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Pest for South Africa

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UK
Political
• The political culture is very stable with a head of state who is Queen Elizabeth II and a Parrliamentary government which comes up for re-election every 4 years.
• Part of the EEC, NATO, etc. There is a strong international and inter-governmental co-operation.
• Has strong economic, cultural, military, scientific and political influence
• Grants are made available for countries outside of the UK to set up businesses
• There is no military action within the country but there is participation in overseas unrest. Military expenditure ranked 4th in the World

Economic Factors
• GDP fell to 0.2%. Consumers and businesses have reigned in their spending and investment plans as they fear spending cuts and tax rises.
• Interest rates are presently low at 0.5% which makes borrowing low and should encourage investment from overseas.
• Inflation down to 4.2%
• Taxation rate is high in the UK which may deter oversea employees and investments.
• Well developed country, presently with an economy struggling to come out of recession
• 6th largest economy in the world and third largest in Europe
• Currency: British pound. The exchange rate is presently £1 to $1.63
• Service sector makes up 73% of GDP – London is the world’s largest financial sector alongside New York. Edinburgh is also one of the largest financial centres in Europe
• Other key industries include: tourism, aerospace, pharmaceutical, automotive
Socio/Cultural
• Unemployment rate: 7.7%. As there is a high level of unemployment from people skilled in most industries, there is a good pool of skilled labour available and at an affordable price.
• Workforce mainly centred in South East England
• The population has been ageing. This has increased the costs for firms who are committed to pension payments for their employees because their staff are living longer. It also means some firms

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