Answer to Question #235727 in Management for Sukoluhle

Question

Workbook 3305

Question 2   

 Describe the current and past direction of international capital flows 

Question 3    

Describe the South African current international trade situation

Answer 1

Question 2   

 Past

Over the last five years, South Africa has attracted slightly less foreign investment and an increase in the amounts of portfolio inflows. From 2015 to 2018, the country’s average domestic saving rate in GDP percentage was below the global average of 21,2%.

Current

As a result of the Covid-19 pandemic, the country has experienced unprecedented international capital flows. In 2019- to date, GDP contracted by 6%, and international trade fell by 20-32%. FDI flows reduced by 40%

Question 3    

South Africa is one of the leading countries in the continent that is open to international trade. Major trading partners include United States, China, UK, Japan and India. China is the leading import partner with $16.1 Billion, followed by Germany with $9.85 Billion. South Africa Total exports increased by 18.7% this year and an increase of 27.1 % imports. The country’s main export is platinum, representing 59.2% of total exports.