Project Country Part C Morocco and Germany

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Investment Potential (20 points)

3. Overall, what is your group’s informed opinion as to how receptive your countries are to FDI?

a.Which country, of the pair, is the most receptive?

Provide a well-reasoned

argument using the evidence presented in Projects Part A, Part B, the

Economics and the Infrastructure parts of this project.

b. Country 1 – well-reasoned argument (4 points), and data from Part A (2 points),

Part B (2 points), and Part C (2 points)

c. Country 2 well-reasoned argument (4 points), and data from Part A (2 points),

Part B (2 points), and Part C (2 points)

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Ali Gari & Fassi Fehri Mehdi Bus 366 Doctor Castater 9/23/2018 Country Project about Germany and Morocco Part 1: Chart of Morocco and Germany 1. Power distance: In the Hofstede dimension we are comparing Morocco and Germany with the power distance tool. This dimension shows us the degree in which affiliates of a society agree to take a hierarchical or inadequate distribution of power in societies and within the family itself. In that particular case we can truly know how a structure works but not only that. We can also notice the behavior of people and how the interact and treat each other. Countries with high-power distance will expect a strong obedience of the child to the parents, on the other hand countries with lower power distance parents tend to give more freedom to the children. In high distance countries, people with money tend to show it whereas countries with low power distance less. With a score of 70 in the dimension Morocco is a hierarchical society, which means that people accept a hierarchical order in which everybody has a place and the power is centralized. Whereas Germany has a score of 35 in the dimension that means it is a low power distance country. A culture with high power like Morocco, centralization is very popular, and people assume that they should be led by a boss. On the other hand, Germany everyone is treated equally no one has more power than anyone. 2. Individualism vs Collectivism: Individualism and Collectivism, is the extent to which someone favors to be in separation from group and their rules. Countries with a high score are individualistic, countries with low score are collectivistic. The German society with a score of 67 is a perfectly individualistic. Small families where the parents and children relationship is really important than other member of the family. In the German case, “Loyalty is based on personal preferences for people as well as a sense of duty and responsibility” (Hofstede, 2010). There is a contract between the employer and employee which defines the term of the work. Morocco with a score of 46 is considered a collectivistic society. In that case, Moroccan people have a huge commitment to the member of the family and group. Loyalty is the key part of their life. In collectivist societies the relationship between employee and employer are completely different than German ones. They are perceived as moral term pretty much like family. Everything is centralized and the hiring and management process is done by the top level. 3. Masculinity Vs Feminity High score in the dimension indicates that it is a masculine society. We can know by the score of the differences between female and male in the environment. High score means that the country is driven by competition and success. In those countries men are seen as powerful and aggressive. In the countries with low score, the dominant value in the society is equality between all human beings. In that particular case the sign of success is when everyone have a healthy and good quality of life. “The fundamental issue here is what motivates people, wanting to be the best (Masculine) or liking what you do (Feminine)” (Hofstede, 2010). With a score of 66 Germany is a masculine society, performance is a key value in this society, and this performance driven starts really early in school. In Germany people live to work since they take pleasure to do that. Morocco score an intermediate in the score of 53 which means that they are in between masculinity and feminity it is more family driven and less about achievement and success. 