Global Business Analysis (Serendib and Us)

Topics: Population, Petroleum, Rural area Pages: 2 (590 words) Published: August 28, 2013
Global Business Analysis (Serendib and US)
a)Population of Serendib has 24 million with area of 65,610 sq km, thus population density of Serendib is 365 populations per sq km. United States(U.S.) population density is 34 people per sq km, Serendib has a higher population density as compared to US. Serendib with higher density has more workers to grow the economy, generate personal wealth and more residents to pay taxes for country to develop. Furthermore, Ratio of urban and rural population among the 24 million people is 20% in urban and 80% in rural, we can assumed that Serendib is less-developing country as the population in rural is higher than urban area. We check on income distribution to know how a nation’s total GDP distributed among its population. The lowest income distribution is 20% of population earned 5% from the total income. While highest income distribution is 20% of population earned 80% of the total income, which may potentially to establish numerous markets for luxury good. It is more profitable from firm to operate business in area of resident with higher income because their purchasing power is stronger.

b)Most of the main exports in Serendib seem to be agriculture resource and handcrafted such as clothing, textiles, tea, gems, rubber, coconut, etc. This proves that Serendib is a natural resource rich country and less-developing country. They imported capital goods such as crude oil, petroleum products, vehicles, fabric, etc. This show that economic structure of Serendib is more concentrated in primary structure, which is based on the extraction of agriculture resource and handcrafted. Since they imported vehicles and petroleum product, this might invest in secondary industry including manufacturing to gain more economic in the future. As the rural area of Serendib has not well developed, it has the potential to get into the market at first and gain the first-mover advantages and create a new market share of developing in agriculture...
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