Furthermore, Ratio of urban and rural population among the 24 million people is 20% in urban and 80% in rural, we can assumed that Serenade is less- evildoing country as the population in rural is higher than urban area. We check on income distribution to know how a nation’s total GAP distributed among its population. The lowest income distribution is 20% of population earned 5% from the total income. While highest income distribution is 20% of population earned 80% of the total income, which may potentially to establish numerous markets for luxury good.
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It is more profitable from firm to operate business in area of resident with higher income because their purchasing power is stronger. B) Most of the main exports in Serenade seem to be agriculture resource and interacted such as clothing, textiles, tea, gems, rubber, coconut, etc. This proves that Serenade is a natural resource rich country and less-developing country. They imported capital goods such as crude oil, petroleum products, vehicles, fabric, etc.
This show that economic structure of Serenade is more concentrated in primary structure, which is based on the extraction of agriculture resource and handcrafted. Since they imported vehicles and petroleum product, this might invest in secondary industry including manufacturing to gain more economic in the future. As the rural area of Serenade has not well developed, it has the potential to get into the market at first and gain the first-mover advantages and create a new market share of developing in agriculture sector.
Moreover, the total export volume is higher than total import volume in Serenade, the gap in between is $40 billion. Most of the export products in Serenade tend to be natural resources. Nature resources are limited and might finish in one day, moreover, with the invention of vehicles may use solar energy instead of petroleum in the future. C) The Democratic Republic of Serenade form of government may be a great advantage for expending firm at the country. It’s an elected executive president with elected parliament.See More on Population