Business Environment In South Africa - Research Paper Example

In addition, the country has a sophisticated business environment that enables business to easily export and import goods. This is also advantageous to the global businesses that enter the marker because it increases their global competitiveness. Most global companies prefer South Africa because its manufacturing base for product exports is also not expensive. This is because it is easier to access other markets such as the Sub-Saharan Africa, Australia, and South American markets from the country (Chalmers & Godfrey 273).

In addition, businesses that enter the market have high opportunities to grow. This is because of the faster economic growth in the country. Furthermore, it is easier to enter the marker because of the political stability that has contributed to the creation of the friendly business environment. Political stability has enabled most of the global business to operate effectively because it makes the country integrated into the global market system. It is also easier to do business in the county because of the cultural diversity.

Most global businesses find it easier to team up with the local citizens because of the many different cultures. For instance, the country has about 11 common languages of which English is the most used. This implies that there are no misunderstandings due to communication difficulties. Entering the market is also easier because corruption is not very high in the country. Researches show that among the 163 countries, South Africa is rated number 54 for its transparency. (Chalmers & Godfrey 273).

The country’s company law regime The South African government has implemented various business laws that aim at promoting the competitiveness of the businesses that enter its market. The English law has influenced the favorable legal environment in the country. It easier for global firms to perform effectively since the businesses legal practices relating to transactions and agreement are applicable internationally. This is because the laws have been aligned with the global norms and conventions.

For instance, the country’s constitution is excellent and promotes the autonomy of the judiciary. This implies that most businesses operate under the free economy framework. In addition, the legal system is opened to all the businesspersons including the foreigners on equal legal term. The commercial law also ensures that the businesspersons’ rights are protected by the independent courts. The Johannesburg Stock Exchange (JSE) is among the leading stock exchanges globally due to the country’s favorable commercial legal system.

The JSE limited helps in ensuring that all companies in the market increase their capital in a comfortable and reasonably regulated market environment. The JSE also helps in increasing the quality of its companies by ensuring that all the companies in the stock market achieve higher standards compared to other world- class exchanges. This ensures that shareholders enjoy competent and secure market (South Africa Info.1). State-owned enterprises The state-owned enterprises (SOE) are the government owned corporations or entities in South Africa that perform certain functions as required by the law.

They play a great role in creating a comfortable business environment in the country. For instance, they improve the country’s infrastructure and other services industries such as transportation and water that help in