4. Uncertainty Avoidance: The fourth Hofstede dimension is Uncertainty avoidance. In that particular point, we can see if the culture are risk taking oriented or less risk taking oriented in everyday life situation, like living, working and also decision making. Morocco score a 68 in this dimension which means that they tend to prefer avoiding uncertainty. In that particular case, those types of countries are rigid and intolerant towards other cultures or belief. These countries needs rules to maintain the order of a normal life. For the business world Moroccans tend to higher people from their own family or people that they already know. They are completely intolerant towards unorthodox behavior and the ideas that are not like them. Even though they need rules, Moroccan people tend to not like to work hard. Religion is a big part of the culture and people believe that god controls everything. The score for uncertainty in Germany is 65, in that particular case German have a small preference for uncertainty avoidance. That shows that Germany is part of the culture that do not really like to take risks. Given the background of Germans, they tend to be very thorough and careful also really organized, but they don’t like too much risk that can eventually lead to high benefits or high loss. To take risks they would probably need to do meticulous research and be informed of everything around it. They already know that the country is rich and have comfortable lifestyle without taking risks since the welfare in Germany is great. However, Germans people are really productive and made a lot of companies that are internationally known for being the best quality like cars industries or retail industries. Part 2 Ethics: a) The CPI is an evaluation of the corruption level in different countries and it has a ranking of those countries based on the corruption in the public sector. This index has pretty much two way of doing it surveys and assessment of corruption which are collected by professionals of the field (transparency.org). the CPI has some flows since we can’t really access a database that shows us the economical data of countries that has a huge corruption level. A lot of those countries’ corruption is completely illegal, but everybody does it and use it. To be included in this famous ranking, the country should be included in a minimum of three of the CPI data sources and it must be recent too(transparency.org). There is scale of 0 to 100 that represent the CPI evaluation and the lower you are in that score that worst you are in the level of corruption. As you may already know the higher the country is, the higher the education is and every other aspect of regular life. For example, a functional judicial system and integrity and transparence for public faces. Freedom of speech is one of the key factors of high score countries since it suppresses every form of corruption because everyone is free to say what they think about the system. On the other hand, we have countries with low score have huge corruption and are completely different of high scores. For example they don’t have freedom of speech, judicial are all biased, people in the top of the pyramid have the supreme power and can do what ever they want without being judged. Also, the education is horrible, no critical thinking. b) Germany and the USA are in pretty good shape both are ranked high in the CPI. They are both in the top 20 which means that they are transparent. That shows that those countries are pretty similar in the question of education, judicial system and freedom of speech. Maybe Germany is a little bit better since it is better ranked. c) Morocco and USA are completely different. Morocco is ranked 80 which is awful and USA 16 which shows a huge difference between those countries. Human rights, education and freedom of speech are key element of this huge difference between those two countries. In Morocco leaders have no transparency, corruption plays a major role in the interaction of human being. d) Germany is a leading country in Europe, the German companies are known in the world for their transparency it is unlikely that they use bribery or any type of corruption to have more power. They have set of rules made by the German criminal Code that makes illegal those kinds of act. Moreover, they will be fined with huge amount of money that will probably destroy those companies. Germany has also really powerful institutions that make them feared by companies ( business-anti-corruption.com). Education and healthcare are for free that it is probably a huge step that makes that country even less corrupted. Lastly it is a democratic country everyone is free to think whatever they want. The USA are pretty much the same, their score is pretty high. In the case of the USA, it is a free speech country everyone is free to say what ever they want. It is a democratic country and people votes for a president. There is probably a bit more corruption than in Germany in poor states since there is less control and people use more cash. But overall the country is doing besides their wages for the small workers and their awful social system that doesn’t allow people to have a decent healthcare without paying. That is probably why Germany is a bit better. In the case of Morocco , it is really corrupted because first of all the country is ruled by a king that have all the power even though it is supposed to be a parliament monarchy. Religion is omnipresent