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What is due:
By Sunday 8/25: Discussion
Watch the Ted Talk video in Moodle and discuss your
perception of what is wrong with people's idea of doing
international business, what issues this presents, and why
companies hesitate to move into the global market. Your
discussion should be 3 paragraphs in length.
This week’s Task post due 9/1 :
Continue your research with the Social Indicators (education
and health) discussed in class in week 3 of the two countries
you have chosen. This will allow you to further determine
whether one country is more suitable than the other in serving
as the investment destination for you company.
Social indicators:
· Health
· Life expectancy
· Under 5 or child mortality rate
· Domestic general government health expenditure (% of GDP)
· Education
· Government expenditure on education as a % of GDP
· Adult literacy rate
· Educational attainment, at least completed upper secondary,
population 25+ years, total (%) (cumulative)
Post your findings (up to one page).
This week’s Lesson (to be discussed in class next week):
Case Study
The Olympics are scheduled to be held in Brazil. You are the
owners of a business that sells t shirts and other trade marked
items at these major events. You have already invested a large
amount of money into preparation including product, set up, and
fees. However, the Zika virus is threatening to disrupt the
participation. As a class exercise, each person will analyze the
issues surrounding the Olympics, Zika virus, and the effect it
will have on the economy.
Activity 3 - Project
Create a table compares the exchange rates for the two countries
you are analyzing to that of the United States. Submit your
findings.
1. Use the following link to find the exchange rates:
· https://www.xe.com/
1- Introduction:
1 – 1.5 Pages
2. Research Problem:
1 paragraph
3. Research objectives:
1 paragraph
4. Rationale for the Research:
1 – 2 paragraphs
5. Variables in research:
1 paragraph
6. Research hypothesis:
1 paragraph
7. Terminology:
1 – 2 pages
8. Research methodology:
1 - 3 paragraphs
9. Previous studies:
1-2
10. Work plan:
11. References:
1 - 3 pages
13. Appendices:
Analyzing the Investment Potential of a Country
You are scouting new markets for your company. The company
would like to move all or part of its operations to a developing
country to save resources. It is your task to evaluate the
investment potential of two countries. You should display your
data in a set of infographics (posters), along with the pros and
cons of the possible market, and impact on the people and
culture. Infographics provide a means of showing large
amounts of data and information in a quick, easily accessible
format.
At the end of the term you will present your findings to the
class by sharing your collection of infographics, which tell the
stories of your countries and graphically displays the
information that you used to make your scouting decision.
You should have a set of 3 to 5 infographics for each country
that you considered in depth that includes the following
variables, (which are explained in more detail below):
1. Structure of the Economy
2. Economic Indicators
3. Health Indictors
4. Education
5. Governance Indicators
The list of countries classified by region and by income is
provided below and can be found at: List of Countries
Please note the following:
1. The two countries chosen cannot be from the same region
2. Each of the countries chosen must come from one of the
following income categories: Lower Income; Lower Middle
Income, and Upper Middle Income.
EAST ASIA AND PACIFIC
American Samoa
Korea, Rep.
Philippines
Australia
Lao PDR
Samoa
Brunei Darussalam
Macao SAR, China
Singapore
Cambodia
Malaysia
Solomon Islands
China
Marshall Islands
Taiwan, China
Fiji
Micronesia, Fed. Sts.
Thailand
French Polynesia
Mongolia
Timor-Leste
Guam
Myanmar
Papua New Guinea
Hong Kong SAR, China
Nauru
Tonga
Indonesia
New Caledonia
Tuvalu
Japan
New Zealand
Vanuatu
Kiribati
Northern Mariana Islands
Vietnam
Korea, Dem. People's Rep.
