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Global Essay

1252 words - 6 pages

Country Risk and Strategic Planning Analysis
Nichelle Ball, Michael D. Bishop, Cather Bohannon, Kodi Mason, Crystal McCrimmon
December 11, 2012
Karen Dixon-Brugh, Ph. D.

|Country Risk and Strategic Planning Analysis |
|The Week Three learning team assignment is divided into two halves. In the first half of the assignment, Learning Team “C” will |
|conduct a country risk analysis for the selected global business venture in South Africa. The topics that will be analyzed are |
|the political, legal, and regulatory risks; the exchange and ...view middle of the document...

The political risks in |
|South Africa are enormous with the highly-publicized Apartheid and the reputation for corrupt government leaders. In the midst of|
|the instability the ones who suffer the most are the citizens. It is estimated in some areas that people who are able to find |
|employment make as little as one dollar per day, while high-ranking government officials accumulate abundant wealth that is |
|undisclosed to the public. The affects on living with such non-trust of government could complicate the implementation of foreign|
|businesses and products. The legal and regulatory risks include taxation, liability, and security of property rights, and |
|enforcement of contracts (Ahwireng-Obeng, 2002). To manage these risks, Learning Team “C” proposes to implement our product into |
|a business that is already well established in South Africa. |
|Exchange and Repatriation of Funds Risks |
|Exchange and repatriation of funds is based on principles that involve the flow of |
| |
|funds to the country of origin. Fofack & Ndikumana in 2010 wrote: |
| |
|One argument for repatriation is based on simple moral principles, especially the |
| |
|fact that a large proportion of capital held abroad by Africans was obtained through |
| |
|embezzlement of national resources and fraudulent us of borrowed funds. |
| |
|Competitive Risk Assessment |
|The competitive risk assessment for Learning Team “C’s” product in South Africa is a potentially prominent one. Despite the |
|aforementioned risks the competitive risks are more promising. Although South Africa already has a variety of carbonated products|
|locally and thru imports from countries such as Britain, the data collected revealed that the introduction of these products is |
|popular among young...

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