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Report on Etheopia and New Opportunities

   

Added on  2020-05-01

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Running head: ETHEOPIA AND NEW OPPORTUNITIES ETHEOPIA AND NEW OPPORTUNITIESName of the Student:Name of the University:Author Note:
Report on Etheopia and New Opportunities_1

2ETHEOPIA AND NEW OPPORTUNITIESQuestion1.After the GDP increased with population growth, Ethiopian government followed themodel of state led development. It invested in power, telecommunications and transportation thatinstigated economic growth. It has taken initiatives to protect its local companies such as mediaand retail sector and promote manufacturing of pharmaceuticals sector. The government has alsoreserved financial sectors for domestic investment and state banks have hold most of the bankassets. Ethiopian government has attempted to attract the local manufacturers and encourageexport system that substitute import. Tax and customs exemptions have permitted the investorstransmute their capital as well as profit into dollar. Pros and cons: despite the fact that Ethiopian government has made policies to attract theprivate companies and foreign investors, they are facing competitions in the fields of achievinggovernment tenders, custom clearing and navigating government bureaucracy. The problem intransportation and telecommunications still continue. Frequent power cuts have infringed theproduction (Quelch, & Sunru, 2015). In spite the country provides a high supply of workforce,but skilled and trained labors are scarce as well as costly. Limited competition in market hasproved to be beneficial for the multinational companies but they do not have brand awarenessamong the consumers. The government’s policy to restrict the imported goods to domesticfactories has prevented the way to invest in Ethiopia. Building trust with customers is difficultand public sector corruption has been reported high which may affect investment.Quetion2:CareCo: The company has global recognition in manufacturing personal care products.Initially the company had entered the Ethiopian market through local agent. This method served
Report on Etheopia and New Opportunities_2

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