Palau
EUROPE AND CENTRAL ASIA
Albania
Gibraltar
Norway
Andorra
Greece
Poland
Armenia
Greenland
Portugal
Austria
Hungary
Romania
Azerbaijan
Iceland
Russian Federation
Belarus
Ireland
San Marino
Belgium
Isle of Man
Serbia
Bosnia and Herzegovina
Italy
Slovak Republic
Bulgaria
Kazakhstan
Slovenia
Channel Islands
Kosovo
Spain
Croatia
Kyrgyz Republic
Sweden
Cyprus
Latvia
Switzerland
Czech Republic
Liechtenstein
Tajikistan
Denmark
Lithuania
Turkey
Estonia
Luxembourg
Turkmenistan
Faroe Islands
Macedonia, FYR
Ukraine
Finland
Moldova
United Kingdom
France
Monaco
Uzbekistan
Georgia
Montenegro
Germany
Netherlands
LATIN AMERICA AND THE CARIBBEAN
Antigua and Barbuda
Curacao
Paraguay
Argentina
Dominica
Peru
Aruba
Dominican Republic
Puerto Rico
Bahamas, The
Ecuador
Sint Maarten (Dutch part)
Barbados
El Salvador
St. Kitts and Nevis
Belize
Grenada
St. Lucia
Bolivia
Guatemala
St. Martin (French part)
Brazil
Guyana
St. Vincent and the Grenadines
British Virgin Islands
Haiti
Suriname
Cayman Islands
Honduras
Trinidad and Tobago
Chile
Jamaica
Turks and Caicos Islands
Colombia
Mexico
Uruguay
Costa Rica
Nicaragua
Venezuela, RB
Cuba
Panama
Virgin Islands (U.S.)
MIDDLE EAST AND NORTH AFRICA
Algeria
Jordan
Qatar
Bahrain
Kuwait
Saudi Arabia
Djibouti
Lebanon
Syrian Arab Republic
Egypt, Arab Rep.
Libya
Tunisia
Iran, Islamic Rep.
Malta
United Arab Emirates
Iraq
Morocco
West Bank and Gaza
Israel
Oman
Yemen, Rep.
NORTH AMERICA
Bermuda
Canada
United States
SOUTH ASIA
Afghanistan
India
Pakistan
Bangladesh
Maldives
Sri Lanka
Bhutan
Nepal
SUB-SAHARAN AFRICA
Angola
Gabon
Nigeria
Benin
Gambia, The
Rwanda
Botswana
Ghana
São Tomé and Principe
Burkina Faso
Guinea
Senegal
Burundi
Guinea-Bissau
Seychelles
Cabo Verde
Kenya
Sierra Leone
Cameroon
Lesotho
Somalia
Central African Republic
Liberia
South Africa
Chad
Madagascar
South Sudan
Comoros
Malawi
Sudan
Congo, Dem. Rep.
Mali
Swaziland
Congo, Rep
Mauritania
Tanzania
Côte d'Ivoire
Mauritius
Togo
Equatorial Guinea
Mozambique
Uganda
Eritrea
Namibia
Zambia
Ethiopia
Niger
Zimbabwe
LOW-INCOME ECONOMIES ($1,025 OR LESS)
Afghanistan
Guinea-Bissau
Sierra Leone
Benin
Haiti
Somalia
Burkina Faso
Korea, Dem. People's Rep.
South Sudan
Burundi
Liberia
Syrian Arab Republic
Central African Republic
Madagascar
Tajikistan
Chad
Malawi
Tanzania
Congo, Dem. Rep
Mali
Togo
Eritrea
Mozambique
Uganda
Ethiopia
Nepal
Yemen, Rep.
Gambia, The
Niger
Guinea
Rwanda
LOWER-MIDDLE INCOME ECONOMIES ($1,026 TO
$3,995)
Angola
Indonesia
Philippines
Bangladesh
Kenya
São Tomé and Principe
Bhutan
Kiribati
Senegal
Bolivia
Kyrgyz Republic
Solomon Islands
Cabo Verde
Lao PDR
Sudan
Cambodia
Lesotho
Swaziland
Cameroon
Mauritania
Timor-Leste
Comoros
Micronesia, Fed. Sts.
Tunisia
Congo, Rep.
Moldova
Ukraine
Côte d'Ivoire
Mongolia
Uzbekistan
Djibouti
Morocco
Vanuatu
Egypt, Arab Rep.
