Trade agreement : Agreements signed between Egypt and Algeria agreement on encouraging and protecting investments Agreement on the

he prevention of double taxation Cooperation Agreement on the standardization of measurements and specifications cooperation Agreement between the international trade points of the two countries Agreement on the establishment of an Egyptian-Algerian Business Council Agreement on the establishment of an Egyptian-Algerian fishing company Agreement for the international transport of passengers and goods by road Administrative cooperation agreement for protection against tariff contraventions A cooperation agreement in the field of tourism and conventional industries

Introduction: Overview In the early 1950s, Egypt put all its resources, material and otherwise, to serve Algerian revolutionaries until Algeria achieved its independence in 1954. Egyptians also led the process of Arabizing Algeria's educational curriculums thus restoring the country's Arab identity. On the other hand, Algerian troops fought alongside the Egyptian Armed Forces in the 1967 and 1973 wars against Israel.

Political relations Egypt and Algeria see eye to eye on matters such as the Palestinian question, Iraq, Sudan and Lebanon. The two countries also hold identical views on the issue of reforming the United Nations system and expanding the membership of the Security Council. Exchanged visits July 2010 President Hosni Mubarak visited Algeria to pay his condolences to Algerian President Abdulaziz Boutafliqa on the death of his brother. Talks between the two leaders dealt with Arab and African concerns as well as with the issue of expanding the UN Security Council membership. September 2010 A delegation representing the Association of Algerian Muslim Ulama visited the Egyptian Embassy in Algeria to express appreciation to the Egyptian Authorities for the great efforts exerted and the hospitality extended to the Algerian convoy of relief assistance to Gaza. April 2010 Minister of Petroleum Eng. Sameh Fahmi visited Algeria to attend the 10th Gas Exporting Countries Forum (GECF).

March 30, 2008 Algerian President Boutafliqa visited Egypt for talks with President Mubarak. Discussions dealt with the outcome of the Damascus Arab Summit (March 29, 2008) and the issues of Lebanon, Sudan and the Middle East peace process. Ways of promoting bilateral cooperation were also explored. April 2006 President Mubarak visited Algeria where he held talks with Algerian President Boutafliqa. Issues of mutual interest were discussed alongside the situation in Sudan and the Syrian-Lebanese crisis. Ways of promoting economic cooperation were explored as well.

Economic cooperation Egyptian investment projects in Algeria were valued in 2009 at $4 billion and $890 million in the agricultural, construction, industrial services and communication sectors. Trade exchange between the two countries in the first 8 months of 2009 was put at $806 million. Algerian exports to Egypt were estimated at $612.7 million; imports at $196.8 million Early in 2005, the two countries upgraded their joint committee to presidential level; a committee at foreign ministers' level has been established to ensure the smooth administration of regular day-to-day business. A number of Egyptian companies also took part in the 38th Algiers International Fair held on June 1 to 7, 2005. Agreements signed agreement on encouraging and protecting investments Agreement on the prevention of double taxation Cooperation Agreement on the standardization of measurements and specifications cooperation Agreement between the international trade points of the two countries Agreement on the establishment of an Egyptian-Algerian Business Council

 Agreement on the establishment of an Egyptian-Algerian fishing company Agreement for the international transport of passengers and goods by road Administrative cooperation agreement for protection against tariff contraventions A cooperation agreement in the field of tourism and conventional industries Cultural cooperation In 2008, Al-Ahram Organization organized a cultural festival in Algeria under the title "Nights of Joy". An Egyptian movie week was also held there in January 2006. Religious cooperation Al-Azhar holds training courses to benefit Algeria's scholars and preachers. Algerian students also study in Al-Azhar University. II- Geographical Setting Location : Northern Africa, bordering the Mediterranean Sea, between Morocco and Tunisia Climate : arid to semiarid; mild, wet winters with hot, dry summers along coast; drier with cold winters and hot summers on high plateau; sirocco is a hot, dust/sand-laden wind especially common in summer Geography : Second largest country in Africa after Sudan. III- Social institutions A. Family 1- The nuclear family 2- The extended family 3- Dynamics of the family a. Parental roles b. Marriage and courtship 4- Female/male roles (changing or static?) The Family Marriage

