Political/ Legal Screening
Entry barriers
Botswana is a member of the Southern African Customs Union, (SACU), which unites it with South Africa, Lesotho, Namibia, and Swaziland in a customs free zone. With the exception of certain foodstuffs, import permits are not required for goods entering Botswana from the common customs area. SACU applies a common external tariff against goods entering from outside the customs union. Foreign-owned firms have the same investment opportunities as host country entities. (AABF , 2012)
Botswana and the United States entered into an Investment Guarantee Treaty soon after the country's independence. Botswana has mutual trade agreements governing the duty-free entry of goods with Malawi and Zimbabwe, in addition to membership, along with South Africa, Namibia, Swaziland and Lesotho, in the Southern African Customs Union (SACU). Other countries with bilateral trade agreements with Botswana based on most favored nation include China, Czech Republic, Korea, Romania, Russia, Slovakia, South Korea and Zambia. (AABF , 2012)
Profit renitence barriers
Botswana has no Foreign Exchange controls and offers free repatriation of profits and dividend thus it has an investment climate cut out as a manufacturer of high end quality textiles. This is ideal for the textile industry as the industry rely on imported raw materials. The Botswana-SACU membership allows duty free and quota free shipments of textiles to the largest market in the region, South Africa. (Department of Commerce, 2012)
Botswana has no foreign exchange controls or restrictions on business ownership and taxes are very low - 15% for corporations and 25% for individuals. They allow remittance and full repatriation of profits and dividends and offer...
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...ortunities Botswana NCTI and NIC Decent Work Country Programme For Botswana [viewed: 08 April 2014]
Sherrie Wenzel Botswana Facts Safariline, 2012, viewed 7 April 2014 from http://www.safarilinetravel.com/bots-facts.htm
Botswana Investors’ Handbook, 2013 ,pages 12-20, from http://www.bitc.co.bw/sites/default/files/Botswana%20Investors%20Handbook.pdf [accessed: 8 April 2014]
Botswana Tourism Organisation 2013 Welcome to Botswana available from http://www.botswanatourism.co.bw/welcome-botswana [accessed: 2014/04/07]
Anouk Zijlma Gaborone, Botswana Gaborone, Facts and Information about Botswana's Capital available from http://goafrica.about.com/od/africatraveltips/ig/Africa-s-Capital-Cities/Gaborone--Botswana-s-Capital.htm
[accessed: 2014/04/07]
Botswana Export Development and Investment Authority (BEDIA) Botswana Investment Guide(pg7) [2012] [viewed: 07 April 2014]
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Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
Profile of Exports, Imports and Trade Partners. Creative Commons Attribution-ShareAlike 3.0 Unported License, n.d. Web. 13 May 2014.
"Ghana." Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. Index of Economic Freedom, n.d. Web. 08 Apr. 2014. .
Textile production and consumption is an increasingly global affair as production continues to shift to developing countries. Developing countries have seen an explosion in the growth of their textile exports, and for many countries textiles are a significant portion of their total exports. In response to increasing competition from low-value imports from developing countries, industry leaders in developed countries have made significant capital investments in order to increase productivity and move into advanced market sectors.
Is the European Union or the Southern African custom union better in the way they set about import tariffs and why is the way they use them better?
Caroline Vutagwa. "CEO WEEKENDS:BOTSWANA FAKE PHONE DEALERS RISK 10 YEARS IN JAIL & OVER $200,000 IN FINES - See more at: http://techmoran.com/ceo-weekendsbotswana-tighten-up-on-counterfeit-and-unapproved-mobile-phone-s" http://techmoran.com/ceo-weekendsbotswana-tighten-up-on-counterfeit-and-unapproved-mobile-phone-sales/. TECH MORAN, Friday, August 23rd, 2013. Web. 21 Nov 2013.
Maun is facing operational challenges of locally owned tourism enterprises which is caused by dominance of foreign tourism enterprises. Almost 70 percent of tourism enterprises are owned by foreigners hence resulting into revenue leakage, low salaries and pressure on resources, the local community are facing poverty while foreign owned enterprises are growing ( hotels and lodges) stated by Mbaiwa (2006). The continuation of the domination of the foreign owned companies if not controlled could end up threatening the sustainability of the tourism industry in Botswana. There is need to explore ways in which local investors can be ?????
