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Learning Outcomes: Knowledge: 1.1: Identify and evaluate the significant trade agreements affecting global commerce 1.3: Explain the forces driving and evaluating the impact of globalization. Skills: 2.1: Analyse the effects of culture, politics and economic systems in the context of international business Case study Please read Case 2: “The Decline of Zimbabwe” available in your book (International business: Competing in the global marketplace (13th ed.), at page no.627, and answer the following questions: Case study Question(s): 1.Why has Zimbabwe’s economic performance been so poor? Discuss. (minimum words: 400, marks: 3) 2.Do you think Zimbabwe’s economic performance would have been better under a different system of government? Which one? Explain your reasoning. (minimum words: 500, marks: 4) 3.Discuss the steps needed to be taken now to improve the economic outlook for Zimbabwe? (minimum words: 400, marks: 3) Important Notes: This is an individual assignment. All references must be cited using APA format. This includes both in-text citations and the reference list at the end of the document.Originality, Similarity and Plagiarism Check: Your work must be original. All papers will be submitted through SafeAssign software to check for similarity and plagiarism. Any instance of academic dishonesty will result in a grade of zero for the assignment. No exceptions and no second chances! Answers Answer-Answer-Answer-
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المملكة العربية السعودية
وزارة التعليم
الجامعة السعودية اإللكترونية
Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment 1
Introduction to International Business (MGT 321)
Due Date: 09/03/24 @ 23:59
Course Name: Introduction to International
Business
Course Code: MGT-321
Student’s Name:
Semester: Second
CRN:
Student’s ID Number:
Academic Year:2023-24-2nd
For Instructor’s Use only
Instructor’s Name:
Students’ Grade:
Marks Obtained/Out of 10
Level of Marks: High/Middle/Low
General Instructions – PLEASE READ THEM CAREFULLY
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•
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The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Learning Outcomes:
Knowledge:
1.1: Identify and evaluate the significant trade agreements affecting global commerce
1.3: Explain the forces driving and evaluating the impact of globalization.
Skills:
2.1: Analyse the effects of culture, politics and economic systems in the context of
international business
Case study
Please read Case 2: “The Decline of Zimbabwe” available in your book
(International business: Competing in the global marketplace (13th ed.), at page
no.627, and answer the following questions:
Case study Question(s):
1. Why has Zimbabwe’s economic performance been so poor? Discuss. (minimum
words: 400, marks: 3)
2. Do you think Zimbabwe’s economic performance would have been better under a
different system of government? Which one? Explain your reasoning. (minimum
words: 500, marks: 4)
3. Discuss the steps needed to be taken now to improve the economic outlook for
Zimbabwe?
(minimum words: 400, marks: 3)
Important Notes:
• This is an individual assignment.
• All references must be cited using APA format. This includes both in-text
citations and the reference list at the end of the document.
• Originality, Similarity and Plagiarism Check: Your work must be original. All
papers will be submitted through SafeAssign software to check for similarity and
plagiarism. Any instance of academic dishonesty will result in a grade of zero for
the assignment. No exceptions and no second chances!
Answers
1. Answer2. Answer3. Answer-
Cases
627
The Decline of Zimbabwe
In 1980, the southern African state of Zimbabwe gained
independence from its colonial master, Great Britain.
Speaking at the time, the late Tanzanian President, Julius
Nyerere, described Zimbabwe as “the jewel of Africa.” It
was a country that boasted a strong economy, abundant
natural resources, and a vibrant agricultural sector. As
part of the independence process, the British bequeathed
Zimbabwe a number of democratic political institutions.
Zimbabwe’s birth as an independent nation was a difficult one. In 1965, the minority white rulers of what was
then known as Rhodesia unilaterally declared independence from Britain, setting up an apartheid state where
blacks were excluded from power. The British government wanted majority rule, stated that the declaration of
independence was an illegal rebellion, and imposed sanctions on Rhodesia. Other nations that followed suit included the United States. An armed conflict ensued, with
two guerrilla movements waging war against Rhodesia’s
white government. One of those guerrilla movements, the
Zimbabwe African National Union (ZANU) was headed
by Robert Mugabe, who aligned himself and his movement with the Maoist version of communism. A combination of international sanctions and guerrilla activity
eventually forced the white minority rulers of Rhodesia to
end their rebellion. In 1979, Rhodesia reverted to British
colonial status.
The following year, Zimbabwe gained legal independence. Robert Mugabe was elected as the country’s first
prime minister. Thirty-seven years later, Mugabe was still
in power, now as President. His ZANU-PF party had won
every election since independence. Once a largely ceremonial position, Mugabe had systematically consolidated
power in the Presidency and restricted his political opponents. He was re-elected as President in 2013 in a general
election that, like many in the Mugabe era, was widely
seen as rigged. The country has also been beset by endemic corruption. Corruption watchdog Transparency
International recently ranked Zimbabwe as one of the
most corrupt nations in the world.