Myanmar
Vietnam
El Salvador
Nicaragua
West Bank and Gaza
Ghana
Nigeria
Zambia
Honduras
Pakistan
Zimbabwe
India
Papua New Guinea
UPPER-MIDDLE-INCOME ECONOMIES ($3,996 TO $12,375)
Albania
Fiji
Montenegro
Algeria
Gabon
Namibia
American Samoa
Georgia
Nauru
Argentina
Grenada
Paraguay
Armenia
Guatemala
Peru
Azerbaijan
Guyana
Romania
Belarus
Iran, Islamic Rep.
Russian Federation
Belize
Iraq
Samoa
Bosnia and Herzegovina
Jamaica
Serbia
Botswana
Jordan
Sri Lanka
Brazil
Kazakhstan
South Africa
Bulgaria
Kosovo
St. Lucia
China
Lebanon
St. Vincent and the Grenadines
Colombia
Libya
Suriname
Costa Rica
Macedonia, FYR
Thailand
Cuba
Malaysia
Tonga
Dominica
Maldives
Turkey
Dominican Republic
Marshall Islands
Turkmenistan
Equatorial Guinea
Mauritius
Tuvalu
Ecuador
Mexico
Venezuela, RB
Please note that you cannot choose more than ONE country
from each region and you can only use countries from the list of
countries provided. When choosing the countries, also make
sure the country you are selecting has most of the data you
need. You will lose points for choosing a country with hardly
any data for the years of coverage.
Project Guidelines
The period of data analysis must cover 5 years (periods) starting
not earlier than 1990 and ending in the most current year or the
year prior to the current year. This means, for example, that you
are required to choose 5 years, well-dispersed between 1990 and
2018. Please refrain from using 5 contiguous years, as the
variables may not show significant (noticeable) fluctuations
from year to year.
A good example for selecting the period of coverage is: 1990;
1995; 2005; 2010; 2015.
*Note for each variable analyzed, if you are not able to find
data for a specific year under consideration, feel free to use data
for a year or two prior or after that specific year.
Variables
1.) Structure of the Economy (Latest Year Only):
· Use the following variables to provide a broad economic
overview of the country for the latest year for which data is
available.
Discussion Points: Briefly comment on the development status
of each country depending on the magnitude of a particular
sector in the structure of the economy. For example, an
economy dominated by manufacturing or industry is likely to be
a developed or an industrialized economy.
· Services
· Manufacturing or industry
· Agriculture
Example:
Sample Answer to Discussion Points: The graphs show that the
development status of Country A is lower than Country B
because the structure of the economy is dominated by
agriculture.
· Analyze the share of Exports as a Percentage of GDP for each
of the two countries, for the years under observation. The data
can be found at: World Development Indicators (World Bank)
Data Set .
Detailed Instructions on navigating WDI indicators will be
provided.
2.) Economic Indicators:
Provide data for the period of coverage for each of the two
countries selected (required).
· Interest rate
· Exchange rate
· GDP per capita growth – annual %
· Consumer Price Index
· Unemployment, total (% of total labor force)(modeled ILO
estimate)
Discussion Points:
· After specifying the economic indicators for each country,
provide a brief explanation of these factors listed above affect
trade flows.
3.) Health Indicators (all required)
Provide data for the period of coverage for each of the three
countries selected.
· Life expectancy
· Under 5 or child mortality rate
· Domestic general government health expenditure (% of GDP)
4.) Education (all required)
· Government expenditure on education as a % of GDP
· Adult literacy rate
· Educational attainment, at least completed upper secondary,
population 25+ years, total (%) (cumulative)
Discussion Points: One of the key considerations of an MNC in
determining an investment destination is the human capital of
the workforce of the country. Human capital is determined by
the health, the educational attainment, the skill set and the
health status of the labor force. Use the information obtained in
your analysis in part 3 and 4 to comment on the human capital
potential of the countries you are analyzing.
5.) Governance Indicators (Please familiarize yourselves with
the meaning of each of the indicators chosen (you are required
to use only 3 of the following variables). You can, however, use
them all if you want.
