Manner. Political stability also will push the economic growth and production increased that’s providing a larger market and consumer power of citizens. As Manner provide a good environment for business. What’s more, Manner has a good relationship with the other countries in Asian. It means the main material imported from near countries will be easier and avoid tariffs. 3. Legal Environment 3. 1 Regulatory framework In Manner, it provides old age, disability and survivors, Sickness & Maternity and Work Injury for social security. U. S Social Security Administration 2010) 3. 2 Importers or exporters are required to register with the Export Import Registration Office under the Directorate of Trade, Ministry of Commerce as an enterprise permitted is under the FILL. (Manner’s NET 2010) Bribery payment is not allowed and discouraged in Manner. 3. 3 Labor laws The employees who worked at companies, trading centers or factories cannot works over 48 hours a week.
Then, the cost of labor is very low compared to other near countries as it is fixed on mutual arrangement between the employee and the employer. What’s more, the minimum working age is thirteen. . 4 Taxation laws Manner will levy income tax and profit tax on public consumption and domestic production. Import goods also will be taxed by Manner government such as chocolate or biscuit. (Manner’s NET 2010) 3. 5 Analysis Basically, all the law is protecting the business and workers in legal. Manner government hopes those things can attract more investment to come with legally expanding operation. . 0 Economic Environment 4. 1 Interest rates The current interest rate in Manner is 12% and the commercial bank prime lending rate is 17%. (The Central Intelligence Agency 2011) 4. 2 Inflation rate The inflation rate is 7. % in 2010. Compare to 2009, it is lower than 2010 as the inflation rate in 2009 was 1. 5% only (The Central Intelligence Agency 2011) 4. 3 Currency exchange rate The currency exchange rate in Manner is referring to 1 US dollar with 6. 4560 MGM (Manner Stay). It shows stable situation within half a year. (The Central Intelligence Agency 2011) 4. Free-market/command/mixed economies Manner still has lots of barriers to move toward free market. In a world ranking of index of Economic Freedom, Manner Just got rank 173 out of 200 countries. The source that Manner can get is only 38. 6 and it seems to be repressed. The Heritage Foundation 2011) 4. 5 Economic trends/forecasts By the GAP counting in Manner, the forecast of economic growth is predicted to increase 3%”4%. (The Central Intelligence Agency 2011) 4. 6 Tax policies There are five main taxes policies in Manner such as profit tax, income tax, commercial tax, lottery tax and stamp duties.
As the income tax for corporate is 30% , the income tax for individual is 20% of the total income and the commercial tax rate is around 5% to 30%. (Manner. Com 2011) 4. 7 Analysis High interest rate and high tax are the reasons to increase the capital of investment. The inflation rate and the currency exchange rate also show that the economic growth of Manner is increasing. It is difficult to entry the market and Manner cannot produce a free market for business as it is lots of barriers to avoid the investor coming. 5. 0 Socio-cultural Environment 5. Hypotheses Cultural Dimensions (Greet Hefted 2009) Manner Collectivism Vs.. Individualism Very high Relatively low Power Distance high low Uncertainty avoidance Time orientation Very low medium Quality Vs.. Quantity Medium 5. 2 Analysis In Collectivism Vs.. Individualism, it is relatively high and got around 85% in Australia ND Manner only got 51% that’s lower than Australia. A group works are good for Manner employees rather than having an individual works. In Power Distance, Australia is higher than Manner which got 31% and 25%.
It shows that the relationships are very well between managers and employees when Australia employees are less communications with their bosses. In Uncertainty avoidance, Australia is relatively low and got around 47% and Manner got nearly 90% that’s higher than Australia. They work flexible and freedom. In Time orientation, Manner is 45% that is relatively higher than Australia where it only got 28%. For the Manner employees, it is acceptable and fulfills the loyalty of social responsibility. In Quality Vs.. Quantity of life, for the index of Quality of Manner, it got only 23% and Australia got a higher percentage that is 45%.
Manner workers do not get a positive respect from employers. Affording more welfare is recommended to employers to keep motivate for working. 6. 0 Technological Environment 6. 1 Technological infrastructure As Manner absence the basic technological infrastructure in their countries, but they get help from SEAN and two powerful countries such as China and India. Manner also now gets ready to exhibit relative readiness in human resources, skills and well preparation for catching up the world-change. (Manner Info-Tech 2007)