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Explore the risk assessment for operating in Africa, focusing on potential operating countries such as South Africa, Seychelles, Egypt, Ghana, Kenya, and Swaziland. Understand the political and economic systems, highlighting risks and benefits of each country. Compare the Corruption Perceptions Index for these nations and learn the advantages of setting up business in South Africa through international joint ventures.
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Derek, Manraj, Sukhdeep, Zachary Risk Assessment - Africa
Possible Operating Countries • South Africa • Seychelles • Egypt • Ghana • Kenya • Swaziland
Swaziland • Highest risk potential • Political System: Monarchy • Pros : Establish a relationship with the reigning king • Cons: If the government was to change, all ties are lost • The Economic System: in between a modified capitalism and a command economy • Changing value of the dollar • Possible seizure of the investment
South Africa • Lowest potential risk • Political System: Republic • Citizens have a large input on changes in the country • Fewer law changes • Elections every four years • Economic System: Modified capitalism • Government interferes less
The Corruption Perceptions Index • Results for 2010 (from least to most corrupt) • Seychelles • South Africa • Ghana • Swaziland • Egypt • Kenya
Setting up in South Africa • Why? • It is the most politically and economically stable • How? • International joint venture • Strategic alliance is the best action to take to set up an effective import/export business