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Essay / Research Paper Abstract
This 8 page paper looks at the reasons why a company manufacturing RVs may want to open a new manufacturing facility in South Africa, and then considers the different social, political and economic influences and barriers that may exist and finally considers the best method of entry into the market. The bibliography cites 7 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TERVsafrica.rtf
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Unformatted sample text from the term paper:
and comparative advantage. If we consider a fictitious company which is considering starting up a business manufacturing RVs in South Africa then the company will want to be gaining some
specific advantages an undertaking that action. South Africa has a number of advantages. There are many areas which are near ports making transportation easy, the country is also located in
a strategically advantaged area for exporting to other areas in a cost-effective manner. It includes access to many markets where the demand for RVs is developing in line with general
economic developments, not only African countries but also towards Asia as well as Europe. South Africa can offer a number of advantages. The economy is doing well and is located
close to many inputs for the manufacture of RVs including metals and components. The country is also one where wages are relatively low and land is relatively cheap, but it
is accompanied by a fully developed commercial infrastructure in most areas. In addition to this there is also a suitably qualified and experienced workforce. Many other companies have set up
similar operations in South Africa, including General Motors South Africa which has set up a plant within South Africa also for the manufacture of RVs (The Auto Channel, 2006). By
locating in a country where the automotive industry is already established the learning curve will not be as steep as establishing in a country where this industry is not already
established. The company should locate its facilities within the Port Elizabeth area. This is an area that has good transportation links by road, rail, air and sea. See is particularly
important in the export markets which can be reached from South Africa. This is also an area where there is industry and the required in the structure as well is
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