A Pestle Analysis of Mining Industry Essay

2607 Words Jan 1st, 2013 11 Pages
| A PESTLE Analysis of Mongolian Mining Industry | | | Hui Wu (Meredith) | 09/04/2010 |


A PESTLE analysis of the Mongolian mining industry 2 1. Executive summary 2 2. Introduction 3 3. PESTLE Analysis 3 4. Analysis of the future environment 8 5. Entry mode options 8 6. Potential risks 9 7. Recommendations and strategic option 10 8. Conclusion 11 9. Bibliography 11

A PESTLE analysis of the Mongolian mining industry 1. Executive summary
This report has analysed the investment environment of mining industry in Mongolia. The PESTLE analysis is considered first as a basic narration of the situation, and then the evaluations based on this PESTLE analysis are given to show the quality of the Mongolian investment
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In addition, because of the remoteness and unpolluted natural beauty, the tourism and service industry has become another reason of the economic growth boom (U.S. Department of State Background Note of Mongolia, 2007).

* In 2006, the Mongolian Parliament passed the corporate income tax law, aiming at cutting the tax burden and encouraging the growth of economy (U.S. Department of State Background Note of Mongolia, 2007). The series of activities which may be a benefit for the foreign company to join the mining industry and have a corporation with the local government. 4.3 Social * The data base of Central Intelligence Agency indicates that the labour force of Mongolia is 1.068 million in 2008; the occupation of the secondary industry sector is only 5% of total. Furthermore, the data base in 2009 also shows that the median age of the whole population of Mongolia is 25.3 years, in which male are 24.9 years, while the unemployment rate in 2008 is 2.8% (CIA, 2010). It can be concluded that the major labour force for the mining industry are plenteous, setting up a mining company in Mongolia can help the local government solve the unemployment problem.

* By the end of 2004, the population below poverty line in Mongolia is 36.1% (CIA, 2010). Large population are relying the traditional agriculture and herding industry and cannot

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