Globalization of South Africa

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THE RAINBOW NATION, GOING BEYOND THE HORIZON - GLOBALIZATION OF SOUTH AFRICA –

ABSTRACT
This paper examines the advantage, disadvantage, trade and FDI in SA from globalization perspective. South Africa(SA) is the one of the post BRICs country and it has largest economy market in Africa. Following the democratic elections of 1994, SA corporations moved with alacrity into the rest of Africa and beyond. Mining houses led the way, followed by manufacturers and financial institutions. Multinational companies also have branched in SA because it is a beachhead for the Africa and takes 70% of African trade. The Government also supports the infrastructure and gives a tax benefit for better business environment. On top of that, now SA is facing a huge opportunity, the 2010 FIFA world cup. Consequently, SA will be getting globalization and continuous efforts are needed at the country in order to attract significant investment flows and improve the prospects for sustained growth and development.

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TABLE OF CONTENTS
Abstract…………………………………………………………………………………..i

Part Ⅰ : Understanding Africa and South Africa 1. Africa…………………………………………………………………………………..1 2. Republic of South Africa…………………………………………………………….2

Part Ⅱ : Current analysis 1. Trade ………………………………………………………………………………..5 2. Foreign Direct Investment…………………………………………………………8 3. Disadvantages……………………………………………………………………….11 4. Advantages…………………………………………………………………………..11 5. Industries in South Africa – 5 key sectors………………………………………13 6. Doing business – Global corporations in SA……………………………………15 7. Globalization………………………………………………………………..……….4 8. 2010 FIFA world cup……………………………………………………………….

Part Ⅲ : Case studies 1. Best Practice……………………………………………………………………...17 2. Worst Practice………………………………………………………………………..18

Part Ⅳ : Conclusion…………………………………………………………………….....

Appendix I – List of global automobile Industries in SA…………………………………...1 Appendix II – Global mining companies in SA……………………………………………...1 Appendix III – List of Global IT companies in SA…………………………………………...1 Appendix IV for the full list of the multinational company………………………………...1

REFERENCE………………………………………………………………………………………...1

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PART 1 : UNDERSTANDING AFRICA AND SOUTH AFRICA
1. AFRICA
Africa is the world's second-largest and second most populous continent, after Asia. At about 30.2 largest most-populous million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area. It accounts for about 14.8% of the World's human population with a billion people (as World's of 2009) in 61 territories. The continent is surrounded by the Mediterranean Sea to the north, both the Suez Canal and the Red Sea along the Sinai Peninsula to the northeast, the Indian Ocean to the southeast, and the Atlantic Ocean to the west. There are 53 countries, including Madagascar and st, various island groups and excluding the disputed territories of Western Sahara. Although Africa contains abundant natural resources, it remains the world's poorest an most and underdeveloped continent, due to a variety of causes that may include the spread of deadly diseases and viruses (notably HIV/AIDS and malaria), corrupt governments that have often committed serious human rights violations, failed central planning, high levels of illiteracy, lack of access to foreign high capital, and frequent tribal and military conflict (ranging from guerrilla warfare to genocide). According to the United Nations' Human Development Report in 2003, the bottom 25 ranked nations (151st to 175th) were all African. 75th) Within the Africa continent the distribution of wealth is so uneven. The top 5 in GDP countries mark 62% of the entire GDP, and top 10 in population take 62.5% of GDP (Figure 1).

FIGURE 1 DISTRIBUTION OF AFRICA ECONOMY

Africa is now getting attention from the World as one of Post BRICs markets, which contains a lot of Post-BRICs undeveloped natural resources with sky rocketing demand on...
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