International market selection : a South Africa-Asean case study

Swart, Theodor Crous (2002-12)

Thesis (MBA)--Stellenbosch University, 2002.

Thesis

ENGLISH ABSTRACT: South African exports increased substantially during recent years and were assisted by the depreciation of the Rand. During this time exports to the European Union and the United States blossomed, but proportionally exports to the growing region of South East Asia still remained at a low level. The major global players consider the Association of South East Asian Nations (ASEAN) as an important trading partner in global trade, but the South African market share is minimal in the ASEAN market. The question that now has to be answered is: do opportunities exist for South African exporters in ASEAN or is it due to a lack of opportunities that exports are at the current level? In investigating the opportunities for South African exporters in ASEAN, it is important to know what approach should be followed to select an attractive country for a product or a product group. Therefore this study is aimed at proving an insight into the concept of international market selection and to highlight the approaches in international market selection that could benefit South African exporters. This study also investigates the influence of ASEAN as a regional organisation in global trade and its relationship with South Africa. An overview is given of the regionalism trend and the major regional organisations important in this regard. The political approaches that ASEAN's major trading partners followed to enhance trade are also investigated in order to re-evaluate the South Africa's current relationship with ASEAN. In order to enhance trade, the advantages ASEAN has to offer are also highlighted. Based on previous research literature on international market selection and against the background of the regionalism trend in global trade, a new international market selection model will be developed in this study for South African and international use. This will provide SA exporters with a systematic approach that will enable them to select the most attractive countries for their products or product groups in the global arena. In order to understand the practical application of the model, South Africa as the exporting country and ASEAN as the importing region will be used as a case study. The model will identify the most attractive countries for each of South Africa's product groups according to the 96 chapters of the Harmonised Commodity Description System (HS) linked to product groups and industries based on actual trade data. Based on South Africa's competitive export advantage in the 96 chapters of the HS linked to product groups and industries, opportunities will be identified in the most attractive countries in ASEAN selected by the international market selection model.

AFRIKAANSE OPSOMMING: Suid-Afrikaanse uitvoere het aansienlik gestyg die afgelope paar jaar en was veral bygestaan deur die depresiasie van die Rand. Gedurende hierdie tydperk het uitvoere na die Europese Unie en die Verenigde State van Amerika die hoogty gevier, maar proporsioneel het uitvoere na die groeiende streek van Suidoos-Asië nog steeds op 'n lae vlak gebly. Die vernaamste globale spelers beskou die Assosiasie van Suidoos-Asiese Nasies (ASEAN) as 'n belangrike handelsvennoot in globale handel, maar Suid-Afrika se markaandeel in die ASEAN mark is minimaal. Die vraag wat nou beantwoord moet word is as volg: Bestaan daar geleenthede vir Suid-Afrikaanse uitvoerders in ASEAN of is dit as gevolg van 'n tekort aan geleenthede dat uitvoere huidiglik op hierdie vlak is? In die ondersoek na geleenthede vir Suid-Afrikaanse uitvoerders in ASEAN, is dit belangrik om te weet watter benadering gevolg moet word om die mees aantreklike land te selekteer vir 'n produk of produkgroep. Daarom is die studie daarop gerig om insigte te verskaf oor die konsep van internasionale markseleksie en om die benaderings uit te lig in internasionale markseleksie wat Suid-Afikaanse uitvoerders kan bevoordeel. Die studie ondersoek ook die invloed van ASEAN as 'n regionale organisasie in globale handel en hul verhouding met Suid-Afrika. 'n Oorsig word gegee oor die regionale tendens in internasionale handel en die vernaamste regionale organisasies wat belangrik is in hierdie verband. Die politieke benaderings van ASEAN se vernaamste handelsvennote om hul handel te bevorder word ook ondersoek om Suid-Afrika se huidige verhouding met ASEAN te herevauleer. Om handel te bevorder word die voordele wat ASEAN kan bied ook uitgelig. 'n Nuwe internasionale markseleksie model word ontwikkel in hierdie studie vir Suid- Afrikaanse en internasional verbruik teen die agtergrond van regionalisme en wat gebaseer is op vorige navorsings literatuur oor internasionale markseleksie. Dit sal Suid-Afrikaanse uitvoerders 'n sistematiese benadering verskaf wat hulle in staat sal stel om die mees aantreklike lande vir hulle produkte en produkgroepe globaal te selekteer. Om die praktiese toepassing van die model te verstaan, sal Suid-Afrika as die uitvoerland en ASEAN as die invoerstreek gebruik word as 'n gevallestudie. Die model sal die mees aantreklike lande identifiseer vir elk van Suid-Afrika se produkgroepe volgens die 96 Hoofstukke van die "Harmonised Commodity Description System" (HS) wat verbind kan word met produkgroepe gebaseer op bestaande handelsdata. Geleenthede in die mees aantreklike lande in ASEAN wat deur die internationale markseleksie model selekteer is, word identifiseer gebaseer op SUid-Afrika se kompeterende uitvoervoordeel in die 96 Hoofstukke van die HS wat verbind kan word aan produkgroepe.

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