(a) Drawing conclusions from socio-economic data. (12 marks)
Task: The below table shows socio-economic data of two fictitious countries. From the perspective of a business considering the possibility of undertaking business in these countries, consider what the data could mean and present three conclusions. Each conclusion should compare both countries using at least two variables. (4 marks per conclusion)
Note: You can relate each conclusion to any type of international business (eg. you can present a conclusion from the perspective of a business choosing a new export market, a business seeking an import source, a business choosing a location for FDI, etc). Each conclusion should be at least about 150 words but not more than 200 words.
Country Country A Country B
1. Population 1,266.88 million 17.65 million
2. Area 3.29 million km² 756,102 km²
3. GDP US$2.251 trillion $234.9 billion
4. GDP Per capita (PPP) US$ 6,700 US$ 24,000
5. Gini Coefficient .35 .51
6. Population below poverty line 21.9% 14.4%
7. % of Urban Population 32.7% 89.5%
8. Main Exports Vehicles, machinery, apparel, pharmaceutical products, petroleum products Fruit, copper, fish products, chemicals, paper & pulp, wine.
9. Main Imports Crude oil, iron & steel, plastics, fertilizer, machinery, chemicals Petroleum, chemicals, electrical & telecom. equipment, machinery, vehicles.
10. Inflation 5.2% 4.1%
11. Internet Users (% of Population) 26% 64.3%
12. UN Human Development Index (HDI) .624 .847
13. Adult literacy rate
14. Labour Force by Occupation 71.2%
47% agriculture, 22% industry, 31% services 97.5%
9.2% agriculture, 23.7% industry, 67.1% services
(b) Construct a timeline graph for percentage change in GDP. (3 marks)
Task: You will be informed regarding the two countries you are required to analyse for Assessment Item #2 (Country Analysis Report). Using the EIU database and Excel, construct a timeline graph of the % Change in GDP for these two countries for the years 2012 to 2022.
Note: The EIU Database is available through:
https://eiu-bvdep-com.ezp01.library.qut.edu.au/version-2017510/cgi/template.dll?product=101&user=ipaddress&dummy_forcingloginisapi=1
Search for the relevant information using the database, export the required data to Excel and construct a timeline graph. Give your graph a title, label both axes and include the source of your data
An example on how to reference your data source. The source of data is EIU (2017). Country X and Country Y: Selected series 2012 to 2022 [Datafile]. Retrieved from https://eiu-bvdep-com.ezp01.library.qut.edu.au/version-2016811/cgi//template.dll?product=101&user=ipaddress&dummy_forcinglogininisapi=1)
(c) Foreign market entry mode – licensing (5 marks)
Task: A successful small Australian firm that specialises in tech-based products is considering either to export its products to foreign markets or to license its technology to foreign businesses. Explain the meaning of licensing as a foreign market entry mode and compare the benefits and risks of licensing against exporting.
Note: This part should be at least about 200 words but not more than 250 words.
