...Institutional Structures Institutional Structure of Turkey At a first glance, Turkey has a diversified economy, excellent infrastructure, and a legal and social structure of a developing nation. Proximity to Europe, integration with European markets, the external anchor of the European Union accession, and a lengthy track record of solid economic management and structural reform are the drivers of Turkey’s long-run prospects (World Bank, 2010). Turkey’s high degree of integration with the world economy, through both trade and financial channels, resulted in the country becoming vulnerable to the impact of the global recession, with the economy contracting by 4.7% in 2009. That being said, the economy has now recovered to pre-crisis levels with growth reaching 7% in 2010, shown to be a larger growth than almost all European counterparts. Despite the economic and political expansion in the last 10 years, Turkey’s battle with corruption, unemployment, income inequalities, and the Kurdish problem have been risk factors for any business that considers investing. According to corruption rankings, Turkey was ranked below South Africa, and tied for a spot with Cuba (Transparency International, 2010). Sociopolitical Structure Turkey is a parliamentary democracy with a free market economy. Since legal reforms instituted in 1926, Turkey's judicial system has been based on the Swiss Civil Code, the Italian Penal Code, and the Neuchâtel (Swiss) Code of Civil Procedure. The 1982 Constitution...
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...Summary This essay sets out to evaluate the role that small businesses play in the economy of South Africa. It discusses the role of small businesses in creating jobs, developing of new products and new markets, the flexibility of small businesses to changing markets as well as their aggregate taxes. Promoting small businesses makes sense as an economic development strategy, but with some qualifications. Small businesses are potent job creators, but so are large businesses. The attribution of the bulk of net job creation to small businesses arises largely from relatively large job losses in large firms, not to especially robust job creation by small firms. More importantly, data show that large businesses offer better jobs than small businesses, on average, in terms of both compensation and stability. Further, there is little convincing evidence to suggest that small businesses have an edge over larger businesses in innovation. However, research and experience show that pursuing large businesses is likely to be a poor economic development strategy, which suggests that promoting and fostering small businesses may offer a more viable alternative. Small businesses also contribute to the tax returns in the country. Although their contribution is far lesser than those larger companies provide, it still counts. The competition that small businesses stimulate is a driving force in the economy, as well as a challenge to the larger companies. Background Reading Small, medium...
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...South Africa A Development and Economic Overview Introduction I chose South Africa as the topic for this research paper. I have always wanted to visit South Africa but have never had the opportunity to travel there. My involvement in international development has given me an interest in this country, as it has many ties to the developing world and the history of developing countries through colonialism. South Africa is influenced by all levels of economic activity including the primary, secondary, tertiary, quaternary and quinary sectors which determine if South Africa’s commercial economy. These economic levels, along with the indicators of development, show whether or not South Africa is a developed nation and if so, how developed they are. This paper will present an overview of the economic activities in South Africa and analyze its state of development. Major Economic Activity in South Africa South Africa has a lot of influence throughout multiple levels of economic activity; from primary production to quinary services. Regarding the primary level of economic activity, they have a agriculture sector that covers both subsistence farms and commercial farms. Subsistence farms by definition consume what they produce in order to survive, whereas commercial farms produce a good in excess in order to sell it in a market for the purpose of gaining a profit (Doberstein, 2011). Through the influence of modern innovation and technology, South African farms are able...
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...South Africa Strayer University SOC 300: Sociology of Developing Countries Professor T. Taylor August 31, 2015 South Africa South Africa is located at the southern tip of Africa. It is made up of a unique demographic, and is approximately twice the size of Texas (Cia.gov, 2015). The death rate in South Africa is the highest of any country (Cia.gov, 2015). AIDS is very prevalent, with South Africa having the fourth highest rate of any country in the world (Cia.gov, 2015). Economic growth is slow, and unemployment is around 25% (Cia.gov, 2015). While the economy of South Africa is experiencing slow growth, they still use the benefits of funding from banking institutions. It is important to understand whether funding from these banking institutions, as well as the general health of the population, affects the economy and politics of the country of South Africa. The World Bank and IMF have the potential to positively impact the economy in South Africa. According to Olawale and Garwe (2010), it is essential that more small and medium enterprises (SME’s) are started in South Africa. They posit this idea due to the high unemployment rate plaguing South Africa. While the World Bank is in full support of more SME’s being opened in South Africa, South Africans fear corruption will prevent them from beginning new SME’s. On the other hand, one could draw the conclusion that loans from the World Bank and IMF are allowing the corrupt South African government to continue thriving...