Zimbabwe’s economic performance in recent years
ranks among the worst in the world. Although the economy maintained a positive economic growth rate through
the 1980s and 1990s, it has deteriorated rapidly since
2000. Between 1999 and 2009, Zimbabwe saw the lowest
economic growth rate ever recorded, with an annual
decline of 6.1 percent in GDP.
The decline occurred after Mugabe launched a “fasttrack” land reform program that encouraged seizure by the
state without compensation of land owned by white farmers. At the time, some 4,000 white farmers were the backbone of the country’s strong agricultural sector. The land
was given to members of the ZANU-PF party and other
supporters of Mugabe, who lacked experience with
modern agricultural
practices and had never
farmed at all. In the
wake of the land reform
program, agricultural
productivity slumped
and the country is now
a net importer of food.
McGraw-Hill Education
Another drag on
the country’s growth
was the 2008 Indigenisation and Economic Empowerment Act, which required that enterprises doing business in Zimbabwe have at least 51 percent local
ownership. In practice, this often meant high-ranking
ZANU-PF party members. After the act was passed, a
number of foreign corporations doing business in the
country pulled out.
The country’s mining sector remains potentially lucrative, with large platinum and diamond deposits mined by
private enterprises, but almost all of the licensing revenues due to the state have reportedly disappeared into the
hands of army officers and ZANU-PF politicians. Taxes
and tariffs are high for private enterprises, which discourages private business formation, while state-owned enterprises are strongly subsidized. Tourism, once a big
revenue earner, has declined as Zimbabwe’s wildlife has
been decimated by poaching and deforestation. As economic activity slumped, the country’s formal unemployment rate reached a staggering 80 percent.
To complicate matters, Zimbabwe was devastated by
the AIDS epidemic, with HIV infection rates hitting a
high of 40 percent of the population in 1998. Due to
AIDS and other public health problems, life expectancy
fell to just 43.1 years in 2003, down from 61.6 years in
1986. By 2014, with HIV prevalence down to 15 percent,
life expectancy had risen back to 54 years.
With tax revenues collapsing, Mugabe funded government programs by printing money. Inflation quickly spiraled out of control, reaching 231,000,000 percent in
2008 and requiring the Central Bank to introduce a
100 trillion Zimbabwe dollar note! In April 2009, the
Zimbabwe dollar was suspended (at the time the trillion
dollar note was worth around $0.40 USD). Zimbabwe
allowed trade to be conducted using other currencies,
particularly the U.S. dollar, the South Africa Rand, the
euro, and the British pound.
Despite the country’s economic implosion, the World
Bank still believes that Zimbabwe has enormous potential
for sustained economic growth given its generous endowment of natural resources, its existing stock of public
infrastructure, and comparatively skilled human resources.
Attaining that potential will require a change in leadership and policies.
628
Part 7
Cases
Mugabe showed no signs of giving up the reins of
power. In February 2017, he held a lavish 93rd birthday
party for himself and stated that he wanted to stand for
another five-year term as president in 2018. However, much
to the surprise of many observers, in November 2017,
Mugabe was forced to resign from office after his own
party started impeachment proceedings against him. He
was quickly replaced by his former vice president,
Emmerson Mnangagwa, whom Mugabe had fired on
November 6 in an action that precipitated the impeachment hearings. Mnangagwa has stated that he will get rid
of Mugabe’s more ruinous policies in an effort to improve
Zimbabwe’s battered economy. Mugabe himself passed
away in September of 2019, although the country still
struggles with his legacy.
Sources
“Will Emmerson Mnangagwa Be Better than Robert Mugabe?”
The Economist, November 30, 2017; “How Robert Mugabe
Ruined Zimbabwe,” The Economist, February 26, 2017; Irwin
Chifera, “What Happened to Zimbabwe, Once Known as the
Jewel of Africa?” VoaZimbabwe, April 17, 2015; “The Real
Balancing Rocks on Every Zimbabwe Dollar,” Slate, January 23,
2017; “Diamonds in the Rough,” Human Rights Watch Report,
June 26, 2009; “Zimbabwe,” The World Bank, http://www.
worldbank.org/en/country/zimbabwe/overview.
Case Discussion Questions
1.
Why has Zimbabwe’s economic performance been
so poor?
2. Do you think Zimbabwe’s economic performance
would have been better under a different system of
government? Which one? Explain your reasoning.
3. What steps need to be taken now to improve the
economic outlook for Zimbabwe?
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