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Expansion Import and Export (South Africa)

Primary Imports and Exports

Your company, Atlantic Carolina Plastics, wants to approach its expansion in a logical and erudite method. The company has asked your manager, Mr. Smith, to inform you of your first assignment in preparation for the expansion. He explains to you that the board of executives wants you to prepare a memo explaining the primary imports and exports for an emerging country of your choice. He also explains that the memo should contain the economic structure and the potential development of the country.

Some emerging markets you may select from are provided below; however, this list is not exhaustive. For this task, choose one of the following emerging market countries, or you may choose a different country you believe may belong on the list. Your selection will then be referred to as your host country throughout upcoming assignments.

?Pick an emerging country. (South Africa)
?Describe the economic structure of the country.
?Discuss the imports and exports of the country.
?Explain the country's potential development.
?Explain how the country would be a target market for your company's product.
?Discuss the pros and cons of expanding to the country.
?Give at least 2 recommendations explaining ways to implement your company and its products into the emerging country.

For the past 4 years, you have been working as a Business Analyst for a company named Atlantic Carolina Plastics. Atlantic Carolina Plastics, which is located in Charlotte, North Carolina, manufactures and sells plastic containers and bottles solely within the domestic market and Canada. Your company is in the process of expanding internationally and they have assigned you to a new position gathering valuable information regarding operations. Your new manager, Mr. Smith, explains to you that the new position requires examining the potential of developing new operations in an emerging nation, and for you to prepare relevant profiles and analyses.

For your first order of business, your manager, Mr. Smith requests that you select an emerging nation that appears to have promise as a good market for your company's product. He also explains that he will be giving you assignments which will test your knowledge and understanding in economic data, economic development, culture, linguistics, history, and ethics for the country that you have chosen.

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Economic Structure
South Africa ranks 70 in the 2012 Index with a score of 62.7. The scoring of 0 implies least free whereas 100 is most free. The score has been consistent from previous year with improvements in business and monetary freedom being offset by decreased scores in government spending and corruption. Transition of South Africa to a more flexible and open economic system has been due to numerous restructuring efforts. The country has made significant improvement in income growth and reducing poverty. South Africa would continue to keep efforts aimed at economic freedom and competitiveness.
The economy of South Africa grew at 2.3% in 2010, below the expected rate of 3.9%. The country is on a steady path to recovery with steady fiscal and monetary policies and a strong currency (Rand). The budget is aimed to improve economic situation of the country by reducing unemployment and poverty.
Inflation: According to Reserve Bank of South Africa, the inflation is expected to be at a level between 3-6%. The monetary policy has been relatively conservative aimed at preventing misallocation of resources. South Africa has higher inflation rates than its emerging counterparts; something which can hurt the competitiveness of the country. Hence any business would import from other emerging nations due to higher inflation in South Africa.
Budget: South Africa's budget balance witnessed a jump from surplus of 1% in ...

Solution Summary

The expansions of imports and exports for South Africa are examined.