· Political Stability and Absence of Violence/Terrorism:
Percentile Rank (required)
· Rule of Law: Percentile Rank (required)
· Control of corruption: Percentile Rank (required)
· Voice & accountability (not required)
· Government Effectiveness (not required)
· Regulatory quality (not required)
·
The Governance Indicators can be found at the World Bank
Institute at the following site: World Development Indicators
(World Bank) Data Set .
Discussion Points: A review of the governance indicators of a
country factors significantly in the decision of an MNC to
extend its operations to a particular country. Use the
information obtained in your analysis in part 5 to measure the
investment climates of the countries you are analyzing.
Running head: KENYA AND AUSTRALIA
1
KENYA AND AUSTRALIA
5
Kenya and Australia
Irem Okdemir
Stratford University
Kenya and Australia
General Electric is a public company headquartered in
Boston, Massachusetts in America. The company is a
conglomerate, which means it is a combination of different
companies that manufacture different products such as health
diagnostic equipment, airplane engines, electric turbines, and
lighting gadgets among others. Due to it vastness, it may wish
to expand to other countries. Consequently, the paper discusses
the general business environment in two countries, which are
Australia and Kenya. Australia is one of the OECD countries; it
belongs among the developed countries in the world. In terms of
economy, it is ranked the 13th largest economy in the world; its
economy is primarily based on agricultural commodities,
mineral, services, and energy (OECD, 2017). Importantly, the
country has a stable political climate due to adherence to the
law and respect to the established constitutional institutions.
The country is a democracy and conducts elections peacefully.
On the other hand Kenya is among the developing countries in
the world, whereas it gross domestic product-GDP is among the
lower middle income countries, it experiences political
instability and high levels of corruption that affect its economic
progression (Cytonn Asset Mangers Limited, 2018). The
country is a net importer of products and primarily export
agricultural products and tourism.
The table below describes the two countries in terms of
location, resources, transport infrastructure, political
conditions, and culture.
Australia
Kenya
Description of the Country
Australia is located in Oceania; it neighbors New Zealand. It
has an area of 8,600,000 Km2 and a total population of
22,015,576. In terms of Area, Australia is ranked 6th in the
world.
Kenya is located in the East Africa region in Africa. It has an
area of 525,685 Km2 and an estimated population of
40,000,000.
Resources
Australia is rich in minerals such, land for agricultural
activities that include dairy farming, wildlife that attract
tourists among others
Kenya is rich in minerals such as Magadi Soda, Fluorspar,
Titanium, and currently, it discovered petroleum. It has fertile
land used for agricultural activities where horticultural
products, coffee, tea, macadamia and avocadoes are planted
Transport Infrastructure
The country has advanced transport infrastructure that include
air, ship, and modern railway network and well maintained road
networks particularly in urban settings and those linking major
urban settings. 80% of the population lives in urban settings;
therefore, the products made in urban settings can be
transported to the large market in towns. Other products can be
exported via air or by ships.
Kenya developed the standard gauge railway that transports
products between Mombasa and Nairobi (Cytonn Asset Mangers
Limited, 2018). It has relatively good road network compared to
other African countries. It is a busy seaport and four
international airports that can be used as exit and entry points
of products
Political Conditions
Australia is a stable democracy that holds peaceful elections
where dispute is solved using the constitutional mechanisms.
The country is currently stable politically. However, it
experiences political upheaval during electioneering period that
sometimes lead to destruction of property and loss of life
Culture
Australia is multicultural due to migrants from different parts
of the world. However, the dominant cultures are the indigenous
Aborigines and the migrant British (OECD, 2017). Despite the
different cultures and its closeness to Asian countries, the
Australia associates with the western country cultures
specifically Britain. The Aborigines are mostly based in rural
areas and while the whites and other immigrants live primarily
in urban settings.
Kenya is dominated by Africans, whoever, due to the number
of immigrants particularly Indians and other Africans from the
region, it is multicultural. The official languages are English,
and Kiswahili.
Based on the comparison between Australia and Kenya,
Kenya has relatively high population that may be potential
market for products; however, its citizens have low purchasing
power compared to Australians. Importantly, 80% of
Australians live in urban settings; consequently, it is easier to
transport finished products to the vast market at a relatively
lower costs compared to in Kenya where products make in urban
settings have to be transported to rural settings where 55% of
the population live.
