2.2 Give reasons for two countries in middle east, Palestine and Israel, you would advise Shoprite to avoid for the foreseeable future and one that you would invest in and why? (10)
One country in the Middle East that Shoprite should avoid for the foreseeable future is Palestine. This is mainly due to the ongoing Israeli-Palestinian conflict and the political instability in the region. The conflict has led to disruptions in the economy and frequent closures of businesses, making it risky for Shoprite to establish a stable presence. Additionally, the complex administrative and bureaucratic procedures required for doing business in Palestine can be cumbersome and time-consuming for a foreign company like Shoprite.
Another country that Shoprite should avoid for now is Israel. Although Israel has a stable economy and a strong consumer market, it remains at the center of the Israeli-Palestinian conflict. The political tensions in the region can create an unfavorable business environment, with potential risks of boycotts or negative public sentiment towards companies perceived to be supporting one side of the conflict. Moreover, the Israeli government's strict regulations regarding imports and exports might pose challenges for Shoprite in terms of establishing a supply chain and sourcing products.
On the other hand, one country in the Middle East that Shoprite could consider investing in is the United Arab Emirates (UAE). The UAE, and particularly Dubai, has established itself as a regional business hub and a popular tourist destination. The country has a stable political environment, strong infrastructure, and a pro-business government with a supportive regulatory framework. Shoprite could tap into the thriving retail market in the UAE and leverage its strategic location to expand its business across the Middle East and Africa. Additionally, the UAE offers attractive tax incentives and a diverse consumer base, making it an enticing prospect for investment.