Introducing the Gasolina Urban Blends (alcoholic drink) into panama – Research Paper Example

INTRODUCING THE “GASOLINA URBAN BLENDS” INTO PANAMA The Republic of Panama is the located in Central America and it connects North and South America. Its revenue from canal tolls represents a significant portion of Panama’s Gross domestic Product. The republic is also top of the list of the fastest growing economies in Central America (Broker 34). It is quite an attractive country and is home to tropical animals that are quite scarce in the world. The political climate is relatively calm and this has continued economic growth. This makes Panama a good investment area especially for new products. The Pan American Grain Corporation was founded in 1984 and is located in Guaynabo, PR. It was established under the Rice Milling Industries and entails carrying out activities such as milling of, cleaning, and polishing of rice. The company therefore falls into the Food Manufacturing sector. Pan American Grain Corporation mainly sells its products to wholesalers who then repackage them and sell it to smaller retailers. The Republic of Panama has an open economy is one which allows the exchange of products between the domestic market and external market from other countries. A country with an open market is allowed to trade in the world market with other countries hence generating foreign income. This form of trade also enables a country to acquire goods it cannot produce itself and also to economically dispose of any excess internally produced country. Establishing the Gasolina Urban Blends in a country with an open economy means that it will be easy to sell it within and outside the boundaries. In the long, this results to higher sales and profits to the company. Import taxes are imposed on goods that are sold into a country from other countries. They raise the price of the product and make the local buyers not want to buy imported goods. Import taxes are meant to promote local industries by encouraging the consumption of locally available goods as they appear cheaper (Luc De 72). Introduction of Gasolina Urban Blends in Panama should be done only if there are no import taxes being imposed on the product. A consideration can be given if the taxes imposed are relatively low compared to other competing countries in the region. A country with good political climate is highly favored when it comes to choosing the market of a product. This is because politics is a major economic influencer. The interest rates in a country are determined by the Central bank of a country. During the introduction of a new product, a company is likely to take up loans to finance its initial operations (Woods 62). A country with low interest rates will be more favored so that the company does not have to incur high interest expenses on loan repayment. Gasolina Urban Blends is made from fruits cocktails and spirits. This gives it a better taste compared to other drinks such as beer. It would also be more recommendable to take Gasolina drinks because their alcohol levels are relatively lower than that of its competitors. Its price is relatively higher compared to other alcoholic drinks. It is quite hard to get Gasolina Urban Blends drinks in many parts of the world due to their high prices. The production process of the drink also takes longer because the used products are not easily available and they have to undergo long processes before they can be availed for public consumption. The use of internet in Panama is increasing day by day making it a very good region to establish e-commerce business. It is also a very fast growing economy in Central America hence a good business opportunity as ready market is guaranteed. The Republic ensures that their global tax news is updated on a daily basis hence keeping investors updated on the corporation taxes that they will pay (Lars 69). The government has also established the Ministry of Commerce and Industries which handles any commercial related issues. This ensures that the country’s businesses run smoothly and helps shield against losses. There are various modes of transportation that can take one to Panama such as airplanes and boats. The choice all depends on an individual, especially one considering the costs involved. From a business view, any company intending to introduce its product in Panama should ensure that efficient and effective market research has been done on the viability of its product. It is also necessary to have sufficient capital to fund its initial operations.It is however important to note that introduction of Gasolina Urban Blends in Panama is actually a viable business idea for a risk taking company. At the end of the day, the benefits of doing so outweigh the disadvantages. WORKS CITED Broker S Harwood, Shipping Finance Euro money Books, 2006. Print. Lars Myers, E. , North Carolina Craft beer & Breweries, John F. Blair, Publisher, 2012. Print. Luc De Wulf & Jose B. Sokol, Customs Modernization Handbook, World Bank Publications, 2005. Print. Woods S, Panama: Bradt Travel Guides, Bradt Travel Guides, 2009. Print.