Furthermore, Australia is politically stable and peaceful
compared to Kenya. In this regard, the internationalization of
company should consider the political stability, the economic
stability and the cost of transport.
References
Cytonn Asset Mangers Limited (2018). Kenya’s Attractiveness
as an Investment Destination, $ Cytonn Weekly #49/2018. Web.
Accessed on 16/8/2019
OECD (2017). OECD Economic Surveys: Australia Overview.
Web. Accessed on 16/8/2019

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What is dueBy Sunday 825 Discussion Watch the Ted Talk vide.docx

  • 1. What is due: By Sunday 8/25: Discussion Watch the Ted Talk video in Moodle and discuss your perception of what is wrong with people's idea of doing international business, what issues this presents, and why companies hesitate to move into the global market. Your discussion should be 3 paragraphs in length. This week’s Task post due 9/1 : Continue your research with the Social Indicators (education and health) discussed in class in week 3 of the two countries you have chosen. This will allow you to further determine whether one country is more suitable than the other in serving as the investment destination for you company. Social indicators: · Health · Life expectancy · Under 5 or child mortality rate · Domestic general government health expenditure (% of GDP) · Education · Government expenditure on education as a % of GDP · Adult literacy rate · Educational attainment, at least completed upper secondary, population 25+ years, total (%) (cumulative) Post your findings (up to one page). This week’s Lesson (to be discussed in class next week): Case Study The Olympics are scheduled to be held in Brazil. You are the owners of a business that sells t shirts and other trade marked items at these major events. You have already invested a large amount of money into preparation including product, set up, and fees. However, the Zika virus is threatening to disrupt the participation. As a class exercise, each person will analyze the issues surrounding the Olympics, Zika virus, and the effect it will have on the economy.
  • 2. Activity 3 - Project Create a table compares the exchange rates for the two countries you are analyzing to that of the United States. Submit your findings. 1. Use the following link to find the exchange rates: · https://www.xe.com/ 1- Introduction: 1 – 1.5 Pages 2. Research Problem: 1 paragraph 3. Research objectives: 1 paragraph 4. Rationale for the Research: 1 – 2 paragraphs 5. Variables in research: 1 paragraph 6. Research hypothesis: 1 paragraph 7. Terminology: 1 – 2 pages
  • 3. 8. Research methodology: 1 - 3 paragraphs 9. Previous studies: 1-2 10. Work plan: 11. References: 1 - 3 pages 13. Appendices: Analyzing the Investment Potential of a Country You are scouting new markets for your company. The company would like to move all or part of its operations to a developing country to save resources. It is your task to evaluate the investment potential of two countries. You should display your data in a set of infographics (posters), along with the pros and cons of the possible market, and impact on the people and culture. Infographics provide a means of showing large amounts of data and information in a quick, easily accessible format. At the end of the term you will present your findings to the class by sharing your collection of infographics, which tell the stories of your countries and graphically displays the information that you used to make your scouting decision. You should have a set of 3 to 5 infographics for each country that you considered in depth that includes the following variables, (which are explained in more detail below):
  • 4. 1. Structure of the Economy 2. Economic Indicators 3. Health Indictors 4. Education 5. Governance Indicators The list of countries classified by region and by income is provided below and can be found at: List of Countries Please note the following: 1. The two countries chosen cannot be from the same region 2. Each of the countries chosen must come from one of the following income categories: Lower Income; Lower Middle Income, and Upper Middle Income. EAST ASIA AND PACIFIC American Samoa Korea, Rep. Philippines Australia Lao PDR Samoa Brunei Darussalam Macao SAR, China Singapore Cambodia Malaysia Solomon Islands China Marshall Islands Taiwan, China Fiji Micronesia, Fed. Sts. Thailand French Polynesia Mongolia Timor-Leste Guam
