The Harvest Box Is An Australian Organic Foods Retailer

1649 WordsMay 4, 20177 Pages
As foreign investment and international trade continue to drive globalisation, many companies are excited by the prospect of entering international marketplaces. However, due to the unique nature of overseas marketplaces, it is oftentimes difficult to identify which nations will support business growth, and those who will not. As a result, many companies employ the global expertise of Ryan International Consulting (RIC), to assist in making these challenging decisions. One such company, Harvest Box, has expressed intent to expand into either Malaysia or the Philippine’s market. This report aims to determine which nation will best suit Harvest Box; based on a series of socioeconomic, political and business-related conclusions and, from…show more content…
The Philippines produces a similar annual GDP of approximately A$388.81B with growth, surpassing Malaysia, at 5.9% (World Bank, 2015). However, the Philippine economy involves itself less in international trading than Malaysia; reflected in a mere Current Account Balance of A$262M (CEIC, 2016). Whilst both economies seem very similar, Malaysia has less than one third the population of the Philippines (World Bank, 2016). This indicates, as illustrated by Graph 2.1, that Malaysia’s GDP per capita, GDP minus the effect of population, is significantly larger than the Philippines (Economist Intelligence Unit, 2017). Therefore, total economic efficiency and productivity in Malaysia is considerably higher than the Philippines; with a smaller population producing greater output. This high economic efficiency, which creates wealth and jobs, also increases levels of employment (CIA, 2017). This sizeable productivity showcased by Malaysia assures further growth and continuation of economic stability. Both nations have also reduced interest rates through monetary policy (Global Rates, 2017). This will likely lead to increased borrowing, investment and expenditure; stimulating the economy (Boundless, 2016). Malaysia is, hence, a more stable economy, with lower current and long-term risks involved for businesses looking to enter the market. RIC classifies Harvest Box
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