Tuesday, May 5, 2020
International Business for Self Reliance and Political Stability
Question: Discuss about theInternational Business for Self Reliance and Political Stability. Answer: Environmental analysis of Indonesia: The analysis of environment of Indonesia at micro and macro is to provide investors with a brief overview of core fundamentals. This would assist in differentiating country for providing certain practicalities for the investment and business ventures such as exporting of NZ natural juice that is a small company situated in Hawkes Bay Napier. Indonesia is predicted to be the sixth largest economy in the world. Economy of Indonesia is on rise and is regarded as major destination for foreign direct investment. Distinct characteristics of country are coupled with self reliance, political stability and robust economic growth. In all the sectors, investment opportunities are ripe and a window of opportunity is represented for investors to participate in the market exhibiting strong fundamentals of the worlds growing region. Natural resources of country are diverse and among markets they are strategically positioned from which there is a high demand. Highly sought attributes is yielded by its unique topography. One of the alluring attributes for investors is the growing size of domestic consumer market of Indonesia. Consumer spending is fuelled by sustainable economic growth and relatively stable inflation and its young and working population (Forsgren Johanson, 2014). The export of juices and non alcoholic beverages to Indonesia has increased on a significant scale since year 2013. Value of export stood at $ US 8.1 million in year 2013 as compared to $ US 15 million in year 2016 (Setiawa Barrett, 2016). It is indicative of the fact that market that market of Indonesia is the best prospect industry for exporting juice. Indonesia is in enviable position of being able to reap the benefits of energy resources and its highly fertile soil and climate suits the cultivation of agricultural commodities that are of high value. There is a scope for increased output due vast availability of land. Among emerging market, natural resources of Indonesia make it a unique country for providing food and long-term energy for its burgeoning population (Utami et al., 2017). Political system continues to be in a work in progress and a series of coordinated region would be yield by the process of political maturation that will compliment their commercial strength and particular attributes. It is perceived that in coming decades, political system of Indonesia will continue to strengthen and investors would have confidence in stability of country. Vast population of country is set to grow to 288 million by year 2050 that will help in serving consumer market and a highly skilled productive capacity. All these factors would help New Zealand natural juice in exploring their juice business. However, some challenges are faced by country in securing business environment for sustainable economic growth and investors environment. Some of the issues that can be hurdle for investors are excessive bureaucracy and corruption issues. Furthermore, growth in gross domestic product of Indonesia is restrained by poor infrastructure and unqualified human resources (Wild et al., 2014). However, the aforesaid obstacles are being addressed by some steady steps taken by countrys democracy. References List: Forsgren, M., Johanson, J. (2014).Managing networks in international business. Routledge. Setiawan, W., Barrett, P. S. (2016). The built environment element of economic development in post conflict response in Indonesia.Procedia-Social and Behavioral Sciences,234, 478-487. Utami, C. W., Bernardus, D., Sintha, G. (2017). The Pattern Analysis of Family Business Succession: A Study on Medium Scale Family Business in Indonesia.European Research Studies,20(2), 461. Verbeke, A. (2013).International business strategy. Cambridge University Press. Wild, J. J., Wild, K. L., Han, J. C. (2014).International business. Pearson Education Limited.