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Country Selection and Initial Analysis - Essay Example

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Market Entry The country that I have chosen is Morocco, which a Muslim majority country from Africa with population of around 32 million. I have chosen wheat as the product to be introduced in Morocco because Morocco is the 10th largest importer of grains in the world (EW Report; Reuters Africa, 2010)…
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Country Selection and Initial Analysis
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Country Selection and Initial Analysis

Download file to see previous pages... The services sector has the largest contribution of 51% approximately (estimated 2010). The population growth rate is just over 1%, which should be viewed as reasonably well for a Muslim majority emerging nation. The currency is known as Moroccan Dirham (MAD) that fluctuates against US dollar because of changes in global economy. However, the exchange rate prevails between 8 – 9 Dirham / US dollar at present. The GDP per capita was around $4,900 according to 2010 statistics (CIA Fact Book, 2010) It should also be highlighted that the recent floods in Morocco damaged its agricultural crops as the area under cultivation reduced by significant 25 – 30%. As a result, the production of wheat, barley, vegetables and other grains reduced considerably whereas the demand increased due to rise in population. Nonetheless, the government authorities were left with no other option but to increase imports from self-sufficient nations so that they could stabilize wheat prices across Morocco (Reuters Africa, 2010). It should be noted that domestic wheat consumption in Morocco has been estimated to be nearly 8.3 million tons and the shortages resulted in 47% hike in wheat prices (Weisenthal, 2011). The price surge was mainly the outcome of shortage amid price inelastic demand of food products as they are necessities. ...Download file to see next pagesRead More
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