Wilcox-IB-SP10-A3 - Jason Wilcox Case#3 International...

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Jason Wilcox Case #3 International Business 1. What are the costs and benefits to South Africa of having more foreign direct investments? Or having less? The cost and benefits that South Africa get from the foreign direct investment (FDI) , is a re-investment into the South African economy. With the FDI , South Africa has improved its infrastructure, communication, and a much more advanced financial system in place. Also the increase in FDI creates the obvious in more jobs, which means more revenue and more money re-invested back into the country itself. For a country that has a staggering 25.5 percent unemployment rate in 2006, diplomats from South Africa and the South African government should be trying to sell their country to potential business’s to create more jobs and help its people get their head back above water. South Africa having less FDI would not only cost the country jobs, but it would also set them back from improving housing with electricity and running water, a better logistics platform. Transportation needs is a growing problem in South Africa and all across the continent of Africa. With narrow roads and very few routes workers spend wasted time just trying to get to and from work. Finally it would hurt South Africa in trying to build a strong long term structured financial system. (Daniels, et al 458-464) 2. How might a company try to weigh fairly the opportunities and risks of investing in South Africa? The easiest and most reliable e way a company would weigh its risk and
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This note was uploaded on 12/18/2010 for the course BME 251123 taught by Professor Grimmer during the Spring '10 term at SUNY Albany.

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Wilcox-IB-SP10-A3 - Jason Wilcox Case#3 International...

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