The average age at first marriage is 31.3 among males and 27.6 among females. The marriage rate has decreased from 5.97% in 1990 to 5.36% in 1998. This rate, however, had increased slightly again in the year 2000 to reach 5.84% (ONS, 2001). The Algerian family is an extended family which contains several small families under what is called the large house (Al-Dar Al-Kabirah) in rural areas and large tent (Al- khiama Al- Kabirah) among the Bedouins tribes. Usually, about 20-60 persons live collectively in one large family. Each extended family may include between 3 to 4 generations The Algerian family is patriarchal and extended. In Berbers areas and other regions of the country the extended family includes three to four generations but sooner or later it divides to several families, which go through the same cycle again. Nevertheless, the extended family type, as Boutafnoushat asserts, is founded on two bases: (1) Blood relationships (Asabiyah), which implies economic, social and ethical integration among the members of the extended family, clans and tribes. (2) Relationship with land, which implies developing strong relationships with and love of the land of the ancestors. Residence after marriage was patrilocal, in that the married sons resided in or near the father's residence, or that of kinsmen. The married daughter resided with or in a separate home near the father-in-law and mother-in-law, and under their authority. In general, married sons and daughters live with or very near to their parents. However, because of housing crisis in large cities, most of the newly married sons live with their parents even if they are permitted to live separately. The newly married couples are supposed to show respect and obedience to their parents and grandparents. In return, they get their blessings and help. Usually, the grandparents, especially grandmothers, care for their grandsons and granddaughters. The sons and daughters carry on their fathers or familys names besides their first names. Women keep their family names even when they get married. This is in fact true in all Muslim countries. Thus, the Algerian family is still dominantly an extended family, although a new trend towards becoming a nuclear family is developing slowly among young educated people even in rural areas. The average size of the Algerian family was in

1998 about 6.68 persons. The trend is towards a smaller family size especially in urban areas.

Today, about 60% of the total population lives in urban areas, which further complicates the housing crisis in the already crowded cities. Furthermore, the high cost of living, unemployment, insecurity and political instability have weakened the social bonds to a large extent. However, overcrowding and housing shortages often forced people of a given kinship to scatter throughout a city, which decreased the solidarity of migrant groups (Metz, 1993). The other aspect of change is women's work in different institutions and activities. Even though the rate of women's participation in the labor force was about 25% in 2000, this rate will inevitably increase in the future because of the high percentage of females at different levels of education. The attitude towards women working outside their family's property is changing dramatically. Therefore, more women are joining the labor market every year.

Demographics The birth rate in Algeria is still very high even though it decreased during recent years from about 3.7 to 3.1. Unemployment, however, is increasing. It is estimated to be 30% in cities and 28.71% in rural areas. This percentage is very high especially since 60% of Algerians are city dwellers. Furthermore, about 27% of the active total population is less than 30 years old (ONS, 2001).

The Education System One of the priorities of the governments after independence was building schools even in remote areas. Schools are open to both genders, who share the same classes in all educational levels. Hundreds of vocational schools are also open to both sexes in different regions of the country. The actual total literate population was estimated in 1995 to be 61.6% (73.9% males and 49% females). Interestingly, the proportion of female students in high schools is, for the first time in the Algerian history, higher than of males, reaching 52.54% in 1997. The total schooling rate in Algeria was 83.05% in 1998. However, the general rate of schooling is still higher among males than females (85.28% males and 80.73% females in 2001 (ONS, 2001)).

Political Institutions and Legal System Historically, the social life of Algerians in small communities in the mountains and in the desert was regulated on the basis of consensus. Usually, consensus was reached after informal consultation and discussion. The consultation was shared and practiced by all mature males of the community. However, wisdom of aged people was given more weight. This practice is the result of mainly three factors: ecological, cultural and religious. In the early 1970s, the government introduced a socialist approach to development on the basis of planned economy. The riots of October 1988, however, put an end to the socialist regime in Algeria. The successive regimes tried to move towards liberalism in economics but with less success because of the social and political instability in the country. The current political system in the country is republican and parliamentarian.

