South Africa - County Analysis

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SOUTH AFRICA COUNTRY ANALYSIS by Bryer Clancy 100878887 A paper submitted to Christopher Atkins in partial fulfillment of the requirements of BUSI 2701 School of Business Carleton University Ottawa, Ontario, Canada 9 February, 2015 EXECUTIVE SUMMARY South Africa's is a developed emerging economy, with decent infrastructure and plans to develop it for the future. Foreign direct investment is a dominating factor present in the economy, but lack of change in the labour force and violence cause political instability. Inequality and high poverty rates affect the cultural aspects for the economy. The labour force for the country is very poor in terms of their unemployment rate and availability of skilled labour, plentiful in diversity. South Africa is also plentiful in terms of their natural resources, but in terms of capital, lack of domestic savings and poor policies, slow growth in private-sector investment. Overall, even though South Africa is one of the emerging economies it lacks in a lot of areas and business implementation in the country is not recommended. MACRO ENVIRONMENT Country Description South Africa has in place, a national growth and development strategy to increase the investment in infrastructure (National Treasury Republic of South Africa, 2012). South Africa belongs to a number of international organizations, including the UN, IMF, World Bank, G-20, and the WTO (Bureau of African Affairs, 2014); South Africa is also a member of BRICS. Since the global financial crisis (figure 1), investment flows have more than doubled (United Nations, 2013) and they rank 13th on the FDICI (figure 2) (Santander Trade, 2015). The main invested industries from inward FDI in 2012 were the financial sectors, followed by mining, and then manufacturing (figure 3). Globally, South Africa also ranks 15th among the most attractive economies for transnational companies
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