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MNB3702 ASSIGNEMNT 2 Generic PMT

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MNB3702 ASSIGNEMNT 2 Generic PMT

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September 2, 2025
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Written in
2025/2026
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MNB3702 ASSIGNMENT 2 2025




DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE REPORT IS NOT
PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE SOLUTION
TO THE TASK CONSISTENT WITH THEORY OF MNB3702. THIS REPORT IS INTENDED TO
ASSIST STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT, AND IN NO CASE
THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE THIS WILL BE A GOOD
STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF PROFESSIONAL PRIVATE
TUTORS WHO ARE EXPERTS IN THE FIELD, AND IT WAS PREPARED USING VARIOUS
SOURCES. ANY SIMILARITY WITH ANY EXISTING THEORY OR DISCUSSION BY OTHER
AUTHORS IS EXCUSED. THE AUTHORS HOWEVER DO NOT CLAIM MONOPOLY TO
KNOWLEDGE HENCE MODIFICATION OF THE ANSWERS CONTAINED IN THIS
FRAMEWORK MAY NOT BE PROHIBITED AS IT CONTRIBUTES TO EXPANSION OF
KNOWLEDGE. FOR ANY FURTHER GUIDELINE ABOUT THE INFORMATION CONTAINED
HERE AND THE MODULE IN GENERAL, CONTACT PASSMATE TUTORIALS.

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, MNB3702 ASSIGNMENT 2 2025




1. INTRODUCTION

This analysis focuses on Rand York Castings (PTY) LTD, a South African small and
medium enterprise that is involved in the manufacturing of automotive products
and sees expansion into Kenya as the host country. The analysis will critically
examine key drivers of this expansion, including trade agreements' contribution
towards facilitation of entry into the market, export-led growth prospects, and
application of strategic models of expansion such as the Uppsala Model. Also, the
study will critically examine institutional constraints such as political conditions,
cultural variations, and governance challenges that may affect competitiveness
within Kenya's market.

2. TRADE AGREEMENTS

South African SME automotive producer Rand York Castings (PTY) LTD can benefit
hugely from the available trade agreements when exporting to Kenya. One of the most
significant agreements that facilitate trade between the two countries is the African
Continental Free Trade Area (AfCFTA), which went into effect in 2021 and aims at creating
a single market for goods and services across the continent. AfCFTA boosts intra-African
trade by removing tariffs on approximately 90% of the goods traded within Africa,
streamlines customs procedures, and addresses non-tariff barriers to trade such as
burdensome documentation, import quotas, and discriminatory practices (Peng and
Meyer, 2019; 2023). With this agreement, Rand York Castings is in a position to export
auto parts and assembled units to Kenya at reduced costs and improved competitiveness,
aligned with the company's growth ambitions.

In addition, both South Africa and Kenya are members of the Southern African
Development Community (SADC) – Eastern and Southern African (ESA) trade
arrangements, which facilitate preferential access to goods produced within member
states. These agreements provide preferential tariff rates, allowing South African
automotive exports to enter Kenya at lower tariffs than products from non-member

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