Comparative Global Business System

Question: Describe about the Comparative Global Business System. Answer: History The African continent is inspires the world in terms of civilization and extraction of human origin. Archeological research support the fact that development of mankind occurred in Africa. First time in Africa, when only proto-bacteria to dinosaur dwells special kind of Ape known as Australopithecines appeared walk on two legs. The existence of Neolithic rock carving makes a point of existence of hunting and gathering culture in the grassland of Sahara Dessert of North Africa. Interesting fact is that Africa started agriculture in 6000 B.C. the break from Africa to the wider world occurs 100,000 years ago when a group moves towards North Africa. Africa is the oldest and enduring landmass of the world (Shillington, 2012). Figure showing culture of ancient Africa source (Shillington, 2012) Economic status Africa has a wide difference in terms of economy. Parts of sub-Saharan Africe are in the lower rank in terms of Gross National Income it has GNI of $765 per person in a year. Ethiopia and Burundi have the lowly GNI of $90 of per person. Countries with middle income people such as Gabon and Botswana contain moderate income level. While, North Africa are in better position than Sub-Saharan where economics are stable along with trade and tourism is high (BBC NEWS, 2016). Figure showing different income in different parts of Africa source (BBC NEWS, 2016). Education The education of Africa is under crisis with 128 million school-aged children 17 million never even attending school. On that among 800, 00 students 213,000 failed in the end of school examination. Though Africa contributed 6% of its GDP in education but the quality of education is not there for every student. Childrens in most areas had to travel 30km to go their schools. The schools in Africa mostly lack quality teaching and proper structured process in learning. There are 11 official languages in South Africa but most often they are teach in English especially math and science. The rate of absenteeism is also more in African schools (Nishimura and Yamano, 2013). Figure showing level of education in South Africa source (Nishimura and Yamano, 2013) Political The African people face problems in relation with leadership. It became the main problem for its political instability. Political turmoil affects the growth, infrastructure as well industrialization in Africa. Mostly, the leaders faced nation-building along with the hold of political power. The growth of conflict, along with terrorism in North Africa and Middle East and political violence in province of East Africa which enables the rise of political instability. Since 2010, many countries experienced political risk in which Africa is one of them. Political instability became a block for companies of Africa. The political violence in Nigeria along with northeastern border Cameroon, Niger and Chad made thousands of people to lost their life. In the north Libya faced the civil war with General Khalifa and Haftar along with the Islamic groups like Ansar al-Sharia (Halpern, 2015). Figure showing political instability in Africa source (Halpern, 2015) Employment The education of Africa is in crisis the only way is the vocational training that they take most of the time. But, with competition employment with vocational training is not enough. South Africa leads the unemployment rate with 25% in 2015. The rate increased to 26.7% in March. The ratio increased within last three months comparing with the ratio of January which was 24.5%. Since 2000, South Africa lowest unemployment rate was 21.50%. The reason for such rate in unemployment is because of legacy of apartheid, crisis in education and training, weaker in demand for labor and lack of entrepreneurial interest. Along with that increase rate of crime is also the reason for high unemployment rate (Anyanwu, 2013). Figure showing South Africa unemployment rate Source (Anyanwu, 2013). Infrastructure Africa has a poor infrastructure, though the President of South of Africa planed to spend $97 billion on infrastructure over the next three years. The concentration on infrastructure is to access return on certain investments. Africa suffers from low level of productivity in agriculture with constant famines. Rural infrastructure can be explained as poor in terms of transportation, irrigation, energy and telecommunication. The given study explains that its infrastructure deficit accumulates as a barrier for the growth of Africa. While, some estimates puts on the budget of Nigeria alone with $15 billion per year. The African Bank issued $40 billion bond for the development of its infrastructure (Herbst, 2014). Figure showing Africas infrastructure in comparison with the needs Source (Herbst, 2014) Development Rate The growth of Africa has slowed down to a measurable extent coming to 3.0% in 2015 from 4.5% in 2014. Among these years the weakest pace is from 2009. Per capita growth has slowed down weighted down by the growth of population. The price of oil, gas minerals and metals has force to lower to a great extent. Africa being the leader of exporter deeply affected from the falling price of commodities. It gives pressure to the current account as well as fiscal balance. Rising violence and the conflicts further hampers the development of Africa. The cost of doing business in Africa in short hampers the growth and productivity level (Cammett, 2013). Figure showing the GDP growth of Africa and Asia Source (Cammett, 2013) Worldwide raking of Africa South Africa positioned as 53rd in the most spirited country out of 148 countries reviewed in 2013/2014 in the competitiveness Index World Economic Forums Global. Global growth currently measures 3.1% in 2015 which is projected to grow 3.6% in 2017. The Ivory Coast Africa is the fastest growing economy. The West African nations are expected to grow on 8.5% this year (Hardoy et al., 2013). Figure showing world GDP Source ( Hardoy et al., 2013) Export Import Botswana and South Africa are major exporting countries of the Africa. South Africa is one the prime manufacturer in gold and diamonds. The nation consists of a well defined system in law. The key exporters of African nation are the palm oil, oil, gold and diamond, timber, cocoa, and precious metals. Nigeria is the worlds largest oil producer as it produces 3.2 million barrels per day. Sudan, Equatorial Guinea and Angola also exports oil to other countries. African mainly imports medical supplies and food. Other than that they import chemicals, petroleum products, scientific instruments, machinery and equipment (A Turning Point for Agricultural Exports to Sub-Saharan Africa, 2016). Figure showing Sub-Saharan Africa agricultural imports 2014 source (A Turning Point for Agricultural Exports to Sub-Saharan Africa, 2016) Reference List: BBC NEWS. (2016).News.bbc.co.uk. Retrieved 19 May 2016. Shillington, K. (2012).History of Africa. Palgrave Macmillan. Nishimura, M. and Yamano, T., 2013. Emerging private education in Africa: determinants of school choice in rural Kenya.World Development,43, pp.266-275. Halpern, M. (2015).Politics of Social Change: In the Middle East and North Africa. Princeton University Press. Anyanwu, J. C. (2013). Characteristics and macroeconomic determinants of youth employment in Africa.African Development Review,25(2), 107-129. Herbst, J. (2014).States and power in Africa. Princeton University Press. Cammett, M. (2013). Development and Underdevelopment in the Middle East and North Africa. Hardoy, J.E., Mitlin, D. and Satterthwaite, D., 2013.Environmental problems in an urbanizing world: finding solutions in cities in Africa, Asia and Latin America. Routledge.