Moving a business to Nigeria. Political and Legal, Demographics, Essay

Moving a business to Nigeria. Political and Legal, Demographics, Culture And kind-hearted Development Index - Essay ExampleThe following paper discusses the m each challenges of shifting business to Nigeria and recommends solutions to the slide labor costs and increasing competition. Information regarding Nigerias demographic, economic, cultural, political and developmental situation has been analyzed leadership to the decision that the company should continue to produce and sell in the US and not do any kind of business in Nigeria. Demographics of Nigeria Nigeria is the most populous country in Africa. In July 2012, Nigeria was estimated to record a commonwealth of 170,123,740 people (Akinpelu 7). This translates to a tribe density of 184. 52 compared to 33. 114 people per square kilometer in USA (Hamilton and Webster 51). This indicates that Nigerias resources, especially land, are quite strained. Such a high population density indicates light planning and possibility of a na tion not being able to sustain itself. Although the high population may indicate availability of cheap labor, privation of sufficient funds from the government towards education leads to lack of quality human resource. This is not trade good for business and thus, it would not be advisable to move a business from New York to Nigeria on the basis of high population densities. In fact, USA has a population higher than that of Nigeria making it a larger market amidst growing competition in the business of manufacturing mechanised scooters. There are 250 ethnic groups in Nigeria divided almost equally between Christianity and Islam. Religious differences have seen a history of intense religious clashes between Muslims and Christians causing poor business environments. On twentieth June 2012, Red Cross estimated that 80 had been killed in Kaduna due to a Muslim-Christian conflict. To curb language barriers, English is utilize as the official language. The literacy level in Nigeria i s estimated to be 78% compared to 99% for USA (Hamilton and Webster 73). This gives USA an f number hand while using these figures to compare quality of workforce between the two countries. Culture being an African country, Nigeria has deep roots in its culture. With over 50 languages being spoken by the 250 ethnic groups, Nigerias culture is quite diversified and thus complex to generalize. This may not be good for business since it is complex to familiarize a business with the umpteen cultures in Nigeria. Nigerias is however cursorily changing into a modernized country as a result of the rise of its movie assiduity known as Nollywood in the global market (Akinpelu 24). This shows that Nigerians are hardworking and creative relative to many countries in Africa but certainly not the USA which has the biggest and most developed movie industry in the world. USAs culture is modernized and more than uniform compared to that of Nigeria (Hamilton and Webster 93). USAs culture is more liberal as compared to Nigeria hence making it easier to accommodate change as a strategy in business. Culture is an important factor while considering modes of marketing in order to reach and convince a larger audience. Human Development Index Human development index is important in find how developed a country is. This index captures information about life expectancy, education, literacy, quality of life and standards of living. With the inclusion body of all the above determinants of human development index, we can comfortably classify countries as underdeveloped, developing or developed. Nigerias HDI was estimated to be 0.459 and thus sort as having low human development. USAs HDI is classified as very high ranking 3rd globally with a figure of 0.910 (Hamilton and Webster 49). This makes US a better region to nature ones business compared to Nige