Asnwer the following Question: Explain the implications of a Gini Coefficient of 0.643 relating to the South African economy, retail sector and brand of the organisation. Derive practical examples from the Lorenz curve to substantiate your explanation
You are a brand analyst working for a large multinational retail organisation in South Africa. The organisation specialises in premium products. You have been provided with the following
statement: “According to the World Bank, South Africa remains a dual economy with one of the highest inequality rates in the world, with a Gini Coefficient of 0.643.” The Board of Directors convened a special meeting to discuss the implications of the quote above.
You are required to produce a brief on the statement above, specifically referring to the implications it holds for the brand.
You were able to locate the following graph denoting the Lorenz curve from which the Gini coefficient was derived:
Asnwer the following Question:
Explain the implications of a Gini Coefficient of 0.643 relating to the South African
economy, retail sector and brand of the organisation. Derive practical examples from the
Lorenz curve to substantiate your explanation
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