Mcdonalds in Ethiopia Essay Example

Ethiopia is located on the eastern horn of Africa bordering Sudan, and Kenya. According to their Gross National Income (GNI), Ethiopia is ranked the tenth poorest third world country. Ethiopia's major cities are comprised of Addis Ababa the capital, Dire Dawa, Harar, and Dessie. Ethiopia is the oldest independent country in Africa and one of the oldest in the world. Unlike most countries in African's history, Ethiopia has never been colonized, except for during the Italian occupation in 1936-1941. In 1974, the Ethiopian People's Revolutionary Democratic Front (EPRDF) help the country overcome bloody coups, uprisings, wide-scale drought, and massive refugee problems, and establish a socialist state. A new constitution was adopted in 1994, which guaranteed the religious rights and the cultural and political rights of all ethnic groups. Today the country is comprised of more than 80 ethnic groups and as many languages. (Central Intelligence Agency, 2006) This diversity and a major boost in tourism are appealing factors to a business with multicultural capabilities such as McDonalds.
Ethiopia is almost twice the size of Texas and has an estimated population of 74 million. Addis Abab has a population of about 3 million and is the most diverse city in Ethiopia. The Amhara and the Oromo with over 65% constitute the majority of the Ethic groups in Ethiopia with Tigre and Somali being second. Although so many languages are spoken in Ethiopia, English is taught as the major foreign language. Two major religious groups occupy Ethiopia, Muslim and Ethiopian Orthodox, with Muslim being the majority(Central Intelligence Agency, 2006).
Ethiopia is a federal republic which is favorable to a foreign business. In the major cities there are foreign business operating in multiple industries. U.S. fortune 500 companies have found the capital Addis Ababa a strategic location to operations in eastern Africa and southern Europe. Ford, IBM, Boeing, Green Star Food, and MCI are just a