Potential Location of a New Factory in Africa and an Insight Into the Ethical Trading Initiative

MKIB225 International Business

Potential Location Of A New Factory In AfricaAnd An Insight Into The Ethical Trading Initiative |

200775380

Contents

Assumptions 3

Intro 3

Country of choice and its Ranking 4

Opening a factory 4

Construction permits 5

Accessibility to electricity 5

Acquiring credit 6

Investor protection in Tunisia 6

Ease of Trade between borders 7

Enforcing contracts 7

The Political Environment in Tunisia 8

My Recommendations in relation to opening a factory in Tunisia 8

What is the Ethical Trading Initiative and how does it operate? 9

What is ethical trade? 9

My Recommendations 10

Bibliography 12

Assumptions

* We have a successful Credit History;

* We will need an educated workforce in order to work the machinery in our factory;

* We will need to import Tantalum, Coltan and Tungsten from The Democratic Republic of Congo;

* We may need to import materials from Europe; and

* We aim to lower costs at the expense of ethics.

Intro

The aim of this Portfolio is to identify a suitable location in Africa to situate our factory. My decision will be based upon information and evidence from the International Finance Report, “Doing Business in 2012” (The World Bank, 2012). It will go one to examine the Ethical Trading Initiative 2010, how it operates, and the implications for the supply chain of our company should we choose to follow it. I will give my recommendations at two points within this portfolio; once before examining the impact of the Ethical Trading Initiative, and once after with these considerations in place.

Country of choice and its Ranking

Through researching the International Finance Report “Doing Business in 2012” (The World Bank, 2012), it is apparent that there are few African countries in the upper quartile of “Economy Rankings”. The Economy Rankings in this report rank the 183 participating countries in order of ease to do business. Of the countries (in Africa) in the...