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...An In-Depth Study of the South Africa as a Possible International Market Kimberly Buchanan Park University IB315 Spring 2013 Introduction South Africa is a country of contrasts: urban versus rural, white versus black, traditional versus modern. This country report will slowly peel back the layers of the country known as South Africa. It will begin by introducing the reader to an overview of the country that will include the demographics, major products, and factors that allow the country to be unique among other countries. It will, then, introduce the reader to the aspects of the culture of South Africa. Third, the report will provide information about the political and legal environment in South Africa. Finally, it will shed light on the economic environment of South Africa. Brief Overview of South Africa The Republic of South Africa is a country unlike any other. The changes this country has with stood, the demographics of its people, and the industries that are continuing to grow make for a wide array of factors that benefit the country of South Africa. Few countries are as influenced by as many cultures as the country of South Africa. The country was first influenced by the Dutch (Boers) traders who used a small section of the land as a form of refueling center during the trip to the Spice Islands in 1652 (Central, 2013). This “stopover point” was the establishment of the city that is now known as Cape Town (Central, 2013)...
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...order to help you with your studies. ------------------------------------------------- Top of Form Bottom of Form Back to Subject Index 1. UKEssays 2. Essays 3. Economics 4. Analysis Of The Emerging Country South Africa Economics Essay Print Reference This Reddit This Tweet Analysis Of The Emerging Country South Africa Economics Essay In the following pages we will analyze the place of South Africa in International Trade. In order to do so we will analyze the background of the country, develop PESTLE analysis, look at the balance of payments as well as trade balance, examine exchange trade policy and growth rate of the economy. In conclusion we will provide forecast for country's development. Today South Africa's trade and industrial policy is moving away from a highly protected, inward looking economy towards an internationally competitive economy, capitalizing on its competitive and comparative advantages. From the period of apartheid, it has made great progress in dismantling its old economic system, which was based on import substitution, high tariffs and subsidies, anticompetitive behavior, and extensive government intervention in the economy. The leadership has moved to reduce the government's role in the economy and to promote private sector investment and competition. It has significantly reduced tariffs and exports subsidies, loosened exchange controls, cut the secondary tax on corporate dividends, and improved enforcement of intellectual...
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...(2010) The role of South Africa in SADC regional integration: the making or braking of the organization∗ Saurombe Amos University of South Africa Sauroa@unisa.ac.za Abstract. The economic and political strength of South Africa in Southern Africa is undeniable. South Africa is the strongest economy in Southern Africa and in the whole continent of Africa. Regional and global interests lie at the heart of South African’s foreign policy resulting in the need to create compromises that may disadvantage the SADC block. South Africa is the current chair of SADC and its leadership role is critical. The country is also the gateway to foreign direct investment to the developing world. This paper seeks to discuss the critical position which South Africa finds itself in. The challenge to provide leadership at regional and global level has also been compounded by the domestic outcry for a need to deal with issues at home. South Africa holds the key for the success of SADC both at economic and political levels. However SADC’s dependence on South Africa may turn out to be a stumbling block since there is divided attention. This has been shown by South Africa’s ‘go it alone’ approach when it comes to negotiating trade agreements, e.g. with the EU, as well as its unwillingness to compromise on the Economic Partnership Agreements (EPAs) that the other SADC Members States are signing. What is obvious is that SADC needs South Africa but at the same time South Africa is at liberty to choose...
