International Businessess

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South Africa is one of the most sophisticated and promising emerging markets in the world, offering a unique combination of highly developed first world economic infrastructure with a vibrant emerging market economy. It is also one of the most advanced and productive economies in Africa.

Country of Huge Potential
South Africa leads the continent in industrial output (40% of total output) and mineral production (45%) and generates most of Africa's electricity (over 50%).
http://www.southafrica.info)
Political environment
South Africa, since the end of apartheid and its first democratic elections in 1994, has liberalized the economy. According to the Constitution, the composition of South Africa's Parliament is as follows:

(1) Parliament consists of -

(a) the National Assembly; and

(b) the National Council of Provinces.

(2) The National Assembly and the National Council of Provinces participate in the legislative process in the manner set out in the Constitution.
http://www.ngo.grida.no/soesa/nsoer/issues/politic/intro.htm

South African government lately has enacted economic reforms that made it easy for foreign capital to flow in and out. They performed well on various surveys of competitiveness and the business environment. The economy was managed spectacularly, with inflation brought down to single digits relatively quickly, budget balances within a reasonable ability to pay, and political stability guaranteed by the ANC's (African National Congress) popularity.

Economic Environment

National Income
South Africa is the economic powerhouse of Africa, with a gross domestic product (GDP) four times that of its southern African neighbors and comprising around 25% of the entire continent's GDP.
South Africa - GNP: (2004) 165,542 (nominal '000,000 U.S$)
South Africa - GNP per capita: (2004) 3,630 (nominal U.S.$)
South Africa - Death rate: (2004) 20.4 per 1,000 population

http://www.britannica.com/eb/question-555568/19/GNP-per-capita-South-Africa

http://www.southafrica.info/doing_business/economy/econoverview.htm as retrieved on 29 Jul 2007 07:27:19 GMT.
According to the above table South African's economy is growing and in 2005 it has grown by more than 4% and inflation is also moderate. National debt as a % of GDP, External debt is a % of GDP has reduced gradually which is a good sign.

Physical environment
Resource rich
Its major strengths include its physical and economic infrastructure, natural mineral and metal resources, a growing manufacturing sector, and strong growth potential in the tourism, higher value-added manufacturing and service industries. (http://www.southafrica.info)

Financial environment

Strong BOP
The financial account of the balance of payments registered a larger surplus in 2005 than in 2004. A large foreign direct investment ...