Question

(a) Drawing conclusions from socio-economic data.

Task: The below table shows socio-economic data of two fictitious countries. From the perspective of a business considering the possibility of undertaking business in these countries, consider what the data could mean and present three conclusions. Each conclusion should compare both countries using at least two variables. You can relate each conclusion to any type of international business (eg. you can present a conclusion from the perspective of a business choosing a new export market, a business seeking an import source, a business choosing a location for FDI, etc).

Country	Country A	Country B
1. Population	86.24 million	22.94 million
2. Area	300,000 km²	268,680 km²
3. GDP	$330.91 bil	$204.14 bil
4. GDP Per capita (PPP)	$4,600	$21,600
5. Gini Coefficient	.451	.320
6. Population below poverty line	21.6%	12%
7. % of Urban Population	45.3%	86.32%
8. Main Exports	Machinery and transport equipment, medical apparatus, garments, coconut products, fruits and nuts, copper and chemicals.	Dairy products, meat, fish, wood, aluminium, fruits and nuts.
9. Main Imports	Electrical machinery, computers, iron and steel, vehicles, fuels and cereals.	Vehicles, machinery and equipment, computers, pharmaceuticals, aircraft, fuels, and plastics.
10. Inflation	3.1%	1.8%
11. Internet Users (% of Population)	60.1%	89%
12. UN Human Development Index (HDI)	.699	.917
13. Adult literacy rate 14. Labour Force by Occupation	96.6% 45% agriculture, 15% industry, 40% services	99% 7% agriculture, 19% industry, 74% services
15. Unemployment	5.5%	3.9%

Answer 1

The discussion is based on setting up an assembly unit for vehicles.

Country A would be a preferred location for FDI in the manufacturing sector of vehicles. As the population of Country A is quite high compared to Country B, so Country A would be chosen as an appropriate location.

As of now, Country A is importing vehicles to a great extent, so setting up an assembly unit of vehicles would be an appropriate decision.

Moreover, Country A is exporting machinery and transport equipments which can be used as a component in-house for the manufacturing of vehicles within the country.