and the education doesn’t allow people to have a critical thinking developed. The healthcare system is awful. Companies are highly using bribery to have bigger part of markets. References: https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6d-model-of-nationalculture/ https://www.hofstede-insights.com/product/compare-countries/ https://www.transparency.org/country https://www.business-anti-corruption.com/ Fassi Fehri Mehdi , Ali Gari Dr Castater Bus 366 10/24/2018 Country Project B: Trade and Investment: Country one is Germany, Foreign Direct investment is huge in Germany since this country is considered as a safe investment country and mainly due to its tremendous industrial network and highly knowledgeable workforce that makes Germany among the countries attractive to invest in it. As stated by santandertrade.com “Among other attractive traits are the favorable infrastructure and a stable legal framework and a location at heart of Europe” ( santandertrade.com). Germany is probably known for export of goods and services around 1.8 trillion dollars for this country. They are famous for their auto industry which is extremely performant and sell all over the world cars( Daimler, Volkswagen), they also are huge in the drugs industry and export medication all over the world (Bayer, Boehringer) and they export also high technology since they have among the best technological industries ( Siemens). Import of goods and services are less than the export of goods and services which is good for the country since it creates balance trade surplus and more cash for Germany to invest in other things. The main imports for Germany are technological machinery like computers which they do not produce and mineral fuel and foreign cars. Merchandise Import is pretty the same as the import of goods that they have it will be essentially foreign cars, crude oil or minerals and technological machinery, it is pretty much the things that the country doesn’t produce or have. Merchandise export is the same as the export of goods and mainly cars, medication and technology. Country two is Morocco foreign direct investment are getting lower and lower in this country and fall 1.694 billion dollar mainly because of the recession and the problem that occurred in this region ( Arabic spring). According to santandertrade.com “Morocco has launched a vast project of economic modernization to attract more FDI. Casablanca aims to become an international financial center. The construction of Ouarzazate Solar Power Station is expected to cost a total of EUR 2 billion” (www.santandertrade.com). So, the FDI would probably better in the coming years. Morocco has a negative balance of trade they import more than they export. The main export of Morocco is phosphate by far and then cars and textile products since the labor is still cheap there, the main import of morocco would probably be crude petroleum, telecommunication equipment and textile fabric. Merchandise import and merchandise export are pretty much the same as the main export and import of Morocco. Comparative advantage and firms and industries: The comparative Advantage of Morocco is phosphoric acid, they are the first producer and exporter of phosphoric acid as stated by (atlas.media.mit.edu). Morocco has the biggest reserve of phosphate (worldatlas.com) in the world about 2/3 and phosphoric acid is created with phosphate which gives clearly to Morocco a comparative advantage in producing this mineral. In the case of the firms and industries that makes Morocco are mineral industries and more precisely the phosphate industry the company that produce most of that is called OCP which stand for Office Cherifien des Phosphates and is the main exporter of Phosphate in the world (ocpgroup.ma). In the case of Germany the comparative advantage would be the automotive industry since Germany is one of the country which export the most high end cars and super good quality cars. The top export in 2017 of Germany were cars for a 157 billion dollars (worldstopexports.com). all over the world people know that german car are the most reliable and have the best technology, they represent luxury and high quality/standards cars. So, it is undeniable that Germans have a comparative advantage in creating high end cars in the world. In the case of Germany Volskwagen group, Daimler and Bmw group are the main player of the high end cars in the world and produce the best cars too and generated around “ 400 billion dollars in total sales in 2017” (statista.com). Political Risk : Worldwide governance indicators The 6 factors of the world bank: the voice and accountability are a “captures perceptions of the extent to which a country's citizens are able to participate in selecting their government, as well as freedom of expression, freedom of association, and a free media” (worldbank.org). its pretty much how the people interact