,Table of Contents
Introduction and Background.......................................................................................................... 2
QUESTION 1................................................................................................................................ 2
Impact of Globalisation on African economies. The case of South Africa ............................................ 2
QUESTION 2................................................................................................................................ 6
Risks and Opportunities of Doing Business in South Africa, Considering its Political Economy ............. 6
QUESTION 3.............................................................................................................................. 11
Challenges Hindering Africa’s Transition Toward Market-Based Economic Systems ......................... 11
QUESTION 4.............................................................................................................................. 16
Multinational's Ethical Challenge in South Africa ............................................................................ 16
Conclusion ................................................................................................................................. 22
References ................................................................................................................................. 22
1
, Introduction and Background
South Africa is a good country case study for examining international business in Africa as it is a nation
with sophisticated financial markets, regional trading relationships and significant natural resources and
a broad private sector, but with high levels of unemployment and inequality, weak infrastructure and poor
governance. This assignment considers four related issues, mainly drawing on Hill’s international
business theory. First, it considers the benefits and costs of globalisation in Africa, focusing on South
Africa. Second, it identifies the opportunities and threats in the political-economy of South Africa. Third,
it asses the challenges Africa faces in market transition. Finally, it presents an ethical challenge for a
multinational enterprise in South Africa.
QUESTION 1
Impact of Globalisation on African economies. The case of South Africa
Introduction
African economies have benefited from globalisation through increased trade, foreign direct investment,
knowledge and global value chains. South Africa is a case study as it has transitioned from being an
isolated economy under apartheid to greater globalisation. This has opened up export, technology, digital
and multinational enterprise opportunities. But it has also put it at risk of import competition, capital
outflows, deindustrialisation, job losses and inequitable access to world markets. Using Hill's theory of
globalisation, this question critically explores the benefits and costs of globalisation in South Africa's
economy.
Globalisation
Hill (2023) defines globalisation in two related processes. The first process is the globalisation of markets,
where domestic markets increase their interconnectedness through trade and investment flows,
technology and similar consumption patterns. The second process is the globalisation of production,
where production activities are spread across the world to access low cost inputs, labour and technology,
strategic markets and proximity to other production facilities. This theory applies to South Africa as it
2
Introduction and Background.......................................................................................................... 2
QUESTION 1................................................................................................................................ 2
Impact of Globalisation on African economies. The case of South Africa ............................................ 2
QUESTION 2................................................................................................................................ 6
Risks and Opportunities of Doing Business in South Africa, Considering its Political Economy ............. 6
QUESTION 3.............................................................................................................................. 11
Challenges Hindering Africa’s Transition Toward Market-Based Economic Systems ......................... 11
QUESTION 4.............................................................................................................................. 16
Multinational's Ethical Challenge in South Africa ............................................................................ 16
Conclusion ................................................................................................................................. 22
References ................................................................................................................................. 22
1
, Introduction and Background
South Africa is a good country case study for examining international business in Africa as it is a nation
with sophisticated financial markets, regional trading relationships and significant natural resources and
a broad private sector, but with high levels of unemployment and inequality, weak infrastructure and poor
governance. This assignment considers four related issues, mainly drawing on Hill’s international
business theory. First, it considers the benefits and costs of globalisation in Africa, focusing on South
Africa. Second, it identifies the opportunities and threats in the political-economy of South Africa. Third,
it asses the challenges Africa faces in market transition. Finally, it presents an ethical challenge for a
multinational enterprise in South Africa.
QUESTION 1
Impact of Globalisation on African economies. The case of South Africa
Introduction
African economies have benefited from globalisation through increased trade, foreign direct investment,
knowledge and global value chains. South Africa is a case study as it has transitioned from being an
isolated economy under apartheid to greater globalisation. This has opened up export, technology, digital
and multinational enterprise opportunities. But it has also put it at risk of import competition, capital
outflows, deindustrialisation, job losses and inequitable access to world markets. Using Hill's theory of
globalisation, this question critically explores the benefits and costs of globalisation in South Africa's
economy.
Globalisation
Hill (2023) defines globalisation in two related processes. The first process is the globalisation of markets,
where domestic markets increase their interconnectedness through trade and investment flows,
technology and similar consumption patterns. The second process is the globalisation of production,
where production activities are spread across the world to access low cost inputs, labour and technology,
strategic markets and proximity to other production facilities. This theory applies to South Africa as it
2
