Regulation South Africas government announced plans in 2012 to spend a R3.

.2 trillion (US$369 billion) on infrastructure developments from 2013-2016. This should boost South Africas trading potential further. South Africas investment laws and treatment of foreign investors are generally considered to be good and on a par with how it treats domestic investors. There are restrictions on borrowing for non-domestic investors however.

Economy 2008 _ 2009 recession, now looks like stable growth for the rest of the decade Largest economy in sub Saharan Africa Forecasted average annual GDP 2012 _ 2020 is 3.3% per annum South Africa is the highest ranked Sub-Saharan African country in Doing Business 2013 infrastructure ranking (Doing Business Rankings) It scores 150th in getting electricity because electricity is serious problem in African markets Ranked 3rd in financial market development and 25th in financial market size. Stage of business cycle Impact of globalization 52nd out of 144 nations in the 2012-2013 Global Competitiveness Index, making it the highest ranked nation in Sub-Saharan Africa

Labor costs Social Population growth rate In 2011, 24.9% of the economically active population were unemployed compared to 25.5% in 2006. The number has gradually crept back up since the 2009 recession to due to spillover effects from the reduction in output in 2009. Youth unemployment is a particular problem, with 24.9% of the total unemployed population aged 20-24 in 2011. Population health education and social mobility The adult literacy rate has been gradually increasing from 2006-2011, from 87.6% of the population aged 15+ to 91.0% as South Africa has invested heavily in its educational system. Health and primary education levels in South Africa weigh it down. It ranked 132nd on the doing business report by the World Bank. Higher education and training levels were also low (84th) Levels of educational attainment remain low (target of new govt. policy) Gini Index is 63.6%. A score of 0% represents perfect equality and 100% is total inequality. Hence South Africa has a problem with social inequality and an unequal distribution of income across the country. Likely changes in economic environment

Political

Tax policy total tax on profits 33.3% Government type and stability Changes in political environment

Regulation and de regulation trends Levels of corruption. It ranked 64th out of 183 countries in Transparency Internationals Corruption Perceptions Index ranking in 2011, and was the seventh best placed country in Sub-Saharan Africa South Africa has fallen from 54th out of 178 nations in 2010, due to the corruption that is considered rife in the granting of government contracts, particularly with regards to procurement. Both violent and white collar crime, remain a major concern in South Africa and impact its business environment. In 2001, a National Anti-Corruption Forum (NACF) was established to combat corruption and since then a number of anti-corruption measures have taken place. The National Anti-Corruption Hotline established in 2004 is only one example.

Technological Research and development activity Total expenditure in South Africa on research and development (R&D) was R27.5 billion (US$3.8

billion) in 2011, up from R16.5 billion (US$2.4 billion) in 2006, a real growth rate of 21.8% over the period. Despite this growth in expenditure on R&D, expenditure on R&D as a percentage of GDP has remained constant at 0.9% for every year in the period. This is relatively higher than South Africas neighbours; recent estimates from the World Bank put Nigerias R&D expenditure at 0.2% of GDP in 2007.

Impact of emerging technologies Impact of technology transfer Web

internet uptake is increasing but its still low

Life style choices and attitudes toward socio cultural changes Internet usage in South Africa has experienced rapid growth in recent years, only 7.6% of the

population used the Internet in 2006 but this figure had risen to 21.0% by 2011. Mobile subscriptions have also experienced huge increases in recent years, rising from 0.8 per capita in 2006 to 1.3 per capita in 2011.

In 2012 the government increased Internet access through the state-owned telecommunications firm Sentech by constructing a National Wireless Broadband Network especially in rural areas The Networked Readiness Index (NRI) measures the propensity for countries to exploit the opportunities offered by information and communications technology. South Africas Networked Readiness Index ranking fell from 37th out of 115 countries in 2006, to 72nd out of 142 countries in 2012. The drop is attributed to the shortage of ICT skills in the nation. It still ranks higher than Kenya, at 93rd in 2012, and Nigeria at 112th. South Africa is a leading Information

Communications Technology (ICT) market in Africa and is making great strides in developing its infrastructure in this area.

Using PEST analysis examine whether International Business activities [International Trade and Foreign Direct Investment] has increased or decreased in the past 10 years. Has International Business contributed towards the economic development/ GDP growth of the country?

List the Main Economic Activities of the country List the Main Export Industries of the country Identify the Main Companies involved in generating Export Turnover

What role the Government has played in enhancing the International Competitiveness of its firms and Industries?