Country Research Paper International Business

Regional and Country Analysis- Africa (Algeria)

Daniel Thompson

B315 HOA: International Business Perspectives

Dr. Julie Creek

Before you do business with any particular country first you must get to know a little about their culture what it is like doing business and other things such as the History, Legal environment, Political environment and the monetary system in place in their country in this paper I will give you the tools to make the decision whether or not to take business into Algeria.

Political Environment

It has three parts to its executive, Judicial and legislative branches of government. The executive branch is made up of the president who is elected by direct vote for a 5 year term the prime minister who is selected by the president. And then the cabinet who is nominated by the prime minister and is selected by the president.

The Legislative branch is made up of parliament who are elected, council of the nation 1/3 elected by president 2/3 elected by regional council and then the National people’s assembly elected by vote.

The last is the judicial branch made up of the supreme court which is put in place by law and the constitutional council 3 selected by the  president 2 elected by National people assembly 2 elected by council of nations and 2 members named by supreme court. According to globaledge.msu.edu in 2004 “President Boutefilka wins re-election in first freely democratic elections”. The constitution was edited in 2008 remove the presidential term limits due to the Arab springs extension into Algeria. Boutefilka was reelected. From the liability of the Arab Springs movement pressured Boutefilka into remove the state of emergency and assurance of constitutional revisions.

Legal environment

Algeria’s legal system shares views with a couple of different countries as said by the nationsencyclopedia.com “Algeria's present legal codes, adopted in 1963, are based on the laws of Islam and of other Northern African and Socialist states, as well as on French laws”. There are some laws in Algeria that you will need to know before bringing business into Algeria. As said by state.gov “In 2009, the government adopted a Complementary Finance Law (CFL) which imposed restrictions on imports and foreign investment. These measures require 51 percent Algerian ownership of new foreign investment, 30 percent Algerian ownership of foreign import companies”.

 There are currently no free trade zones in Algeria. There are also 13 steps that you have to file with certain departments that have costs on some and if you do not file you cannot get your business into Algeria. There is also corruption in Algeria that the government is cracking down on.

Economic system

Algeria in 2015 ranked 157th in freest country, its score went down 1.9 points do to drop off of investments. The reason for this is “Algeria’s economy has been on a declining path of economic freedom over the past five years. Having registered the seventh-largest overall score decline in the 2015 Index, the economy is now rated “repressed.” Public spending, bolstered by the hydrocarbon sector, has been expanding in recent years, undermining fiscal governance. “as said by heritage.org. Algeria’s top 4 exports are oil and coal in some form or another.