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...electricity used by South Africa comes from coal produced electricity (Statistics South Africa, 2009). South Africa ranks in the top twenty countries in the world in carbon dioxide emissions. As a result, South Africa has set out to lower its greenhouse emissions and push for renewable energy. There are many paths to take in reaching this goal, but I believe South Africa should adopt a similar program as Germany’s Community Wind Power program in order to meet some of its renewable energy goals and needs and solve some of its infrastructure and economic issues. Background of South African Energy Eskom is South Africa’s national power utility, which generates about 95 percent of the electricity in South Africa (U.S. Commercial Service, 2012). Of the total electricity generated in South Africa, 88 percent comes from coal fired power, 6.5 percent comes from a nuclear station, and 2.3 percent comes from hydroelectric and pumped storage schemes (U.S. Commercial Service, 2012). Also, South Africa is crucial to the rest of Africa’s infrastructure, supplying two thirds of Africa’s electricity. In addition to being so crucial to Africa’s infrastructure, South Africa is one of the cheapest electricity producers in the world. The 2009 world economic crisis reduced South Africa’s power supply constraints, but this reduction didn’t last long. In 2010, the electricity demand in the country began to rise again with no sign of slowing down or declining. As a result, the South African government...
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...Mahindra & Mahindra in South Africa Evelyn Eugenio AMBA 660 9044 Dr. Lorna Wallace Executive Summary In 1945, Mahindra & Mahindra Ltd. (M&M) functioned as a steal trading entity established by two brother located in India. During 1947, they decided to join the automobile industry and created the UV and tractor vehicle which become the core competency. Even though the strategic method was effective domestically in India, M&M had to reposition its strategic position in South Africa and they have several alternatives. However, M&M was aware that entering the Indian automobile markets would be competitive but they still proceeded. This was a successful multinational venture that has contributed to a successful global economy. However, the strategy was not effective in South Africa and therefore several alternatives were considered. First strategic alternative was to assemble vehicles in South Africa. The second alternative was to establish M&M’s own manufacturing unit in South Africa would be beneficial to the company. The third alternative was to reconstruct the current business model that in India and expanding into Africa by using them as export hub. The last alternative was the wait and watch method after the automobile recession occurred in South Africa. This case will explore several alternatives available for M&M in order to expand the multinational company strategy and enhance integration to the global market. It will analyze...
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...Mahindra & Mahindra in South Africa Evelyn Eugenio AMBA 660 9044 Dr. Lorna Wallace Executive Summary In 1945, Mahindra & Mahindra Ltd. (M&M) functioned as a steal trading entity established by two brother located in India. During 1947, they decided to join the automobile industry and created the UV and tractor vehicle which become the core competency. Even though the strategic method was effective domestically in India, M&M had to reposition its strategic position in South Africa and they have several alternatives. However, M&M was aware that entering the Indian automobile markets would be competitive but they still proceeded. This was a successful multinational venture that has contributed to a successful global economy. However, the strategy was not effective in South Africa and therefore several alternatives were considered. First strategic alternative was to assemble vehicles in South Africa. The second alternative was to establish M&M’s own manufacturing unit in South Africa would be beneficial to the company. The third alternative was to reconstruct the current business model that in India and expanding into Africa by using them as export hub. The last alternative was the wait and watch method after the automobile recession occurred in South Africa. This case will explore several alternatives available for M&M in order to expand the multinational company strategy and enhance integration to the global market. It will analyze...
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...agreements take countries that are in similar regions and in certain economic ways. All countries in the EU have the same currency which creates certain benefits but has also created economic disaster for many countries involved. The goal of regionalization is to benefit all countries involved and become stronger globally as a whole. These two forces have had tremendous impact on the small African nation of Lesotho. Foreign influences have shaped Lesotho throughout history and currently determine their economic factors today. Most recently trade agreements have made Lesotho dependent on Chinese manufacturers’ (major imports) and major US clothing companies like Levi and the GAP(major exports). These agreements shape Lesotho’s whole economy including wages, employment/unemployment, and the health of citizens. Possible Industries Textile manufacturing provides most of the jobs for Lesotho citizens. Some other possible industries that could offer employment...
