International Marketing Management Key Aspects Term Paper

Excerpt from Term Paper :

It expalins why Botswana is very interested today in development of tourism and especially eco tourism in order to save existing natural features and resources to future generations: "The trade, hotels and restaurants sector has been growing by more than 10% per annum in recent years, showing the huge potential of tourism. Investment by the private sector in the Botswana economy as a whole has increased from P150m to P500m over the past ten years. Tourism investment has increased even faster from P12m to P55m." (From Tourism ripe for investment)

2. Identify any government tax or other financial incentive that may apply to a foreign (Service Sector) firm

Today government of Botswana provides a favorable investment climate for foreign investments that are ready to invest in non-mining sector of economy. Such practices according to the opinion of specialists will allow to create a developed infrastructure, will allow the country to introduce innovative technologies in all spheres of life, will increase skills and qualifications of workers and from the other side will allow to save unique natural resources of the country.

Government pays a special attention to investment in private sector of economy though special economic measures and opportunities such as attractive system of taxation, no exchange controls, etc. No exchange control in Botswana includes free reparation of profits, dividends and capital. Corporate tax for manufacturing companies and accredited financial organizations is only 15%, for other forms of business it's 25%. Government of Botswana also works on its taxation regulations: "From 1999 a new non-negotiable mining tax formula was introduced in order to provide international investors with greater certainty. A variable rate income tax was introduced with parameters set at internationally competitive levels, between a minimum of 25% and a maximum of 55%.." (from (http://www.discover-botswana.com/articles/doingbusiness.php) very important fact for foreign investors is that Botswana has zero tolerance towards corruption. An international organization such as Transparency international mark that corruption level in the country is relatively low and is the lowest in Africa today. Botswana is on the 25th position in the least of the least corrupted nations, which states that investment in this country is not only profitable but also easy to organize.

Ministry of trade of Botswana had created certain requirements for foreign investors who want to invest in country's economy:

Minimum investment for non-citizens is $100,000

Minimum investment for ventures owned in cooperation with Botswana citizens is $75,000

Enterprises, which have more than two shareholders, require additional holders to bring $50,000 per person.

Botswana's government is especially interested in foreign investment, which will bring demand in a more qualified working power and will create training in order to increase qualification and education standards of its population. Due to the particularities of economy and it's orientation, government especially encourages investments in the following industries:

Textiles and garments

The establishment of a modern tannery

Diamond cutting and polishing

Jewellery

Glass manufacturing

Engineering products

Printing and publishing

Plastics

Ceramics

Information technology

Data processing

Tourism

The International Financial Services Centre (IFSC) wants to encourage banking and finance companies, broking and trading, insurance, investment advice, and the flotation of unit trusts, money market funds, equity funds and…

Sources Used in Document:

Tourism

The International Financial Services Centre (IFSC) wants to encourage banking and finance companies, broking and trading, insurance, investment advice, and the flotation of unit trusts, money market funds, equity funds and retirement funds." (from (http://www.discover-botswana.com/articles/doingbusiness.php)

International Marketing Management

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