  • 5. Myanmar Papua New Guinea Hong Kong SAR, China Nauru Tonga Indonesia New Caledonia Tuvalu Japan New Zealand Vanuatu Kiribati Northern Mariana Islands Vietnam Korea, Dem. People's Rep. Palau EUROPE AND CENTRAL ASIA Albania Gibraltar Norway Andorra Greece Poland Armenia Greenland Portugal Austria Hungary Romania Azerbaijan Iceland Russian Federation
  • 6. Belarus Ireland San Marino Belgium Isle of Man Serbia Bosnia and Herzegovina Italy Slovak Republic Bulgaria Kazakhstan Slovenia Channel Islands Kosovo Spain Croatia Kyrgyz Republic Sweden Cyprus Latvia Switzerland Czech Republic Liechtenstein Tajikistan Denmark Lithuania Turkey Estonia Luxembourg Turkmenistan Faroe Islands Macedonia, FYR Ukraine Finland Moldova United Kingdom
  • 7. France Monaco Uzbekistan Georgia Montenegro Germany Netherlands LATIN AMERICA AND THE CARIBBEAN Antigua and Barbuda Curacao Paraguay Argentina Dominica Peru Aruba Dominican Republic Puerto Rico Bahamas, The Ecuador Sint Maarten (Dutch part) Barbados El Salvador St. Kitts and Nevis Belize Grenada St. Lucia Bolivia Guatemala St. Martin (French part) Brazil Guyana St. Vincent and the Grenadines British Virgin Islands
  • 8. Haiti Suriname Cayman Islands Honduras Trinidad and Tobago Chile Jamaica Turks and Caicos Islands Colombia Mexico Uruguay Costa Rica Nicaragua Venezuela, RB Cuba Panama Virgin Islands (U.S.) MIDDLE EAST AND NORTH AFRICA Algeria Jordan Qatar Bahrain Kuwait Saudi Arabia Djibouti Lebanon Syrian Arab Republic Egypt, Arab Rep. Libya Tunisia Iran, Islamic Rep. Malta United Arab Emirates
  • 9. Iraq Morocco West Bank and Gaza Israel Oman Yemen, Rep. NORTH AMERICA Bermuda Canada United States SOUTH ASIA Afghanistan India Pakistan Bangladesh Maldives Sri Lanka Bhutan Nepal SUB-SAHARAN AFRICA Angola Gabon Nigeria Benin Gambia, The Rwanda Botswana Ghana
  • 10. São Tomé and Principe Burkina Faso Guinea Senegal Burundi Guinea-Bissau Seychelles Cabo Verde Kenya Sierra Leone Cameroon Lesotho Somalia Central African Republic Liberia South Africa Chad Madagascar South Sudan Comoros Malawi Sudan Congo, Dem. Rep. Mali Swaziland Congo, Rep Mauritania Tanzania Côte d'Ivoire Mauritius Togo Equatorial Guinea Mozambique Uganda Eritrea Namibia
  • 11. Zambia Ethiopia Niger Zimbabwe LOW-INCOME ECONOMIES ($1,025 OR LESS) Afghanistan Guinea-Bissau Sierra Leone Benin Haiti Somalia Burkina Faso Korea, Dem. People's Rep. South Sudan Burundi Liberia Syrian Arab Republic Central African Republic Madagascar Tajikistan Chad Malawi Tanzania Congo, Dem. Rep Mali Togo Eritrea Mozambique Uganda Ethiopia Nepal Yemen, Rep. Gambia, The
  • 12. Niger Guinea Rwanda LOWER-MIDDLE INCOME ECONOMIES ($1,026 TO $3,995) Angola Indonesia Philippines Bangladesh Kenya São Tomé and Principe Bhutan Kiribati Senegal Bolivia Kyrgyz Republic Solomon Islands Cabo Verde Lao PDR Sudan Cambodia Lesotho Swaziland Cameroon Mauritania Timor-Leste Comoros Micronesia, Fed. Sts. Tunisia Congo, Rep. Moldova
  • 13. Ukraine Côte d'Ivoire Mongolia Uzbekistan Djibouti Morocco Vanuatu Egypt, Arab Rep. Myanmar Vietnam El Salvador Nicaragua West Bank and Gaza Ghana Nigeria Zambia Honduras Pakistan Zimbabwe India Papua New Guinea UPPER-MIDDLE-INCOME ECONOMIES ($3,996 TO $12,375) Albania Fiji Montenegro Algeria Gabon Namibia American Samoa Georgia Nauru Argentina
  • 14. Grenada Paraguay Armenia Guatemala Peru Azerbaijan Guyana Romania Belarus Iran, Islamic Rep. Russian Federation Belize Iraq Samoa Bosnia and Herzegovina Jamaica Serbia Botswana Jordan Sri Lanka Brazil Kazakhstan South Africa Bulgaria Kosovo St. Lucia China Lebanon St. Vincent and the Grenadines Colombia Libya Suriname Costa Rica Macedonia, FYR Thailand Cuba
  • 15. Malaysia Tonga Dominica Maldives Turkey Dominican Republic Marshall Islands Turkmenistan Equatorial Guinea Mauritius Tuvalu Ecuador Mexico Venezuela, RB Please note that you cannot choose more than ONE country from each region and you can only use countries from the list of countries provided. When choosing the countries, also make sure the country you are selecting has most of the data you need. You will lose points for choosing a country with hardly any data for the years of coverage. Project Guidelines The period of data analysis must cover 5 years (periods) starting not earlier than 1990 and ending in the most current year or the year prior to the current year. This means, for example, that you are required to choose 5 years, well-dispersed between 1990 and 2018. Please refrain from using 5 contiguous years, as the variables may not show significant (noticeable) fluctuations from year to year. A good example for selecting the period of coverage is: 1990; 1995; 2005; 2010; 2015. *Note for each variable analyzed, if you are not able to find
