INT 220 Module Three Assignment
Economic and Political Environments Comparison
Section One
The purpose of this report is to show your business what information is important to know
when trying to expand globally. With this company trying to expand their sales of digital cameras to
another country, the table below could help decide what country would be the best in terms of
expansion. The insight of this data will show the total monetary or market value of all the finished goods
and services produced within a country’s borders in a specific period (Fernando, 2024).
Section Two
Category Mexico Germany Japan
Political System Presidential System
and Federal Republic
Democracy and
Federal
Parliamentary
Republic
Democracy; Unitary
State; Parliamentary
System; Constitutional
Monarchy
Economic
Classification
Upper middle-income
country with a
developing mixed-
market economy
A mixed economic
system, specifically a
social market
economy
Mixed economy that
includes three systems:
1) Planned system: The
government sector
2) Market system: The
economic sector
3) Social system: The
informal sector
Economic Blocs
Impacting Trade
United States–Mexico–
Canada Agreement
(USMCA); Pacific
Alliance; European
Union (EU); World
Trade Organization
(WTO); Asia-Pacific
Economic Cooperation
(APEC); Organization
for Economic Co-
operation and
Development (OECD);
and Latin American
Integration Association
(ALADI)
European Union (EU)
and the World Trade
Organization (WTO):
Free trade agreements
(FTAs), economic
partnership agreements
(EPAs), and the World
Trade Organization
(WTO)
Gross Domestic
Product
$2.017 trillion USD $4.591 trillion USD $4.1 trillion USD
Purchasing Power
Parity
9.9 LCU 0.7 LCU 100.4 LCU
Gross Domestic
Product Per Capita
$15,249 USD Between $42,965 and
$54,078 USD,
depending on the
source
$33,140 USD
Political System: According to an article by Michael Boyles, this is a country’s political state. The
political leaders can impact taxes, labor laws, and transportation (Boyles, 2022).
Economic Classification: This shows what class each country is in for income.
Economic Blocs Impacting Trade: This shows what trade blocs each country is in. By being in
these blocs is limits trade barriers such as subsidies, quotas, and tariffs.
Gross Domestic Product: GDP is the total monetary or market value of all the finished goods and
services produced within a country’s borders in a specific period (Fernando, 2024).
Purchasing Power Parity: Purchasing power parity is an economic theory that refers to the
exchange rate between countries. It should show comparisons that the deal will be beneficial to
both countries.
Gross Domestic Product Per Capita: This measures the country’s economic output per person. It
is calculated by dividing the GPD by the population of the country
Section Three
Based on the table above I have ranked the countries from most appropriate to the least appropriate for
expansion of the digital camera. The ranking is Japan, Germany, then Mexico. Germany has a higher GPD
and GPD per capita, but Japan does have a higher population. The digital camera could sell more in
Japan due to a higher population. Mexico would be the least appropriate country to expand globally.
Their GPD is the lowest by about 2 trillion US dollars. Mexico is in a lower income class which may not
warrant people to spend money on extras. The only benefit to expand to Mexico would be shipping
costs and tariffs.
References
Boyles, M. (2022, July 19). Understanding How Politics Can Affect Your Business. Business Insights Blog.
https://online.hbs.edu/blog/post/politics-and-business
Fernando, J. (2024, September 10). Gross Domestic Product (GDP) Formula and How to Use It.
Investopedia. https://www.investopedia.com/terms/g/gdp.asp
