a. From an examination of the country data for the Republic of Serendib, briefly discuss four (4) conclusions you can draw for firms thinking of doing business in that country. Each conclusion should be 100-150 words. (8 marks)

Population density
Population density is referred to the number of people per sq km(square kilometer). Therefore, there would be many benefits if the high density area is capital cities. Examples of the benefits would be distribution cost will be lower as well as less traveling is required. Aside from that, high density area will provide high rate of promoting the product to large number of consumers. The population density of the Republic of Serendib consist of 34 million people living within the area of 285,610 sq km , with only 30% being Urban and 70& being Rural. Based on these factors, it is concluded that the population density of the republic of Serendib is high.

Adult literacy rate
Adult literacy rate is referred to the %( percentage) of the population being able to read and write at the age of 15 or above. With high rate of literacy in a country will greatly improve the effects of visual advertisings such as billboards or newspapers. Alongside with the high density of the population and high rate of literacy will ensure the product will be well known by the consumers. The adult literacy rate of the Republic of Serendib is 92% and comparing with Australia with 99% according to CIA World Factbook(2012) which is high as 92% of the population will be able understand advertising on billboards or newspapers.

Gross Domestic Product (GDP)
The definition of GDP is the market value of the goods and services produced by the country during a period . The GNP per capita (PPP) of the Republic of Serendib is US$ 14,580 per annum or US$ 280 per week. In contrast, the GNP of Australia was US$ 38,210 and the GNP of United States was US$ 49,655 according to The World Bank(2012). This concludes that, the Republic of Serendib have on average low income according the GNP hence their purchasing power will be lower. This will mean the majority of the population will prioritize on spending on food and shelters instead of luxury items.

Import restriction
The Republic of Serendib may introduce import restrictions. The reason for this is due to the Total Export Volume being US$ 8.9 Billion is lower than the Total Import Volume being US$ 9.1 Billion. Therefore, in order for the country to prevent the loss of money, import restrictions may be introduced to control the import rate. Based on this information, it is concluded that doing business that requires the products to be imported from elsewhere will be problematic. However, introducing services that may improve the country’s export productions may be welcomed.

b. Using Excel, construct a Timeline Graph for % Change in GDP for Mexico and Brazil from 2010 to 2016. Label both axes of your graph, give the graph a title and add the source of your data. If you are a new user of EIU, there are instructions on Blackboard. (2 marks)

EIU Country Data (2013).

Reference List:
CIA World Factbook. (2012). The World Factbook:Literacy. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html#136

EIU CountryData. (2013). EIU DataServices. Retrieved from https://ezpauth.library.qut.edu.au/secure/ticket/index.php?a=generateticket&o=ticket&url=http%3a%2f%2fcountrydata.bvdep.com%2fip

The World Bank. (2012). GDP per capita, PPP (Current international $). Retrieved from http://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?order=wbapi_data_value_2012+wbapi_data_value+wbapi_data_value-last&sort=desc