Answer to Question #315424 in Accounting for Sanyo

Question

Select and examine any two economic systems that you think affect businesses most in South Africa. 

Give five reason

Answer 1

Two economic systems that affect businesses in South Africa include a mixed economic system and capitalist economy.

This is because there are well-developed regulatory systems and government policy guiding markets.

There is a variety of private freedom, combined with centralized economic planning and government regulation.

There are laws governing commerce, labour, maritime issues, competition policy, copyrights, patents, trademarks and disputes.

The state is also a major player in the economy itself.

For foreign investment, no government approval is required and 100% foreign ownership of business is permitted.