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The presented paper covers an in depth analysis of the business environment in Cambodia. Analysis of the business environment of a particular country is a pre-requisite for any firm that is looking forward to expand on international or global fronts. The paper uses two forms of analysis for the Cambodian business environment namely PESTEL Analysis for the external business environment in to country and Porter’s Diamond Theory to access the viability aspect of the country’s business environment.
Low labor cost and government regulations like 100% FDI makes Cambodia a tempting choice for Firms to expand in the country. However, factors like lack of infrastructure, technological backwardness and unskilled labor makes the country an un-wise choice for expansion. Hence, the firms must first weigh their pros and cons before making a decision
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