrimp 4.0%, and timber 3.0%. With gold being the number one export in Guyana, the Omai Gold Mine is the largest open-pit gold mine in South America. There is ply-wood production for export by the Korean-Malaysian company, Barama.
Guyana’s location is a prime area for imports and exports. Being that Guyana is part of the Caribbean, making transportation of goods is simple and almost seems effortless compared to many other ...view middle of the document...
Implementation of an electronic declaration system reduced customs clearance times for exports and imports. While in 2011, Guyana improved its risk profiling system for custom inspections, reducing physical inspections of shipments, and the time to trade.
In Guyana, to enforce a contract, it requires thirty-six procedures, takes five hundred and eighty-one days and costs 25.2% of the value of the claim.
1. Determine how these elements and dimensions are integrated by local residents conducting business in the country.
Guyana’s capital improvement program to develop its long-neglected physical infrastructure provides opportunities for suppliers of related products and services. In addition, Guyana's high affinity for United States products represents a nascent market for United States consumer goods. Franchising is on the rise in Guyana and should be regarded as a promising growth area for United States brands, which generally enjoy strong recognition and appreciation among Guyanese consumers.
2. Compare both the major elements and dimensions with U.S. culture and business.
Research shows that exporters in developing countries gain more from a ten percent drop in their trading costs than from a similar reduction in the tariffs applied to their products in global markets.
Products such as apparel knit with United States-made material, sugar, seafood, fruit, and other agricultural products enjoy duty-free access to the United States market under the Caribbean Basin Trade Partnership Act, which has been extended to 2020.
3. Determine the challenges for U.S. businesses that wish to conduct business in that country.
According to the U.S. Embassy, it views Guyana as a potentially profitable site for American investors, mainly in the areas of primary materials, agriculture, and some consumer products. The main caution is that the Guyana infrastructure is still developing, so potential investors should proceed with patience.
The main issue is the lack of trained professionals in the country. There are approximately thirty-five hundred people that are trained in technical and vocational areas annually in Guyana. The educational system does not provide enough skilled people, especially in technical and vocational subjects, business management and computer science. This has a direct effect on production costs and, thus, on competitiveness.
Not only is the lack of a skilled workforce a large barrier, but the poor infrastructure and huge external debt are other factors to consider. Because the country is classified as a Highly Indebted Poor Country (HIPC) after writing off most of its debt, the government depends heavily on foreign aid. There are many reasons for this ranging from a high cost of living, turbulent politics due to an ethno-cultural division, and the country is highly susceptible to adverse weather conditions and fluctuations in commodity prices.
Also, one has to look at the health factors for laborers. Due to most of the country...