Cross-Cultural Management Essay Example

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PEST factors

South Africa







Political factors

While South Africa is a Democratic country its political stability is questionable. South Africa is faced by political unrest including protests. Several years ago, South Africa was hit by Xenophobic violence targeting foreigners. Corruption is also a major political issue in the African country (CIA 2016A). Similarly, Thailand is an unstable democracy as shown by the Red Shirts campaign against the governing regime(CIA 2016B). The red-shirts have carried out bombings and raids and warned foreigners from visiting the country.

In contrast, Australia is a stable democracy that provides a very safe environment for investment. Australia has no ongoing political struggles and the country’s government is open and inclusive offering justification for political struggles (CIA 2016C). Australia business environment is also corruption free giving investors both confidence and certainty.

Economic Factors

Economically, South Africa is thriving economy and has been ranked an upper middle-income country. With immense mineral wealth South Africa economy is expected to accelerate economic growth in the coming years. However, unemployment remains high in south Africa at 25 per cent (CIA 2016A). Thailand is also facing many economic issues including bankruptcy of firms and high unemployment rates. Thai tourism industry have been on the decline following the insecurity caused by the red shirts struggle. The Thai economy has been on the recovery path since 1997 when it nearly collapsed.

Australia has recorded impressive economic growth rates in the last few years. Despite a slowdown in global economic growth, the Australian remained resilient and its economy continued growing at higher rates than that of other OECD countries. Australia haverecorded consistent GDP growth, low unemployment rates and relatively stable interest rates. Unemployment is very low in Australia and unemployment is estimated to be at 5%. Australians also earn high incomes allowing them to fly for holidays abroad. Arguably, Australia is the best investment destination among the three countries.


CIA 2016A. CIA Fact book: South Africa. Accessed 16th February 2016,

CIA 2016B. CIA Fact book: Thailand. Accessed 16th February 2016,

CIA 2016C. CIA Fact book: Australia. Accessed 16th February 2016,