Country Risk and Strategic Planning

             Taxation and Double Taxation Risks.
             Due to the long and stable relationship between the US and Canada, there is not much risk for double taxation. In 1980 at the Canada – US Tax Convention, the two countries established a treaty that contains Article XXIV which deals with foreign tax credits to help avoid both countries taxing the same income (Serbinski.com, 2015). The treaty helps to avoid double taxation under the general acceptance that taxpayers will be taxed in the country of their permanent residence. We would need to ensure we operate within the confines of the treaty to make sure we fall under the contained article and are not double taxed.
             Market Risks.
             Product.
             We want our product to stand out. Every product we manufacture will have a gold emblem with the company logo on it so it ca [can] be clearly seen and displayed on the product. When our consumers wear their shoes, we want them to show this logo off like they're proud to wear our shoes.
             Price .
             The boots we sale [sell] are not going to be the most inexpensive boots on the market, but they will definitely last longer than your average quality boots. Of course, during off seasons, we will offer discounts and sales. We plan to have quarterly sales that will clear out inventory and allow us to stock up with new attractive products.
             Place.
             Our FDI is into a Canadian boot producer. The location of the manufacturer and business is a great spot since Canadians are experts at what it takes to make a good quality boot. Since we are primarily marketing and selling our boots in the US, exporting them won't be too costly; it's a reasonable distance to export. Our products will be delivered by trucks and if sold online across seas they will be sent by plane or shipped over on a barge by UPS.
             Promotion.
             The promotional strategies we plan on using are: TV commercials, online ads, and email clubs. Since our product is so different when it comes to being able to stand heat or ice and still look brand new, we plan to make our commercials with the boots walking through lava.