Algeria receives a score of -1.05 for the factor "Political Stability" in the 2008 World Bank's Governance Indicators, published in 2009 by Kaufmann, Kraay, and Mastruzzi. The governance estimates are normally distributed with a mean of zero, a higher score signifies a less violent and politically more stable society. The 2007 Country Commercial Guide published by the U.S. Department of Commerce notes that political violence in Algeria has declined since the 1990s, but adds that, in 2006, suicide bombings targeted government and foreign targets. The U.S. State Department's 2009 Background Note on Algeria reports that the countrys security situation has seen improvement, but political turmoil continues. The Salafist Group for Preaching and Combat changed its name in 2007 to al-Qaida in the lands of the Islamic Maghreb.A BBC News item dated April 2009 reported that Bouteflika was reelected president by a landslide, amid allegations of widespread election fraud. Bouteflika represents the National Rally for Democracy Party. The government is comprised of the president, as head of state and government, who serves a five-year term and is served by his Council of Ministers and High Security Council. Parties must be approved by the Ministry of the Interior, however, and may not be based on religious, linguistic, ethnic, gender, or regional grounds. One third of the upper house of the legislature is also appointed by the president. The other two-thirds and the whole of the lower house are elected by regional and municipal authorities. There are

48 states or provinces headed by walis (governors) who are reporting to the Minister of the interior. The provinces are comprised of communes. Political Environment : Positive Commitment to growth and / or globalism by ruling authority Positive Attitude toward utilization of global resources to promote domestic growth Positive Commitment to growth and / or globalism by political opposition Political Stability : Yes, for foreseeable future.

Economy The economy is highly dependent on hydrocarbon exports, and thus sensitive to changes in production and prices. Hydrocarbon exports account for 97% of

merchandise exports, 40% of nominal GDP and 72% of government revenues. Exports slumped in 2009 due to price and production effects, but import growth was also off. Nevertheless, the outlook is encouraging. The government has put in place a sizeable US$140bn infrastructural upgrading plan covering 2009-14. The governments total level of indebtedness is low at about 20% of GDP allowing them scope to run fiscal deficits for a number of years. The government is directing its efforts at improving power, water and construction sectors in an effort to attract foreign investors and thereby lay the foundation for growth outside of the hydrocarbon sector. Attitude towards foreign investment however is sometimes off putting. Overall external indebtedness and debt ratios are extremely low. FX reserves are massive at over 40 months of import cover.

Economic Indicators 05-09avg. GDP (% growth, real) Inflation (%chg, pa aveg.) Fiscal Balance (% of GDP) Exports (%, comp. annual growth) Imports (%, comp. annual growth) Current Account (% of GDP) Reserves (Months of curr. Debits) 3.3 3.3 11.3 24.2 14.1 22.6 45.0 2009 2.2 7.9 -7.9 -44.4 2.9 -2.4 46.0 2010 4.0 4.5 -6.2 26.3 -1.9 3.0 44.0 2011 4.2 4.8 -5.9 4.7 1.0 3.5 42.0

External Debt (%of GDP) Debt service Ratio (due) Exchange Rate (to USD; eog)

8.5 6.5 70.5

2.7 3.0 72.7

2.1 2.0 82.7

1.8 1.4 74.4

Political and Economic Environment 1- Political Attitude toward foreign investment Political stability # of political parties Democracy level : Political risks Turmoil: war, insurrection, terrorism, demonstration 2- Economic Factors Inflation rate/ or deflation

Restrictions on capital flows Exchange rate Interest rates GDP Per capita Income

3- Legal and regulatory Data Import and export regulations Tariff barriers, taxation, product regulation Environmental standards Quality standards Product regulations Import licenses Dispute handling bodies Marketing laws Commercial laws

