Global Politics & Global Business Group Presentation
11
Introducing Foreign Multinationals into a Sub- Saharan Africa Newly Formed State by Team Squiggly
description
Global Politics & Global Business Group Presentation: Our role as economic advisers to the newly elected president of a newly formed Sub-Saharan African state after a civil war. This presentation looks at how we would advise the president in allowing FDI and MNCs into the state to rebuild the economic infrastructure, and the types of regulations needed to control the natural oil reserve and provide employment for the highly-educated adult population.
Transcript of Global Politics & Global Business Group Presentation
Introducing Foreign Multinationals into a Sub-Saharan Africa Newly Formed State
by Team Squiggly
Our role as the Chief Economic Adviser The civil war and the broken economy About our newly formed state Our State Assets:
◦ A well established school system◦ Universally educated adults◦ Oil reserve
How do we develop our economy?
Introducing Foreign Multinationals into a Sub-Saharan Africa Newly Formed State
◦ The Issues◦ Missions & Objectives◦ Benefits◦ Drawbacks◦ Limitations & Solutions◦ Any Questions?
Opportunities (Enter global market, FDI for Oil) Challenges (Promoting FDI, Increasing GDP, Limited
Capital) Year Sales1998 210961999 212172000 208682001 209352002 212672003 221562004 229452005 236012006 243882007 25146
Statistic Data by South African Petroleum Industry Association Website
Foreign Multinationals (An open attitude)
FDI is an important channel to adopt advanced technologies .
VS
Domestically controlled economy (Restricted attitude)
The system which promotes nationalism, and a strong sense of national unity.
MissionMission ObjectivesObjectives
Introducing foreign multinationals into our
economy
Foreign capitals for infrastructure and financial system rebuilding;
Employment; Internationalisation:
Corporate operation and management experience
Divergence Trade Liberalisation
Proper restrictions to protect key branches of
the economy
Laws and rules Communications with
some related international organizations
Bring cash into the country;
Stabilise the financial system and exchange rate;
Release employment pressure;
Provides: knowledge, capital, technology, expertise and global affiliates
Promotes the economic structure transformation
Money shortage and destroyed infrastructure;
destroyed economic environment;
Unemployed talented people;
Sustaining development
Multinationals create monopolies in the market and eliminate local competitors;
High travel and communication costs; Foreign firms have more power to dominate
market; Environmental problems driven from
production
Identify market entry/exit regulation; Policies Regulations to promote education,
worker training and infrastructure; Regulation on usage of “Key Assets” in the
country
SolutionSolution Prioritizing the choice of MNC; Promoting and searching new markets for
oil; Reinvestment of money in core assets
Any Questions?Any Questions?
Cohen, Stephen D. Professor. Multinational Corporations and Foreign Direct Investment: Avoiding Simplicity, Embracing Complexity, Oxford Scholarship Online, May 2007.
Gilroy, Bernard Michael. Multinational Enterprises, Foreign Direct Investment and Growth in Africa, Heidelberg, 2005, 15-16, 21-22
Jensen, Nathan M. Nation-states and the multinational corporation: a political economy of foreign,direct investment, Princeton University Press, c2006, 31
Wendy Dobson, Chia Siow Yue. Multinationals and East Asian Integration, International Development Research Centre, 1997, 109-110
http://www.sapia.co.za/stats/demand.htm
