Market Entry Strategy-Alibaba in Peru

Topic 

Market Entry Strategy-Alibaba in Peru

Instructions 

Write an analysis paper on Market Entry Strategy-Alibaba in Peru

Answer Preview 

Economically

Peru has been one of the fastest growing economies in the region with an average of 2.9 over the past decade (World Bank, 2019).  A macro-economic environment is attributed to the impressive structural reforms and macroeconomic policies suppressed inflation and boosted GDP growth. The GDP grew at an average of 3.0 between 2014 and 2017, because of the decreased prices of the international commodity.  This resulted in reduced private investment and weak consumption. The decline notwithstanding, the GDP increased substantially from 197USD in 2016 to 216 USD in 2017. Consumption declined to 2.3 in 2017 from 2.7 in 2016. To foster economic growth, the  Central Bank lowered interbank interest rate from 4.25 percent to 4.0 percent in 2013, but has since hiked back to 4.25 percent as of 2016 (Focus Economic, 2019). However, the monetary and fiscal policies have maintained a stable economic environment.  The World Bank estimates that growth is expected to remain around 4% between 2019 and 2021. This is despite the vulnerable of the country to external shocks such as slowed growth in China and changes in commodity prices.

Word Count: 3100