ENTERING A ZAMBIAN MARKET
...oying staff. Natural resources -It is no point for Zambia to import copper because its copper mining industry is wealthy. Therefore the company can use their raw material to produce its product rather than exporting standard products in Zambia. „c Political Environment System of the government -It may reflect the way how the government prospect its own country economy. Most state owned industries have been sold to overseas investors; it can be good or bad. Political stability and continuity -Company would like to invest in a political stable country, because company can loss its businesses over night due to the change in political parties and it may also cause changes in regulation. Government involvement in business -Affecting the level of decision-making and management but Zambian government seems to have less involvement in foreign businesses. Attitude towards foreign business -This can affect the accessibility to the market, for instance, customs tariffs, import charges, on-tariff barriers, import regulations and so on. „c Economic Environment Economical growth: GNP, industrial sector -During recession or downward economy people are more likely to spend less that will have direct impact on company exporting goods to Zambia. -GNP is related to spending power and disposable incomes of people in Zambia. -Industrial sector will reflect the growth pattern of this sector. Currency, inflation rate, availability, controls, stability of exchange rate -Because trading with foreign country the company needs to consider how Zambian companies pay for the goods. If the company builds its factory in Zambia it needs to consider is there any law on sending out money back to home country. Balance of payments -Zambia imports goods more than exporting that can affect its ability to source foreign currency to pay for imports and caus...