Political: India suffered political instability Taxation - tax rates and incentives : Domestic corporations are subject to tax at a basic rate of 35% and a 2.5% surcharge. Foreign corporations have a basic tax rate of 40% and a 2.5% surcharge. India has recently signed trade agreements with its neighbors and is seeking new ones with the East Asian countries and the United States. India has recently signed trade agreements with its neighbors and is seeking new ones with the East Asian countries and the United States. Its regional and bilateral trade agreements - or variants of them - are at different stages of development: Social: Income distribution Ranking 79 Population : 1189172 Ranking 2 Age structure 0-14 year 29.7 15-64 years :64.9% 65 years and over 5.5% Population growth 1.344% ranking 87 Major cities: DELHI (Capital) 21.72 Mumbai 19695 Kolkata 15294 Chennai 7.416 Bangalore 7.079 English enjoys the status of subsidiary official language but is the most important language for national, political, and commercial communication Education : 3.2% of GDP R142 Climate: varies from tropical monsoon in south to temperate in north Environment current issues: ; water pollution from raw sewage and runoff of agricultural pesticides; tap water is not potable throughout the country

Economic: GDP real growth rate: 8.3 % 2010 Ranking 12. - 7.4 (2009) 7.4 (2008). Labor Force: 478.3 million (2010 est.) country comparison to the world:2 Population below poverty line : 25% (2007) Family income: 36.8 Ranking : 79 world Inflation rate 11.7 (2010) 10.9% (2009) Commercial bank prime lending rate : 12.19 %

Technological: Telephones 35.77 million Ranking 8 Telephones: Mobile cellular: 670 million Rankin 2 Internet country code: In Internet hosts 4536 million Ranking 6 Internet users: 61338 million Ranking 6

SWOT Analysis: STRENGTHS: Investment policies Population Support education IT & software superpower English speaking & analytical students. Strategic Position at various platforms. World class business-social spiritual political leader, Professor, scientist, Manager, Doctor, Engineer. Biodiversity & Traditional knowledge base. Geographical location Diversity vs. Ideas- Innovation Integration. Internet users WEAKNESSES: tax rates Foreign corporations Commercial bank prime lending rate Litigation is expensive and protracted. Pay for Remittances of dividends and interest and royalties received and any capital gains received from a sale of assets. Lack of trained & skill work force Small supply of specialize professional Lack of Indian management models Thinking win-lose lose-win look-outside Lack of learning habits & Team work spirit Unawareness: Quality Standardization THREATS (Internal & external): A feeling of unstable government. Self centered political leadership Slow & Dysfunctional judiciary and corrupt law enforcers Migration of all branch to software job. Job seeking mind sets, not job creator.

OPPORTUNITIES Attractive to foreign investors. Trade agreements. Population growth Internet hosts Climate for water purifiers

strategic marketing plan The objective is to assess opportunities/ threats in terms of culture, political, legal, technological, economic environments, market size, the expected company demand, consumer behavior, competition, and the level of adaptation of the 4 P's. The company, also requests to recommend the appropriate strategic entry approach. Times New Romans, 12 point font, 1.5 spaces between lines, and the whole text flushed left. Titles and Headings are 16 point font bold face and all caps. Page margins 1.25 inches. Make sure that you list your electronic sources, personal contacts, articles, books in Harvard style.

Algerian Culture - Key Concepts and Values Ethnic Diversity Algeria is home to both Arab and Berber populations. The Berber population tends to be in a number of distinct clan bases while the Arab population can be found throughout the country. Despite the ethnic diversity, there is a feeling of unity in the country particularly around specific historical events such as the struggle for independence from France in the 1950s and 1960s. Religion The majority of Algerians are Sunni Muslim. A century old, but now rather depleted, the Jewish population is mainly in the capital Algiers. There are also around 400,000 Protestants and Catholics in the country. In the clan regions of Algeria a small number of Berbers still practice the ancient Berber religion. Islam plays a fundamental part in the life of Algerians, and is present in most aspects of their lives. Time Punctuality is not viewed as being as important in Algeria as in other countries. In the work place the most senior member of staff will set the standard with regards to time. This being so, absenteeism is still viewed as being counter-productive. Patience is a valued attribute within Algerian society and especially within business settings.