  • 16. data for a specific year under consideration, feel free to use data for a year or two prior or after that specific year. Variables 1.) Structure of the Economy (Latest Year Only): · Use the following variables to provide a broad economic overview of the country for the latest year for which data is available. Discussion Points: Briefly comment on the development status of each country depending on the magnitude of a particular sector in the structure of the economy. For example, an economy dominated by manufacturing or industry is likely to be a developed or an industrialized economy. · Services · Manufacturing or industry · Agriculture Example: Sample Answer to Discussion Points: The graphs show that the development status of Country A is lower than Country B because the structure of the economy is dominated by agriculture. · Analyze the share of Exports as a Percentage of GDP for each of the two countries, for the years under observation. The data can be found at: World Development Indicators (World Bank) Data Set . Detailed Instructions on navigating WDI indicators will be provided. 2.) Economic Indicators: Provide data for the period of coverage for each of the two
  • 17. countries selected (required). · Interest rate · Exchange rate · GDP per capita growth – annual % · Consumer Price Index · Unemployment, total (% of total labor force)(modeled ILO estimate) Discussion Points: · After specifying the economic indicators for each country, provide a brief explanation of these factors listed above affect trade flows. 3.) Health Indicators (all required) Provide data for the period of coverage for each of the three countries selected. · Life expectancy · Under 5 or child mortality rate · Domestic general government health expenditure (% of GDP) 4.) Education (all required) · Government expenditure on education as a % of GDP · Adult literacy rate · Educational attainment, at least completed upper secondary, population 25+ years, total (%) (cumulative) Discussion Points: One of the key considerations of an MNC in determining an investment destination is the human capital of the workforce of the country. Human capital is determined by the health, the educational attainment, the skill set and the health status of the labor force. Use the information obtained in your analysis in part 3 and 4 to comment on the human capital potential of the countries you are analyzing. 5.) Governance Indicators (Please familiarize yourselves with the meaning of each of the indicators chosen (you are required to use only 3 of the following variables). You can, however, use them all if you want. · Political Stability and Absence of Violence/Terrorism: Percentile Rank (required) · Rule of Law: Percentile Rank (required)
  • 18. · Control of corruption: Percentile Rank (required) · Voice & accountability (not required) · Government Effectiveness (not required) · Regulatory quality (not required) · The Governance Indicators can be found at the World Bank Institute at the following site: World Development Indicators (World Bank) Data Set . Discussion Points: A review of the governance indicators of a country factors significantly in the decision of an MNC to extend its operations to a particular country. Use the information obtained in your analysis in part 5 to measure the investment climates of the countries you are analyzing. Running head: KENYA AND AUSTRALIA 1 KENYA AND AUSTRALIA 5 Kenya and Australia Irem Okdemir Stratford University