with the political life of a country and if the country is really a democracy and egalitarian country or not. Political stability and absence of terrorism is how the country is politically speaking if there is no problem in that country like war, oppression and no terrorism or something like that. Government effectiveness “captures perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government's commitment to such policies” (worldbank.org). Regulatory quality are the regulations within the country it “captures perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development” (worldbank.org). Rule of Law it is pretty much a set of law that a country has and they should be strictly the same for everyone and applicable for everyone no arbitrary judgement everyone is equal from bottom to the top. Control of corruption “captures perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, as well as "capture" of the state by elites and private interests” (worldbank.com). We going to start from Germany and explain each six factors for this country, in the case of the voice and accountability Germany is super high for the year 2017 it scores a 95% which mean that the citizen can participate fully to the government and can have a voice within the country (freedom of speech and freedom of expression). Political stability and absence of violence is 67 % for the year 2017 it is a low score for Germany which is one of the most powerful country in the world, but it can be explained by some political parties like the extreme far right wing that is gaining some power throughout the country. Government effectiveness is 94% which is a great score that shows that the government is taking some great initiative to make the country public service and civil service great, everyone is taking advantage of the good policies and reforms that the government is doing. Regulatory quality is 95% which is again good and proves that the government is promoting and trying to implement policies to make the private sector way better in Germany. The rule of law in Germany scores a 91% for 2017, it proves that everyone is the same and no one is above the law in Germany which is just great. Finally, the control of corruption scores a high 94 % it shows that Germany is tough on corruption and can not accept this kind of behavior. Morocco on the other hand is doing low in the six factors, in the case of voice and accountability, Morocco is doing low 28 % for the year 2017 the citizen can really participate because its an absolute monarchy disguise as a parliamentary monarchy, the monarch has the full power and control everything so there is no real participation in the political sphere of Morocco. Political stability is scoring a 30% in Morocco which is low too since it is in a fragile region (north Africa) and they already had issue with in the Arab spring and also big tension with Algeria. The government effectiveness scores a 48 % for 2017 which is median the quality of implementation of policies are just average due to high corruption in the public system. The regulatory quality in Morocco scores 44% which is just under average the government doesn’t really formulate and implements policies to helps the investors of this country. The rule of law scores a 49 % which is average, in that case Morocco is doing way better than the past ten years but some people are always above the laws and they do what ever they want. Last the control of corruption scores a 52% which is average in that area Morocco is doing better than what it was but the country still have a lot of work to do to remove this scourge since it is everywhere from the public sector to the private sector, everything work with corruption. Bibliography: https://en.portal.santandertrade.com/establish-overseas/germany/foreign-investment https://globaledge.msu.edu/comparator/home/results?year=&field=BN-KLT-DINV-CD&field=NE-EXPGNFS-CD&field=NE-IMP-GNFS-CD&field=TM-VAL-MRCH-CD-WT&field=TX-VAL-MRCH-CDWT&country=53&country=115 https://atlas.media.mit.edu/en/profile/hs92/2809/ https://www.worldatlas.com/articles/countries-with-the-largest-phosphate-reserves.html http://www.worldstopexports.com/germanys-top-10-exports/ http://www.ocpgroup.ma/ https://www.statista.com/topics/3202/automobile-industry-in-germany/ http://info.worldbank.org/governance/wgi BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Country Analysis Project: Part A This is Part A of the Country Analysis Project for BUS 366: International Business. You may form up to groups of two (2) to complete this project. The countries you analyze for Part A will be the same countries used for Part B and Part C. Please answer the questions below for Part A and turn in to Canvas by Friday, September 28th , 2018 by 11:59EST. This Project is worth 20 points. I will run the submissions through an anti-plagiarism software. Failure to reference the websites