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...has also been a significant transitional year for South Africa’s economy. As stated in the Economist (2010) South Africa is the biggest economy in Africa; furthermore, the World Bank has ranked South Africa as an upper middle-income economy (which accounts for an income of $4,086 to $12,615 per annum) as like as Brazil and China. Additionally, taken several factors into account, the Heritage Foundation (2013) scores South Africa’s economic freedom as the 75th (out of 186) in the 2014 Index. To assess a country’s performance, one looks at its GDP development, or in particular the real GDP growth, as a main indicator for a countries performance. Figure X reveals South Africa had a substantial growth over the years except from 2009. Because of its global integrated economy, it has not been unaffected by the global crisis. Nevertheless, BRIC countries have been less affected, looking at the aggregated figures in Figure X. Figure X: Economic Indicators Source: OECD (2013) In Figure X2 you can see the diverse economy of South Africa and the key sectors roughly contributing to the GDP. Figure X2: Composition of South Africa’s Key Sectors contributing to GDP Source: Own Illustration, Statistics South Africa (2012) On the basis of the industrialization section in this paper, caused by South Africa’s de-industrialization, it failed to engage and develop the manufacturing industry as an accelerator for exporting. One of South Africa’s biggest economical challenges is the unemployment...
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...Globalization in South Africa Regarding the globalization of South Africa, the lifting of the apartheid policy caused a dramatic shift in the both the political and economic policies of the nation. Furthermore, this was absolutely pivotal to the growth and progression of a nation that has now become a major emerging market and one of the world’s largest exporters of metals and minerals. South Africa is a country located on the southern tip of Africa. South Africa has had a long history of colonialism under both the British and the Dutch. The discovery of diamonds and gold in this region spurred the development of the area and immigration to the region while suppressing its native populations. And while the control the empires retained over their colonies was crumbling, South Africa as a colony did as well. It was granted independence in 1931, but when the Nationalist Party took power in 1948, it strengthened the segregationist policies that were established under colonial rule. South Africa finally achieved a full democracy with the elections of 1994, the first time the black population was allowed to vote, bringing the African National Congress (ANC) to power with Nelson Mandela as its leader. This officially brought an end to apartheid and marked the beginning of new era for the country. Although South Africa was formally granted independence in 1931, the South Africa that we know today didn’t exist until early 1990’s when apartheid was lifted. The policy of...
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...International Business of Africa 1-18-14 South Africa South Africa is currently the most advanced nation on the entire continent of Africa. By exploring the rich history of South Africa, including its most prominent historical figure Nelson Mandela; as well as the geography, government, demographics and the economic and financial sectors; one can understand why South Africa is the most advanced nation on the continent. South Africa has been populated for millions of years. In one of South Africa’s provinces, Gauteng, there is a complex of limestone caves where fossilized evidence of humans dating back to three and half million years ago has been found which gives this area the nickname the, “Cradle of Humankind.” The indigenous people of South Africa were hunter gatherers or farmers and by 300 AD the Bantu speaking majority began to settle south of the Limpopo River joining the Khoikoi and San people who had been living there for thousands of years. By the 1400s, the Zulu and Xhosa tribes established large and powerful kingdoms in the South Africa region. In the 1480s, European explorers began to arrive in the area to collect supplies. The arrival of the Europeans and their eventual system of Apartheid is what spawned the rise of Nelson Mandela. Apartheid’s roots begin with the arrival of the English and the Dutch in the sixteenth century. The Europeans had come to South Africa to establish a new home and way of life. With them, they brought weapons, technology...
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...Banking and Financial Systems SOUTH AFRICA [pic] | | Summary Introduction page 3 I) Executive Summary. page 4 II) The Financial System: page 4 A) The Banking System page 5 B) The Financial Market page 7 III) The Legal Side: page 7 A) Legal Framework page 7 B) Regulatory Oversight page 8 IV) Depository-Taking Institutions. page 9 V) Banking Issues and Challenges Prospect. page 10 Conclusion page 12 Sources page 12 Annexes page 13 Introduction For years ago, South Africa has been facing a lot of racial, political and demographic problems. On the first hand, this country must face these elements and on the other hand it must still working to become a powerful economic country in the world. With this report we are going to develop the Financial System of South Africa which is a key sector in the country. The South Africa Gross Domestic Product is worth 277 billion dollars or 0.45% of the world economy, according to the World Bank. While it contracted 2.80% over the last 4 quarters, the economy was expected to move back into growth in the last quarter of the year and GDP growth of 1.5% is forecast for 2010, rising to 3.2% by 2012. South Africa has a two-tiered economy; one rivaling other developed countries and the other one with only the most basic infrastructure...
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