ITC JANUARY 2022 SUGGESTED SOLUTION PAPER 1 PART II Paper 1 part II 5 © SAICA 2022

Part (b) Advise Breeze on which country would be best for expansion with reference to section 2. Also include any other factors that Breeze should consider when selecting one of these countries for expansion. 

Answer

Suggested Solution for ITC January 2022 Professional Paper 1, Part II

Part (b) Advise Breeze on which country would be best for expansion with reference to section 2. Also include any other factors that Breeze should consider when selecting one of these countries for expansion.

1. Risks and opportunities to consider

   1.1. Local debt financing

   1.2. Currency risk

   1.3. Distance

   1.4. Language barriers

   1.5. GDP per capita and higher GDP growth

   1.6. Unemployment rate, skills and liveability

   1.7. Regulatory risk

   1.8. Current environmental performance

   1.9. Taxation of the African locations

2. Other factors to consider

3. Recommendation for in-depth consideration