or any other research will result in a grade reduction of 3 points in your project score. Please include the graphs provided by the websites! Failure to do so will result in half the points being subtracted from your grade. Last but not least, please place all name of all group members (if applicable) inside the file. This makes it easier for me to grade and causes less confusion for you in the future. Failure to do this may result in points (-5) being subtracted from your grade. PLEASE NOTE: The countries you choose for Part A will be the countries you analyze for Parts B and C. If, for some reason, information is not available for your countries at the websites cited by a particular question, please choose other countries to answer the questions. Culture: (12 points total) 1. Using the tools at https://geerthofstede.com/culture-geert-hofstede-gert-jan-hofstede/6dmodel-of-national-culture/ and https://www.hofstede-insights.com/product/comparecountries/, CHOOSE TWO countries (neither one the USA) and COMPARE them among only the four HOFSTEDE dimensions presented on the website and in class. Provide the following: a. a short explanation of each dimension, (4 points) and b. an explanation of how the dimension applies to both countries, (8 points). Ethics: (8 points total) 2. Go to Transparency International, https://www.transparency.org/country and compare your two countries’ Corruption Perception Index scores (see Question 1), with that of the USA. Why or why not is your country’s score lower than that of the USA? Provide the following: a. A brief explanation of how the Corruption Perception Index is created, including what a high score and what a low score means. (2 points) b. Country 1’s score compared with the score of the USA (2 points), c. Country 2’s score compared with the score of the USA (2 points). d. A brief explanation as to why your countries’ scores are different than the USA’s score. (2 points) BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Country Project Part A Rubric Names: Countries: 1. Culture Short Explanation of Each Cultural Dimension a. Power Distance (PD) a. Individualism (IND) a. Masculinity (MAS) a. Uncertainty Avoidance (UA) b. How PD applies to Country A b. How PD applies to Country B b. How IND applies to Country A b. How IND applies to Country B b. How MAS applies to Country A b. How MAS applies to Country B b. How UA applies to Country A b. How UA applies to Country B Possible Points 1 1 1 1 1 1 1 1 1 1 1 1 12 2. Ethics a. A Brief Explanation of the Corruption Perception Index (CPI) b. Country 1's Score compared with the USA's score c. Country 2's Score compared with the USA's score d. Why are Country 1's and Country 2's scores different from USA 2 2 2 2 8 Failure to reference -3 Failure to insert graphs and tables -10 Up to one week late -3 After one week late -10 Failure to place names in the digital file -5 Total for Part A: Culture and Ethics 20 BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Country Analysis Project: Part B With the countries you analyzed in Part A, please answer the questions below and turn in to Canvas by Friday, October 26th, 2018 by 11:59EST. PLEASE NOTE: The countries you choose for Part A will be the countries you refer to through Parts A, B, and C. If, for some reason, information is not available for one of your chosen countries at the websites cited by a particular question, please choose another country to answer that question, and NOTIFY ME and MAKE NOTE in the Project of the CHANGE. This Project is worth 62 points. I will run the submissions through an anti-plagiarism software. Failure to reference the websites or any other research will result in a grade reduction of 3 points in your project score. Please include the graphs provided by the websites! Failure to do so will result in half the points being subtracted from your grade. Last but not least, please place all name of all group members (if applicable) inside the file. This makes it easier for me to grade and causes less confusion for you in the future. Failure to do this may result in points (-5) being subtracted from your grade. Trade and Investment (40 points) 1. Using the website http://globaledge.msu.edu, or other web resources, research the trade statistics of both of your countries. Provide the tables and a brief explanation of the trade statistics for each country. Directions: i. ii. iii. iv. v. vi. vii. Go to http://globaledge.msu.edu. Click on the “Global Insights” tab. Select “By Country” Click on “Global Comparator.” Click on “Next” under “Latest data available.” Click on “Trade and Investment.” Click for the following 5 data observations: 1. Foreign direct investment, net (BoP, current US$) 2. Exports of goods and services (current US$) 3. Imports of goods and services (current US$) 4. Merchandise imports (current US$) 5. Merchandise exports (current US$) viii. Click “Next” and then select your two countries (not the US). ix. Click “Compare” x. Please copy the table that appears and place it in your assignment. BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Directions continued: b. Using the above directions, explain Country 1 (10 points or 2 points per data point) and c. Using the above directions, explain Country 2 (10 points or 2 points per data point). 