Lecturer: Huynh Trung Dung
Name: Tran Van Lau
Student ID: S3255155
RMIT International University Vietnam
Bachelor of Commerce Program
Assignment Cover Page
Subject Code: | BUSM3311 |
Subject Name: | International Business |
Location & Campus (SGS or HN) where you study: | RMIT Vietnam |
Title of Assignment: | Assignment 2 |
Student name: | Tran Van Lau |
Student Number: | S3255155 |
Teachers Name: | Huynh Trung Dung |
Group Number: | 4 |
Assignment due date: | 20/08/2012 |
Date of Submission: | 20/08/2012 |
Number of pages including this one: | 28 |
Word Count: | 2500 |
Table of Contents
I. COUNTRY OVERVIEW 5
1. ...view middle of the document...
4 REVENUE ESTIMATION 26
X. REFERENCES 27
Ghana (Republic of Ghana) located in West Africa. It is bordered by Burkina Faso, Gulf of Guinea, Cote d’Ivoire and Togo. Accra is capital and largest city.
* Geographic coordinates: 800 N, 200 W
* Total: 239,460 km2
* Land: 230,940 km2
* Water: 8,520 km2
* Coastline: 539 km
* Climate: tropical; warm and dry in the southeast coast; humid in southwest; hot and dry in north
2. SOCIAL CONDITIONS
2.1 . Population
The population of Ghana increases rapidly and rice is a main daily food; so it is predictable the demand for rice will increase significantly along with the rise of population. This is an opportunity for Angimex to raise sales.
Figure: Adapted from Index Mundi
2.2 . Labor participation rate (% of total population ages 15+)
Labor participation rate is over 60% and remained constant 2006-2010 (WorldBank 2011) that provides a large human resource (both skilled and unskilled worker) at relatively low rates. The minimum wage is GH¢3.73 Ghana cedis (approximately US$2.49) per day. These make Ghana more attractive to foreign investment.
Figure: Adapted from WorldBank 2011
3. ECONOMICS CONDITIONS
Ghana is a potential market for investment
First, GDP of Ghana rises gradually from 2007 to 2012 (from 24.8 to 42.1 billion $US). Although real GDP growth fluctuates among years which might be caused by changes in inflation, it is still positive over the years. This indicates people in Ghana not losing their purchasing power.
Adapted from Department of Affairs and Trade of the Australian Government (2011)
Second, according to Tawiah (2011), Ghana is the World’s fastest growing economy in 2011 (20.146%). Besides, Ghana’s has one of the highest GDP per capita in West Africa (Trading Economics 2011).GDP per capita increase from $2600 in 2009 to $3100 in 2011 (CIA World Factbook 2012).
Next, though agriculture contributes 28.3% to GDP, rice is not main product. Local production of rice is only 30% (Basiru, A 2009) but Ghana demands for 1.65 million tons annually by 2015. Hence, imported rice would rise in further years.
4. LEGAL CONDITIONS
Ghana is very open for foreign investments. Hundred per cent (100%) foreign ownership is permitted. Mercuric medicated soap, toxic waste or contaminated goods are prohibited.
* Standard rate of duty for rice: 20%.
* Value Added Tax (VAT): 12.5%
* Inspection fee: 1%
* Ghana custom network: 0.4%
b. Method of payment
Letters of Credit (LC) is generally used as a method in the payment of imported goods.
c. Special requirements
* All food products imported, advertised, sold or distributed in Ghana must first be registered with the Food and Drugs Board under Section 18 and 25 of the Food and Drugs law 1992
* Imported foods are required to be clearly marked or labelled (The General...