Instead the China-Africa trade has brought some impact on Africa’s market traders and also contributed to poverty. Mercantilism is failing Africa, particularly the SSA. Most of African states are still poor and majority of their citizens still lives in poverty. The trade between China and African is not mutually beneficial, because African states benefit less while China benefit most. Another things that made African states not to benefit most in the trade is that, they export raw material or minerals because they lack means to process those raw material into finished goods and services.
It’s just because they can’t pay for college. After all the scholarship and grant money are used, most people in college are just kind of lost wondering how they’re going to pay for the next semester. And if they can’t figure it out in time then usually they default to student loans or just dropping out. In conclusion student loans are a terrible idea. They are tricky and usually lead to paying much more than intended.
According global growing, majority of African farmers live in rural area and European farmers in cities. On top of that, they do not send their children to school. Therefore, most of the farmers do not have any idea about the outside information like the market price of the coca they are harvesting; they also do not understand foreign languages which most of their customers (middlemen) speak. So, it is very important that government and other international chocolate association should take initiatives to start educating farmers about the price, language, importance of sending their kids to school, and to encourage them to not to use child labor and slavery. Government can also introduce a certification program for farmers who go through these schools for basic farming education.
However, the downside is that yes there are some major drawbacks for Coca-Cola in making such a large scale commitment into Africa. Despite the growth in Africa’s average income and the improvements that are being made within the government, there is still a problem because as of today many or most rural areas in Africa where the government and physical infrastructure are just not stable enough to hold a market entity like Coca-Cola. So by having Coca-Cola invest large amounts of their money into the African economy, could potentially result in the instability within the company and could prove to be disruptive to their
The staff that stayed over got overloaded with the work, which caused the high turnover. La Alianza couldn’t afford to pay higher salaries to retain the staff, due to the low rates of reimbursements from the DSS. The inexperienced and newly graduated case workers had a heavy caseload. The newly graduated case workers failed to find the basic investigation details, such as if parents were lying, or if children were being abused or not. In addition, DSS required time-consuming paperwork with the extremely heavy workload.
The barriers that hold minority entrepreneurs back has varied considerably, from the lack of being able to obtain a business license, lack of access to capital, and racial discrimination. “The value of loans for minority-owned businesses are usually less than non-minority loans” (Kiger, 2016, p.19). “For minority businesses with more than $500,000 in gross revenue, the average loan amount is $149,000 (Arson, 2016, p.5)”. This quantitative research will show precisely how minority entrepreneurs are overwhelming disadvantaged to the demographic majority. Due to “a real or perceived likelihood of rejection,” some minority-owned businesses avoid seeking loans which could prevent these businesses from reaching their potential (Kiger, 2016).
This is another indication that the company is not performing well. Looking at the above data on the ratios for Sweet Dreams, they are experiencing a downward trend in almost all aspects. They’re currently have issues paying off the loans they currently have, and offering new financing could be a risky endeavor for the bank. It also shows that they might not ever be able to pay back any of their loans to the bank either. At the moment, looking at all of the data, the bank shouldn’t increase their line of
Why are there poor countries? Some countries are poor because they lack natural resources, while several are full off and do not know how to use them in order to achieve their economic potential. One of the best examples is Nigeria. It has resources, but does not know how to exploit them. Nigeria Nigeria, the largest country in Africa, whose population was estimated to 178,516,904.0 million in 2014 is also unexpectedly reported to fight absolute poverty; 60.9% of Nigerians lived in absolute poverty in 2010.
Lack of legal arrangements such as laws and regulations also facilitates the emergence of the informal economy. In these countries where economic freedom has been restricted, regulations about credit and labor markets remained insufficient. In terms of trade policies, a closed look was exhibited for many years, foreign capital has not been granted the necessary importance, hence they were left behind in terms of technological innovation. The institutions developing countries have usually lack sufficient activity in supporting productive investments and solving the low-efficiency problem. In those societies, legal principles discriminate among individuals, the property rights are not valid for the majority of the population, the elites have unlimited economic and political power, only the lucky citizens can benefit from the quality education, have access to credit and production opportunity.
Most of the African countries were trapped by a set of political and economic institutions that mainly hindered their economic development. The main reasons for this hindrance can be explained by the absolutist and patrimonial forms of government as well as the decentralized polities in many of the region’s countries. (Acemoglu & Robinson, 2010) Due to slavery and later on colonialism, a very contradictory institutional dynamic started to emerge which than excluded many African states from taking advantage of innovation in economic institutions and furthermore from technological inventions. Therefore, there has never been a real chance for a complete institutional reform. In the 1960s, Africa was left with structures of colonial rule like dual-economies, which meant that in many states two distinct types of economies existed with a capitalist based manufacturing sector and labor intensive agricultural sector.