2. Using the countries you chose in Part A, perform a Google search and site a national comparative advantage each of those countries in the global market. Please reference your work! a. Country 1 (5 points) and b. Country 2 (5 points). 3. Explain the firms and the industry that create that comparative advantage. a. Country 1 (5 points) and b. Country 2 (5 points). Political Risk (22 points) 4. Follow the directions below. a. Go to the following World Bank webpage, http://info.worldbank.org/governance/wgi/index.aspx#countryReports, b. Click on “Interactive data access” c. Click the tab “Table View” d. Select your two countries and read the political risk report for your countries. e. Copy and paste the entire table into your project. (If your country is not available, choose another country.) f. Explain the six factors of the World Bank’s Worldwide Governance Indicators. (12 points) g. Explain the primary sources of political and legal risk for your countries. h. Explain Country 1’s scores (5 points) and i. Explain Country 2’s scores (5 points). BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Country Project Part B Rubric Names: Countries: 1. Trade and Investment a. Explain Country 1 in terms of 5 data b. Explain Country 2 in terms of 5 data 2. Comparative Advantage a. Explain Country 1 comparative advantage (CA) b. Explain Country 2 comparative advantage (CA) 3. Firms and Industries a. Country 1 - Firms and industry for comparative advantage b. Country 2 - Firms and industry for comparative advantage Possible Points 10 10 5 5 5 5 40 4. Country Risk f. Explain the 6 factors of the World Bank's Worldwide Governance Indicators (WGI) i. Explain Country 1’s scores j. Explain Country 2's scores 12 5 5 22 Failure to reference -7 Failure to insert graphs and tables -31 Up to one week late -7 After one week late -31 Failure to place names in the digital file -5 Part B: Political and Country Risk 62 BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Country Analysis Project: Part C With the countries you analyzed for Parts A and B, please answer the questions below and turn in to Canvas by Friday, November 30th, 2018 by 11:59EST. PLEASE NOTE: The countries you choose for Part A will be the countries you refer to through Parts A, B, and C. If, for some reason, information is not available for your country at the websites cited by a particular question, please choose another country to answer that question, and NOTIFY ME and MAKE NOTE in the Project of the CHANGE. This Project is worth 60 points. I will run the submissions through an anti-plagiarism software. Failure to reference the websites or any other research will result in a grade reduction of 3 points in your project score. Please include the graphs provided by the websites! Failure to do so will result in half the points being subtracted from your grade. Last but not least, please place all name of all group members (if applicable) inside the file. This makes it easier for me to grade and causes less confusion for you in the future. Failure to do this may result in points (-5) being subtracted from your grade. Economy (20 points) Using the two countries from Part A, go to globaledge.msu.edu You may also go to cia.gov Factbook pages to research your countries. Please make sure you include tables and graphs from your research for each country. 1. Describe the Economy. a. Describe the economy (using the CIA Factbook) for Country 1 (5 points) and from Globaledge, provide table for the following economic indicators: (5 points) i. Current Account Balance ii. Inflation iii. Manufacturing Value Added iv. GDP Growth v. GDP per capita, PPP b. Describe the economy (using the CIA Factbook) for Country 2 (5 points) and from Globaledge, provide table for the following economic indicators: (5 points) i. Current Account Balance ii. Inflation iii. Manufacturing Value Added iv. GDP Growth v. GDP per capita, PPP BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Infrastructure (20 points) 2. From Globaledge,, look up the following Infrastructure determinants for Countries A and B– a. mobile cellular subscriptions; b. Roads, total network; c. Rail lines; d. Air Transport; and e. Internet Users. Do not just supply this information in the form of tables and graphs, also explain why infrastructure is important to FDI. a. Country 1 – why is infrastructure important (5 points) and indicators tables and or graphs (5 points) b. Country 2 why is infrastructure important (5 points) and indicators tables