Topic
Global Business
Instructions
(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).
Recommended length for each conclusion: approximately 200 words.
| Country | Country A | Country B |
| 1. Population | 1.28 billion | 126.45 million |
| 2. Area | 3.29 million km² | 377,915 km² |
| 3. GDP | US$9.447 trillion | $4.884 trillion |
| 4. GDP Per capita (PPP) | US$7,200 | US$42,700 |
| 5. Gini Coefficient | .51 | .38 |
| 6. Population below poverty line | 21.9% | 16.1% |
| 7. % of Urban Population | 34% | 91.6% |
| 8. Main Exports | Petroleum products, precious stones, chemicals, apparel, cereals. | Vehicles, iron and steel products, semiconductors, auto parts. |
| 9. Main Imports | Machinery, crude oil, plastics, fertilizer, iron and steel. | Petroleum, liquid natural gas, clothing, coal. |
| 10. Inflation | 3.8% | 0.4% |
| 11. Internet Users (% of Population) | 29.5% | 92% |
| 12. UN Human Development Index (HDI) | .624 | .903 |
| 13. Adult literacy rate
14. Labour Force by Occupation |
71.2%
47% agriculture, 31% industry, 22% services |
95%
2.9% agriculture, 26.2% industry, 70.9% services |
| 15. Unemployment | 8.8% | 2.9% |
(b) Construct a line graph for percentage change in GDP.
Task: The two countries you are required to analyse for Assessment Item #2 (Country Analysis Report) are South Korea and France. Using the EIU database and Excel, construct a line graph of the % Change in GDP for these two countries for the years 2013 to 2023.
Note: The EIU Database is available through the QUT Library website. Search for the relevant information using the database, export the required data to Excel and construct a line graph. Give your graph a title, label both axes and include the source of your data. This graph can be reused for Assessment #2.
An example on how to reference your data source. The source of data is EIU (2018). Country X and Country Y: Selected series 2013 to 2023 [Datafile]. Retrieved from https://eiu-bvdep-com.ezp01.library.qut.edu.au/version-2016811/cgi//template.dll?product=101&user=ipaddress&dummy_forcinglogininisapi=1)
(c) Foreign market entry mode – exporting vs. FDI (5 marks)
From the perspective of a small business with limited foreign market experience that is interested in internationalising, discuss why exporting might be more appropriate than foreign direct investment (FDI) as an international market entry mode.
Recommended length: approximately 250 words.
Answer preview
Country B with a GDP per capita of US$42,700 which is almost six times as high as that of country A at US$7,200 means that the citizens of country B have a higher financial prowess on average than those of country A. This coupled by the Gini coefficient of .51 for country A and a Gini coefficient of .38 for country B points to the fact that not only is the average citizen of county B richer than that of country A, but the resources are more evenly distributed in county B. This makes country B a great destination for foreign direct investment as compared to country A as the residents have a higher purchasing power there and are able to afford more goods and services as compared to residents of country A.
Word count: 1099