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rome | Why don't multinational corporations invest or involve work force in africa ? |
I mean africa were not that different years..now that those corporations invest in asian...the continent is growing in business ..soon or later the remaining continent will be africa...what do you think ?? globalization is spreading like a virus :) |
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Kevin J Davis
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Because they don't own those governments yet like they do the rest of the world |
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Soviet Sunrise
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Globalization is like a virus, eh? Well, know what else is a virus?
HIV |
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Chris A
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We tried that a couple hundred years ago and we're still getting bitched at for it. |
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Kyllleee
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Africa has multiple reasons that make it an inviable choice for MNC's.
- Political instability - Means that businesses and workers are subject to political changes such as coupes and radical changes in leadership. As a result of this businesses are hesitant to inject funds into African countries as a result of feasibility studies.
- Lack of Growth due to failure to embrace Globalization - Many countries within Africa have rejected foreigners to a point where rebels have expelled foreigners and even killed them.
- Low HDI - Poor medical care means that many inhabitants of Africa are at higher risk of contracting diseases such as HIV and Malaria.
- High inflation - Countries such as Zimbabwe have as high as 1600% inflation, and the common phrase used is that "The price of a brick for a house today is the price of a house 10 years ago".
- Low skilled workers - Under skilled workers (and climatic conditions) have forced a large amount of Africa's land to be rendered virtually infertile. |
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matt
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political instability is the generalized short answer to that question. |
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VidaLoca Libertarian
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Africa is the absolute worst place to invest!! It is the most corrupt and most politically unstable region in the world. To be honest, since they have nothing there but overpopulation, it won't happen in my lifetime. But, the Bill Gates foundation may make a liar out of me. |
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K.C.
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i visited zimbabwe when i was 13 years old. the exchange rate then was 28 to 1 us dollars. look at it now. their money has devaluated soo much they have 250,000, and up to 1 million dollar bills. one piece of paper!!!! dollar bills in the quarter, half and million ammounts!!????mugabe ran off or killed all the white business owners and gave their establishments to the indigeonus people. what affect did that have? well now the world wont trade with them, and their country is in the worst state it has ever been in history. the revolutionary man, whom liberated this country, has become a fascist, evil dictator. bob marley was so happy when the country was liberated by robert mugabe, he made a song about it and went there to play live in front of the world.
the main reason people dont invest, is because for the most part it is still a third world continent. there is too much genocide. revolution after revolution, war after war. some have never ended in over a hundred years. we invest allright, so do the chinese, and the russians. we supply them with weapons, and all they do is keep killing eacother. greed, corruption, random crimes murder genocide, and aids are rampant. to say the least, its a very risky investment. |
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AndyPandy
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There is a large bank in Africa, growing, and I forget the name, but a lot of the answers are correct with saying political instability. I think Africa has potential, but the politics need to really stabilize.
I recently saw a documentary on women in the Congo. I have never seen so much sadness and cruelty in my life, and in such a pretty place. I just pray for these women/children, and even other good people, and felt so helpless. Just be happy you are not there, really. Death and rape, is such an ordinary thing there. I just cannot believe that even though people try to do something about it, doctors and other leaders, get killed by the local guerillas and politicians.
I also ask myself, what would you do to help such a situation? What do you think the world should do? |
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sandison
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Probaly the biggest reason is the instability of the politics on the continent. |
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slaps
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It would seem to make sense. There are several countries there with English as a native language and low salaries which could make a business profitable. The political upheaval, however, and lack of serious internal business structure means that such ventures all fail.
This is the problem. People invest everywhere. Some of those investments do well, and so then people invest more in those places. No one randomly thinks "Hey, Sudan or South Korea, flip a coin, drop 20 billion dollars on the winner"
Investments in Africa are rarely profitable. Investments in Asia often are. |
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balshalk
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Most of the new gold is mined out of ores in Africa real interesting stuff 5 tons of ore is refined to produced 10 ounces of pure gold |
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Bert IV
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USA! USA! USA! |
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Mike McGrath
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http://answers.yahoo.com/question/index?qid=20080929010523AAc8ijN |
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