and or graphs (5 points) HINT: In order to properly compare these numbers, you may want to scale these numbers per capita - divide each infrastructure indicator by population. The population is on the CIA Factbook. Investment Potential (20 points) 3. Overall, what is your group’s informed opinion as to how receptive your countries are to FDI? a. Which country, of the pair, is the most receptive? Provide a well-reasoned argument using the evidence presented in Projects Part A, Part B, the Economics and the Infrastructure parts of this project. b. Country 1 – well-reasoned argument (4 points), and data from Part A (2 points), Part B (2 points), and Part C (2 points) c. Country 2 well-reasoned argument (4 points), and data from Part A (2 points), Part B (2 points), and Part C (2 points) BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Country Project Part C Rubric Names: Countries: 1. Economy Describe Country 1 include tables and graphs Current Account Balance Inflation Manufacturing, Value Added GDP Growth GDP per capita, PPP Describe Country 2 - include tables and graphs include tables and graphs Current Account Balance Inflation Manufacturing, Value Added GDP Growth GDP per capita, PPP Possible Points 5 5 5 5 20 2. Infrastructure Country 1 Why is infrastructure important? Indicators: Mobile: Cellular Subscriptions Roads: total network Rail lines Air Transport Internet Users Country 2 Why is infrastructure important? Indicators: Mobile: Cellular Subscriptions Roads: total network Rail lines Air Transport Internet Users 5 5 5 5 20 3. Investment Potential Country 1 BUS 366: International Business: Country Analysis Project Country Project Part A: Due September 28th , 2018 by 11:59PM EST via Canvas Country Project Part B: Due October 26th , 2018 by 11:59PM EST via Canvas Country Project Part C: Due November 30th , 2018 by 11:59PM EST via Canvas NAME(S):_______________________________________________________________ Investment Potential Continued: Well-reasoned argument pro or con using data from 4 Part A 2 Part B 2 Part C 2 Country 2 Well-reasoned argument pro or con using data from 4 Part A 2 Part B 2 Part C 2 20 Failure to reference Failure to insert graphs and tables Up to one week late After one week late Failure to place names in the digital file -7 -31 -7 -31 -5 Total for Part C: Economy, Infrastructure, and Investment Potential 60 Fassi Fehri Mehdi, Ali Gari BUS 366 DR. Castater 11/18/2018 Country Analysis Project Part C: 1. Describe the Economy: i. Morocco (2017) Description of the economy: Morocco is an Open oriented market economy. “It relies heavily into its proximity with Europe to do trade. Key sectors of the economy include agriculture, tourism, aerospace, automotive, phosphates, textiles, apparel, and subcomponents. Morocco has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa.” ( https://www.cia.gov) ii. Current Account Balance: -3.85 Billion Dollars iii. Inflation: 0.755% (2017 est.) iv. Manufacturing Value Added: There is no Data entered for that one for Morocco v. GDP Growth: 4.1% vi. GDP per Capita PPP: 8,217.46 $ vii. Germany (2017) Description of the economy: Germany is “the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment. Germany benefits from a highly skilled labor force, but, like its Western European neighbors, faces significant demographic challenges to sustained longterm growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfaree system and necessitate structural reforms”.( https://www.cia.gov) viii. Current Account Balance: 297.118 Billion Dollars ix. x. xi. xii. Inflation: 1.738 % annual (2017 est.) Manufacturing Value Added: 20.664 % of GDP GDP Growth: 2.223 % GDP per Capita PPP: 50.638.89 $ 2. Infrastructure : Morocco: a. Communication in Morocco are interesting everyone has access to phone and the mobil data functions well. In the Cia website it is stated that Morocco “ good system composed of open-wire lines, cables, and microwave radio relay links; principal switching centers are Casablanca and Rabat; national network nearly 100% digital using fiber-optic links; improved rural service employs microwave radio relay; Internet available but expensive” (https://www.cia.gov). In that particular area Morocco is doing pretty good, they just need to ameliorate the data and communication relay in the rural areas so everyone has access to this technology. the total subscription is pretty high in the mobile cellular areas because everybody use mobile cellular nowadays there is no more fixed lines since people are more mobile too. The internet users in this country is about half of the population mainly because its kind of expensive too have good internet but It is definitely getting way better since there is new carriers that are bringing internet cheaper. Telephones - f ixed lines: total subscriptions: 2,046,390 (2017 est.) subscriptions per 100 inhabitants: 6 (2017 est.) country