Answer to Question #234439 in Marketing for Theresia Mbendeka

Question #234439

Discuss and analyze how political factors such,Corruption level, Tax policies,  Government stability/instability, Freedom of press, Government regulation and deregulation, Special tariffs, Political action committees, Government involvement in trade unions and agreements, Competition regulation, Voter participation rates involved in King Lager to penetrate in kwazulu-natal market

Expert's answer

The King lager brewery company must have considered investing in the KwaZulu-Natal market in South Africa because of their favorite political factors, for example in South Africa, the value-added tax in almost all products are lower compared to other countries such as Australia, United States, Brazil, and China among others. Furthermore, the inflation rate in KwaZulu-Natal has declined for the past ten years although it's still under national debate, the sustaining inflation rate attracted the king larger to invest in KwaZulu-Natal. According to the world bank records, the South African government's instability in teams of crime is still a worrying factor to investors even although there are some improvements recently. However, the South African government reports suggest that the government has attained economic stability which also attracted king lager into the market. The rigid and higher law and regulations in south African discourage other investors from investing in KwaZulu-Natal which to king lager acts as the opportunity to invest in the country without high competition.

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