- Table of Contents
- Module Five
- 5-1 Discussion: Economic Measures and Physical Infrastructure
5-1 Discussion: Economic Measures and Physical Infrastructure
Use this discussion sample as a guide when completing your own analysis.
Economic measures are an important piece of the market assessment process. In this discussion, you will work on the following critical elements of the final project: Economic Measures, and Transportation and Telecommunication. Using The World Factbook, World Bank (World Bank Video Transcript: INT-113 Geek out with Tariq – The Geek and the Internet Transcript), Trading Economics, and International Trade Centre, find the following economic data on your project country:
- Interest rates
- GDP growth rate
- Exchange rates against USD
- Exchange rate regime
- Labor force major industries
- FDI rates
Using The World Factbook, identify the following elements of physical infrastructure:
- Major airportsand seaports
- Railway stations (government websites)
- Internet users
- Mobile providers (use txtNation)
- Logistics performance index rating (use The World Bank Logistics Performance Index)
Consider the data collected and make some observations on the stability and strength of the economy in your project country. What do high and low levels of unemployment indicate? What does the exchange rate regime tell you about the economy? Consider the presence of existing industries and identify areas of opportunity or risk. Also consider the logistics of shipping and distribution based on physical infrastructure.
Respond to two of your classmates and share a business observation based on the data provided. This is a great opportunity to share examples from history or the current news.
Once you have received feedback from your peers and instructor, you will insert your data and summarize your analysis findings in the Final Project Presentation Template provided. This is your fifth step toward the comprehensive final project presentation. Your second final project checkpoint submission will be submitted in Module Six.
Note: You will not be able to see any of your peers’ discussion posts until you have created and posted your own discussion thread.
To complete this assignment, review the Discussion Rubric document.
- Discussion Rubric: Undergraduate
Unemployment remains a perennial problem in Kenya. 4.9% of the youths between the ages of 18-24 ages are not absorbed into the job market annually. Although July 2020 recorded the lowest jobless month, the inflation rate stood at 4.36%, thus causing economic instability. On average, the investment potential in Kenya stands at 55.3%, with approximately Ksh 135, 897 in FDI. Besides, Kenya facilities a liberalized external trade system in the agriculture, mining, fishing, and manufacturing industries.
Since Independence, the exchange rate regime has modeled flexible exchange rates that have stabilized the economy. As of May 2020, the exchange rate against the USD stood at ksh106. The Kenyan shilling has remained unshaken, thus expanding the GDP growth rate by 1.10% (Trading Economics, 2020). Moreover, the Central bank of Kenya charges a 7% interest rate for all assets. Kenya’s GDP is estimated to reach 70 billion dollars by the end of 2020. Internet and digital migration is also a significant contributor to the continuous economic growth in Kenya. Today approximately 28% of the population has access to internet-connected devices; thus, many companies of the enterprises are tapping into the online market.
Kenya has a well-connected transport system that supports logistics and managerial expertise. Jomo Kenyatta International Airport, Mombasa Moi International Airport, and Malindi Airport serve are the most popular airbase in Kenya. Also, Kisumu and Mombasa seaports are the two most busy shipping and distribution docks. Also, Kenya recently unveiled a nationwide standard rail line that connects all parts of the country. The intensive use of these transport systems fuels economic development and contributes to the GDP. Kenya’s logistic performance index has stood at 3.3 and has been dubbed as the Logistics Centre for the East African frontier.
GSMA Network Coverage Maps
Trading Economics. (2020). Kenya GDP Growth Rate. Retrieved from Trading Economics: tradingeconomics.com/kenya/gdp-growth