comparison to the world: 57 Telephones - mobile cellular: total subscriptions: 43,916,066 (2017 est.) subscriptions per 100 inhabitants: 129 (2017 est.) country comparison to the world: 32 In ter n et u s er s : total: 19,611,643 ( J ul y 2016 es t.) percent of population: 58.3% ( J ul y 2016 es t. • this data were retrieved from the ( https://www.cia.gov/library/publications/resources/theworld-factbook/geos/mo.html) b. Road and total networks: R ai l w ays : total: 2,067 k m ( 2014) standard gauge: 2,067 k m 1.435- m g aug e ( 1,022 k m el ec tr i fi ed ) ( 2014) country comparison to the world: 74 R o ad w ays total: 58,395 k m ( 2010) paved: 41,116 k m ( i n c l ud es 1,080 k m o f ex p r es s way s ) ( 2010) unpaved: 17,279 k m ( 2010) country comparison to the world: 74 Nati o n al ai r tr an s p o r t s ys tem : number of registered air carriers: 4 ( 2015) inventory of registered aircraft operated by air carriers: 65 ( 2015) annual passenger traffic on registered air carriers: 6,786,850 ( 2015) annual freight traffic on registered air carriers: 47,828,227 mt- k m ( 2015) • This data was retrieve from ( https://www.cia.gov/library/publications/resources/theworld-factbook/geos/mo.html). In our opinion for a country like Morocco the transportation system is decent and serve all the country you can from north to extreme south of Morocco either by train or by plane. The roadways are in good shape due to a high investment from the country in those areas. Moreover there is an international airport in each city of Morocco which help for the internal and external tourism. The highways serve every big and small city of Morocco which makes it easy to travel by car also. It is really important for Morocco to have these kinds of infrastructure since it is a country that rely heavily on tourism and having a functionate transportation system is the probably the key to have more tourism in the country. Also, it is important because Morocco use its transportation system for import and export so they invested heavily into new infrastructures. Germany: T el ep h o n es - f i xed l i n es : total subscriptions: 44.4 mi l l i o n ( 2017 es t.) subscriptions per 100 inhabitants: 55 ( 2017 es t.) country comparison to the world: 4 T el ep h o n es - m o b i l e c el l u l ar : total subscriptions: 106 mi l l i o n ( 2017 es t.) subscriptions per 100 inhabitants: 132 ( 2017 es t.) country comparison to the world: 15 In ter n et u s er s : total: 72,365,643 ( J ul y 2016 es t.) percent of population: 89.6% ( J ul y 2016 es t.) country comparison to the world: 8 • Those data were retrieved from (https://www.cia.gov/library/publications/resources/theworld-factbook/geos/gm.html). In that case we are here talking about Germany which is one of the most powerful and most developed country in the world. In terms of Mobile cellular they are doing really well since they have probably the top technology for mobile carrier and the top infrastructure that is all over the country. Internet users are 90 % of Germany which is just massive once again it is because they have a lot of different carriers. The internet is cheap since the infrastructure are perfect and it is heavily used too for their businesses too. Everything is pretty much connected to internet. Road and total networks: Nati o n al ai r tr an s p o r t s ys tem : number of registered air carriers: 20 ( 2015) inventory of registered aircraft operated by air carriers: 1,113 ( 2015) annual passenger traffic on registered air carriers: 115,540,886 ( 2015) annual freight traffic on registered air carriers: 6,985,007,915 mt- k m ( 2015) R ai l w ays : total: 33,590 k m ( 2015) standard gauge: 33,331 k m 1.435- m g aug e ( 19,973 k m el ec tr i fi ed ) ( 2015) narrow gauge: 220 k m 1.000- m g aug e ( 79 k m el ec tr i fi ed ) ( 2015) 15 0.900- m g aug e 24 0.750 - m g aug e country comparison to the world: 7 R o ad w ays : total: 645,000 k m ( 2010) paved: 645,000 k m ( i n c l ud es 12,800 k m o f ex p r es s way s ) ( 2010) note: i n c l ud es l o c al r o ad s country comparison to the world: 12 • This data was retrieve from ( https://www.cia.gov/library/publications/resources/theworld-factbook/geos/mo.html). Germany transportation system is at the top of wealthy nation. Every city has an international airport with really good service. Every part of Germany has roadways that are highly efficient to take and also highly efficient for business. It is pretty easy to move throughout the country because of it. Railways are serving every city of Germany and are the trains are highly technological. Within the cities there is a good transportation system so you do not really to use your personal car. Since the 2nd world war Germany invested massively into their infrastructure to make it easy for their people and also to attract investment because of that.
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