Critical Examination of Peru´s Business Environment Using PIE Model

PIE model: In order to critically test the pros and cons of the business environment in Peru, we will use the PIE framework as a baseline analysis in this white paper. The PIE model represents politics, institution, and economics. Unlike other models (such as PEST and PESTLE), these are static and ignore the importance of the organization The PIE framework captures the dynamics of the three environments and the interdependence between them I will. The PIE framework can be used as an excellent indicator of the overall business environment in a particular society.

The business ranking model measures the quality or appeal of the business environment of 82 countries covered by the National Forecast Report of the Economist Intelligence Unit. It consists of 10 separate criteria or categories covering the political environment, macroeconomic environment, market opportunities, free enterprises and competition policy, foreign investment policy, foreign trade and foreign exchange management, taxation, funding, labor market and infrastructure Review.

There are good reasons to believe that Hofstede's model is outdated and may not be suitable for modern international business environments. The first reason, according to Papaconstantinou, G, is the expansion of geographical interrelationships among globalization, products, markets, business and production factors. (1995), most of which originate from more countries and regions, are generated or available. The UNCTAD statistics, the number of overseas investment enterprises, and the number of multinational companies (multinational corporations) that have been active for decades globally are increasing for more immigrants and foreign labor May reflect the person. In addition, each business organization has its own culture, workers need to adapt to the culture of the organization, such as promoting team work, participating in decision-making, maintaining relationships.

In contrast, Hofstede's model can be used in certain parts of the business environment. For example, we provide some form of basic understanding to business executives. When an international business executive enters foreign culture, everything seems to be different from the family environment. Using Hofstede's cultural aspect as a reference point, he / she can evaluate the way to take, the decision to be made, and the actions performed in a general sense for that cultural environment . There is no homogeneous culture and the real business environment will deviate from the cultural discovery of Hofstede, but with Hofstede's model, business executives can predict the situation in foreign environments. . By studying the cultural model you get the confidence and safety you need, so it will not be that difficult.