Smoke detectors Essay Example | Topics and Well Written Essays - 500 words

Smoke detectors - Essay Example This aspect compels companies that contravene these laws and other government policies on emissions to pay more in terms of hefty fines and this weakens the financial positions of most companies resulting to closure or struggling of subsidiaries in emerging markets. On equal measure, corruption has seen the recent claims on the dangers of ionization detectors kept from the public. Conspiracy between the government authorities and the some manufacturing companies forms a significant portion of a political risk on the smoke detector industry, because if the agitation on the issue persists, the companies stand to lose on the profits due to low sales. The Chilean government’s stability and convenient policies on smoke detector industry have encouraged foreign investors to invest. For instance, Chile’s stronger governance has enabled existence of a favourable taxation policy, which has relatively reduced the cost of foreign investors entering a country. This has increased business activities in the smoke detector industry. In essence, the Chilean government provides a favourable environment for investors in the smoke detector industry through tax incentives and protection against public misconception about the dangers of diverse produc ts. The target market for the Chilean smoke detectors in the US market is the students and homes. An estimated 20% of homes in the US are installed with the smoke detectors and the government policy requires that all learning institution be installed with such equipment (Razin, Assaf, Vosgerau, and Bufman, 123). This indicates that most of the Chilean smoke detectors land in the schools, colleges and homes. The perspective of this target is that it forms a large market niche for the detectors from the Chilean manufactures. Similarly, another portion of the US market for the detectors from Chile is the residential pool