The prospect of Direct Investment in South Africa and Japan

Introduction

With the rapid development of Australian tourism industry, as Australia¡¯s only remaining grand hotel with 140 years history, our business increased 20 percent over the last 5 years and has been a leading hotel for decades. At the same time, Australian local market has trended to be saturation. If we want to keep and surmount this growing tendency, expanding overseas markets is the best choice for the company. South Africa and Japan were selected as the destinations for our future investment and setting up our branches. The purpose of this study is to prospect the direct investment conditions and weigh the advantages and disadvantages of these two destinations.

Some business essentials will be used for evaluation. According to Porter¡¯s theory of competitive advantage, a success in international business depends on four basic elements and two additional variables. This essay will analyze the FDI environment in South Africa and Japan from these basic aspects.

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