  • 19. Kenya and Australia General Electric is a public company headquartered in Boston, Massachusetts in America. The company is a conglomerate, which means it is a combination of different companies that manufacture different products such as health diagnostic equipment, airplane engines, electric turbines, and lighting gadgets among others. Due to it vastness, it may wish to expand to other countries. Consequently, the paper discusses the general business environment in two countries, which are Australia and Kenya. Australia is one of the OECD countries; it belongs among the developed countries in the world. In terms of economy, it is ranked the 13th largest economy in the world; its economy is primarily based on agricultural commodities, mineral, services, and energy (OECD, 2017). Importantly, the country has a stable political climate due to adherence to the law and respect to the established constitutional institutions. The country is a democracy and conducts elections peacefully. On the other hand Kenya is among the developing countries in the world, whereas it gross domestic product-GDP is among the lower middle income countries, it experiences political instability and high levels of corruption that affect its economic progression (Cytonn Asset Mangers Limited, 2018). The country is a net importer of products and primarily export agricultural products and tourism. The table below describes the two countries in terms of location, resources, transport infrastructure, political conditions, and culture. Australia Kenya Description of the Country Australia is located in Oceania; it neighbors New Zealand. It has an area of 8,600,000 Km2 and a total population of 22,015,576. In terms of Area, Australia is ranked 6th in the
  • 20. world. Kenya is located in the East Africa region in Africa. It has an area of 525,685 Km2 and an estimated population of 40,000,000. Resources Australia is rich in minerals such, land for agricultural activities that include dairy farming, wildlife that attract tourists among others Kenya is rich in minerals such as Magadi Soda, Fluorspar, Titanium, and currently, it discovered petroleum. It has fertile land used for agricultural activities where horticultural products, coffee, tea, macadamia and avocadoes are planted Transport Infrastructure The country has advanced transport infrastructure that include air, ship, and modern railway network and well maintained road networks particularly in urban settings and those linking major urban settings. 80% of the population lives in urban settings; therefore, the products made in urban settings can be transported to the large market in towns. Other products can be exported via air or by ships. Kenya developed the standard gauge railway that transports products between Mombasa and Nairobi (Cytonn Asset Mangers Limited, 2018). It has relatively good road network compared to other African countries. It is a busy seaport and four international airports that can be used as exit and entry points of products Political Conditions Australia is a stable democracy that holds peaceful elections where dispute is solved using the constitutional mechanisms. The country is currently stable politically. However, it experiences political upheaval during electioneering period that sometimes lead to destruction of property and loss of life Culture Australia is multicultural due to migrants from different parts of the world. However, the dominant cultures are the indigenous Aborigines and the migrant British (OECD, 2017). Despite the
  • 21. different cultures and its closeness to Asian countries, the Australia associates with the western country cultures specifically Britain. The Aborigines are mostly based in rural areas and while the whites and other immigrants live primarily in urban settings. Kenya is dominated by Africans, whoever, due to the number of immigrants particularly Indians and other Africans from the region, it is multicultural. The official languages are English, and Kiswahili. Based on the comparison between Australia and Kenya, Kenya has relatively high population that may be potential market for products; however, its citizens have low purchasing power compared to Australians. Importantly, 80% of Australians live in urban settings; consequently, it is easier to transport finished products to the vast market at a relatively lower costs compared to in Kenya where products make in urban settings have to be transported to rural settings where 55% of the population live. Furthermore, Australia is politically stable and peaceful compared to Kenya. In this regard, the internationalization of company should consider the political stability, the economic stability and the cost of transport. References
  • 22. Cytonn Asset Mangers Limited (2018). Kenya’s Attractiveness as an Investment Destination, $ Cytonn Weekly #49/2018. Web. Accessed on 16/8/2019 OECD (2017). OECD Economic Surveys: Australia Overview. Web. Accessed on 16/8/2019