[5] Diamond Industry Annual Review, De Beers Signs New Angolan Agreement, [internet] Accessed on: 13th November 2005, http://www.pacweb.org/e/images/stories/documents/addendum%20angola%202005-english.pdf
..., authentic diamonds anymore. Diamond mining has supplied jobs over the years meaning that the people that have relied on mining for an income would be left jobless over time. If artificial diamonds replaced natural diamonds completely the African economy would suffer because diamond mining has been the country’s source of income for many years. Diamonds had helped to fund one of Botswana’s biggest HIV/AIDS programs that helped with the prevention and treatment of the diseases. ‘From a population of 1.6 million people, around 37% suffer from either HIV or AIDS.’
The movement particularly emphasizes on exports from developing countries to developed countries, with products such as handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers and gold. Moreover, coffee is one of the most widely traded goods in the world. For many developing countries, coffee trade is an important source of income. Producers can provide a better trading and improve terms of trade. Moreover, this allows producers to improve workers’ living environment and future life in general (De Pelsmacker, Driessen and Rayp, 2005).
Have you ever heard of Botswana? Well, it is a country in Africa. Most people have never heard of Botswana, just like most people do not know that Egypt is in Africa. Pretty interesting? I, myself, had never heard of Botswana until I was selected to spend six weeks on a missionary internship there. I also did not know that Egypt was in Africa until recently. I would not give up my experience in Botswana away for the world. That is not what I am here to tell you about, though. I would love to tell you all about the mission trip and my plans for going back for a two year stay; however, I would like to inform you about the country of Botswana. I would like to begin by telling you where Botswana is. We will then look at this country under South African rule, compared to the independent government of Botswana that now exists. I would also like to have you look at the people and their culture to sho3w you what kind of people they are, and how simply they live and still get along quite well. I hope you enjoy this informational page of a country that many people have never heard about, and maybe it will inspire you to at least make a visit to see if I am telling the truth.
The selling of secondhand clothing or ‘oboni wawu ’ in Ghana has only negative affected the country. Employment in textile and clothing has fallen by 80% between 1975 and the 2000s (Rodgers,2015). It seems strange that the selling of secondhand clothing can have such an effect on a country 's economy. Here in the U.S, everyone has bought secondhand clothing but at the same time the buying for the clothing hasn’t put a dent in the economy. It is almost parallel to what happened in the past, jobs disappeared in order find cheaper ways of making things. In the US, many clothing factories shut down or moved overseas leaving many unemployed and in Africa markets are selling used clothing in the effect many jobs have been lost in the clothing industry. The biggest difference, the clothing that we buy is brand new and no one has worn it whereas in Africa, they are buying the ratty, unwanted used clothing. "The long-term effect is that countries such as Malawi or Mozambique or Zambia can 't really establish or protect their own clothing industries if they are importing second-hand goods," says Andrew Brooks from King’s College (Kermeliotis,2013). The problem is there isn’t a way for the companies to compete with the second-hand trade especially if they come in at such a high volume and are sold cheaper. In order to protect their nation’s textile industries many African countries have banned the import of second hand clothing (Kermeliotis,2013). The clothing industries aren’t able to compete with the used clothing market because it is sold for
The international community have highlighted the benefits that efficient and effective trade in Africa could potentially hold; the G8 in 2005 (and again in...
Economic risks faced by companies that want to expand their business globally are exchange controls, local content laws, import restrictions, tax controls, price controls, and labor problems (Cateora, Gilly & Graham, 2011). These risks can be just as harmful, in some cases, as the political risks faced. As implied by its title, import restrictions are limitations placed on certain goods being shipped in from another country. “There are especially tight import restrictions on goods with a potential to be hazardous” (Dugger, 2016). Many restrictions are placed on imports in order to protect and promote the domestic market within the host country. Tax controls are put into place primarily to generate revenue and operating funds. Unfortunately, many companies that attempt to expand their business overseas experience unreasonably high taxes. Elevated tax rates can also be seen as a form of protectionism in efforts to deter threatening foreign companies from entering their market, thus allowing domestic companies to