marketing assignment

Risk Comparison

Next set up location for Eazzy Inc

Company Description

Eazzy Inc is a technological company situated in America with its headquarters in California. The company develops designs and sells online services and consumer electronics. The company has been manufacturing hardware that include Smartphone, tablets, iphone and smart watches. The company provides online services that include web browser, productivity suites and iWork creativity. The company has been recognized in the host country as one of the best mobile deserve manufacturer. It has also stood out among its competitors for its fair prices that it offers to its clients. Eazzy Inc. has been in business since it was founded in the year 2000.

Eazzy Mission Statement: The mission of Eazzy Inc. is to design the best mobile devices as well as create the best software I the world. The company’s mission is also to create quality products at affordable prices to ensure people from all economical rankings are able to afford the company products.

Eazzy Inc Vision Statement: Our Company believes in making awesome products hence its always innovating better products. We believe in affordability and availability of quality hence we work on being on all level markets. The company has only focused on few products to ensure it gives quality to the consumers. We work on giving our consumers the best and therefore we always take criticism positively and work on changing for better.

Singapore’s Major Trade

Singapore gets most of its income from foreign trading. The major trade in Singapore is from equipment and machinery with the greatest percentage of 68% being from electronics. Besides the machineries, Singapore exports chemical products, fuel as well as miscellaneous manufactures. Among the most recognized exports from Singapore are integrated circuits, refined petroleum, Oxygen Amino Compounds, integrated Circuits and packaged Medicaments (CIA).

Singapore’s report rankings across the board and how it got to its current position.

Singapore has been ranked as the number one location with the most excellent investment prospective. Singapore has also been assigned by the World Bank as the easiest location of conducting business. This is as a result of good administration within the country. In this country, it is easy to register a company due to the simplified process of setting a business and registering for taxation which is done through filling an online form. Other forms like those of new work safety, health regulations and construction permit can also be accessed through online. Additionally, this countries registration of property has been made easy through improved computerized systems (Hill, 2015).

Singapore has also been ranked highest for lack of corruption and for good government efficiency. Further, it has been recognized for the potency of its labor and good markets; leading worldwide in financial market growth. The competitiveness of the country is also reinforced by superlative infrastructure with outstanding facilities of transportation and a sturdy focus on learning that gives workers with the skills wanted for a quickly changing international economy. The country has also been ranked by the World Bank as the most attractive location of investment, not only regionally, but also globally. This ranking was based on good labor market state, good government policies, financing and infrastructure efficiency.

Singapore has also the best IP fortification in Asia on basis of the communications and incentives set by the government to support innovation through existing and rising industries. In business matters, the government of Singapore have been ranked best for its approach is one and transparent. The country also has a skilled labor that makes it more productive. Singapore has managed to maintain its number one position due to good governance.

Singapore's major existing trade agreements

The major trade agreement existing in Singapore is the US – Singapore Free Trade Agreement. The FTA was signed on May 2003 and was approved by the United State House of Representative on 24th July 2013. It was then signed by President Bush into law on 3rd September 3003. Besides lowering of tariffs, FTA agreement has also allowed easier citizens’ movement from the two countries. With its execution, it made it possible for the citizens from Singapore to live in the US for long time periods. Traders with E1 or E2 visa can get a two-year stay time but an imprecise extension is permissible. Professionals that have H-1B1 visa can stay for a period of up to one and a half years but imprecise extension can further be allowed. This agreement will greatly help in my venture since citizens that get to Singapore from the US for business are doing it at very easy terms.

Eretria’s major trade

Eretria’s international trade is distinguished by its great deficit. The country imports a great percentage of goods compared to what it exports. This country has major trade deficits which clearly show the underdeveloped economy of Eritria in which the need for major imports by a great extent outweighs its exportable goods from the country. The main export products from this country are livestock, salt, sorghum, flour, small manufactures, foodstuffs, and textiles. Major imports from the country are fertilizers, fuel, foodstuffs, spare parts, construction materials, machinery, and military hardware

Eretria's report rankings across the board and how this country got to its current position.

Eretria is ranked last in the overall economies doing business in the World Bank. This country has been rating poorly for a long period. This country got to this poor position due to obstacles that include political instability, difficult in attaining Licenses and permits as well as Access to Land. According to the Worldwide Governance Indicators of World Bank, Eretria has been ranked below the 10th percentile in all the listed indicators. The country also has among the least economies in the 2016 index. The country has portrayed great decline in labor freedom and fiscal freedom.

Eritrea is one of the most isolated and economically sluggish nations in the world. The country has been under the emergency rule ever since 1998. The economy of this country remains ruthlessly underdeveloped, while its rule of law remains enormously fragile. For this reason the country has had great movement of citizens to other countries. The country lacks any notable success. Politically, the country is ruled through autocratic government with the president working with a small circle that has been considered to be the most repressive in the world. The country is also suffering greatly on corruption issues. Eretria has gone though great political instability as well as corrupted regulatory environment hence making the regulations in existence ineffective and outdated. It is also very costly to import goods and it also takes a lot of time (World Bank Group's Website).

Major existing trade agreements in Eretria

Currently Eretria is not eligible for AGOA. Nevertheless, the country is in trade agreement with other African countries under a regional trade agreement that includes 30 nations in the country. Eritrea is also an affiliate of the Eastern and Southern Africa’s common market that has Investment Framework Agreement and Trade with the US.

The major risks associated with starting a new location in Singapore

The major risk associated with staring business in Singapore is lack of laborers due to the high level of employment in country. This would be challenge since local workers are better due to their knowledge of the country’s culture and the people’s behavior. To handle the problem, the company will be required to come up with good salary package that will attract the locals to the company.

The major risks associated with starting a new location in Eretria

The major risk of starting a place in Eretria include bad political and economical environment. The business environment will be hard due to unavailability of financial environment which is unreliable when available. The institutional framework is also corrupt and very poor. The best way the company can do business is through importation rather than setting a place within the country. The company can associate with local companies and import to them products (World Bank Group's Website).

Singapore as the best location to setting up a business location

I have selected Singapore since it has been ranked top for uncomplicated location of doing business. The country is economically stable, not to mention it is politically stable. The country has a skilled labor force with the best life quality in Asia. In Singapore there are o capital gains taxes or dividends; neither is there death/inheritance estate tax. The country also has lower taxes compared to other countries.

References

Central Intelligence Agency's (CIA) "World Factbook" https://www.cia.gov/library/publications/the-world-factbook .

Hill, M.(2015). The Politics of Nation Building and Citizenship in Singapore.

World Bank Group's Website. ( n.d )"Economy Rankings" . http://www.doingbusiness.org/rankings

World Bank Group's Website. (n.d). "Economy ". http://www.worldbank.org/en/country/eritrea/overview