MGT-321: Intro to International Busines – ASSI 2

Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University College of Administrative and Financial Sciences Assignment 1 Introduction to International Business (MGT321) 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:ABDULAZIZ NASSER ALBATLI Students’ Grade: Level of Marks: High/Middle/Low Marks Obtained/Out of10 General Instructions – PLEASE READ THEM CAREFULLY • • • • • • • • 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: Analyze the effects of culture, politics and economic systems in the context of international business Case study Please readCase 2: “The Decline of Zimbabwe” available in yourbook (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. AnswerThe economic tragedy that has hit Zimbabwe is a combination of multi-dimensional political, social, and economic forces that have been in play for quite a long time, culminating in the long reign of Robert Mugabe, who, through his authoritarian regime, stifled democratic processes, hierarchized corruption at all levels, and mismanaged economic reforms to create a very bad economic situation. In the early 2000s, the fast-tracking land reform program launched by Mugabe was one of the essential factors that brought Zimbabwe to its economic collapse (Makombe et al., 2023). The act, which was meant to cover up the original wrong of land expropriation during the colonial era, was made without consideration for the white farmers who owned the fertile lands, which caused these people no payment. The removal of grain produce, which was the mainstay of the Zimbabwean economy, led to overproduction and food security issues. These kinds of land allocation saw corrupt government officials take reclaimed lands without the necessary skills and financial resources to run the sector better, which, in turn, was one of the active players in the agricultural crisis. Mugabe also introduced another policy, which was called the Indigenization and Economic Empowerment Act (Nkala, 2022). The policy required foreign investors to deal with the businesses of his cronies. This was not in the spirit of the campaign they were fighting. On a different note, it generated investors’ hesitation due to a reduction in the rate of GDP growth. Additionally, the existence of corruption that is prevalent in the criminal field, specifically in taking of mineral resources, may cause the money meant for social services to be used for purposes other than for social services and is likely to hinder long-term economic growth. Moreover, pervasive corruption has entrenched itself at all levels of government and business (Matambo et al., 2022). The state-owned enterprises were managed poorly and were supplied with too much cash, which led to the depletion of the state budget. The mining sector offered a great promise of revenue generation, but embezzlement was rampant, and these proceeds ended up in the military officials’ and ZANU-PF politicians’ pockets, and the economy was negatively affected. These challenges became more complex because Mugabe’s regime, which was spending money without reducing inflation, was printing money (Kudzai, 2023). What emanated, therefore, was hyperinflation on an unprecedented level that resulted in the national currency being destroyed and the purchasing power of ordinary citizens disappearing as well. The high unemployment is of more concern due to the shortage of stability and the AIDS effects on the workforce. Attending to this issue makes social equality more complicated. However, Mugabe stepped down in 2017, and Emmerson Mnangagwa came to power in 2017 with an opportunity for reforms. Nevertheless, Zimbabwe has been experiencing the consequences of poor leadership for thirty years now. Zimbabwe’s economic recovery necessitates not only policy changes but also institution strengthening and transparency measures, which is to develop trust between the people and the government and attract investment in the country (Mutenga& Vyas-Doorgapersad, 2021). In addition, boosting human skills, revamping agriculture, and advancing sustainable economic development are the keys to unleashing Zimbabwe’s potential to improve its citizens’ quality of life. 2. AnswerIt is highly likely that Zimbabwe’s economic position would be better under another government that is fully-fledged in a strong democracy, the rule of law, and transparency. The government of Robert Mugabe was distinguished by political repression, pervasive corruption, and economic mismanagement, which aggravated the process of developing a mature economy. Mugabe’s presidency marked the commencement of a slow but progressive decline in freedom in Zimbabwe. The opposition was granted the freedom of speech, with dissent to be controlled. The establishment of a democratic system with checks and balances, as well as political discipline and policy continuity, can bring investors confidence, and therefore, long-lasting economic progress will be established. As a result, law and order could have been applied with increasing arbitrariness, security, certainty, and impartiality for the possible investors. Honesty, The fact that leadership factors such as commitments as well as promises were absent under Mugabe’s regime, is the other significant factor, which refers to the need to be accountable and transparent (Hlatywayo et al., 2020). Consequently, the infestation of bribery colonized the various organisms of government, thus suffocating the public sector and eventually robbing citizens of their trust. In order to do so, it must fight against corruption through its transparency and accountability actions. It, therefore, means that the public funds would be fully utilized for the projects that would actually start the economic growth process for the people. Along with this, a comprehensive economic program could have been designed by the free government that took into account all class interests, even equal distribution of wealth, social security, and economic pluralism. Under the leadership of Mugabe, the inception of these policies, fast-track land reform and the Indigenization and Economic Empowerment Act, were designed to embolden the disjunction between the poor and the rich as well as to deter investors. An access-based policy formulation where key players, including the private sector and civil society, contributed to the decision-making process could have generated balanced results and development on both fronts. In the long run, the state of the economy in Zimbabwe might have been better if it had been conducted in the way of new governance that was based on freedom, the rule of law, rule, and transparency, and it should also involve the economic policies that everyone should participate in. This system would have been a replica of how a government should operate, ensuring political stability, investor confidence, and soundness of finances, all of which would have, in turn, provided for economic stability and overall financial well-being for the citizens. The legal system that empowers law to prevail concomitantly with democracy possibly led to Zimbabwe’s economic success (Kanyenze, 2022). Through this process, an equitable, lawful, and transparent government operation with the accountable actions of those acting on its behalf will be guaranteed. The democratized government has a very high possibility that it will create a new face that is investment-friendly and thus attracts more capital, economic growth, and improved living standards. Along with this, democratic governance provides the people with greater opportunities to participate in policy-making processes and select the policies that are most relevant for their welfare, which in turn ensures sustainable economic growth and development. 3. AnswerThe economic situation of Zimbabwe must undergo enhancement in several aspects, for example, identifying the main sources of the economic setbacks and promoting sustained growth. Key steps include: Political Reform: Political reform is an essential determinant of the type of government that is going to be democratic and accountable. Democratic institutions must be empowered, the rule of law must be instituted, and elections must be free and fair to restore people’s confidence in their country. Political stability will provide investment assurances, promote economic development to a great extent, and make it possible for policies to be comprehensively enforced. Economic Diversification: Zimbabwe will need to look into a sector that is still traditional in order to diversify its economy. One of the ways to employ people facing financial difficulties is by laying emphasis on sectors such as industry, science, and tourism, which are the occupational and economic engines. Such diversification of the economy will make it less vulnerable to a negative outcome of a single failure, which will lead to gradual and harmonious economic growth. Addressing Land Reform: The most profitable move is a mixed structure of landscape reshuffling to achieve justice both for the farmers and the economy. Agrarian communities with the needed equipment and knowledge, regardless of race, create food security and higher food production. Moreover, if formal title registration and asset protection of the investors are guaranteed, the financing in the agricultural sphere will increase, too. Promoting Investor Confidence: Investor confidence can be increased through the development of a similar environment that is supported by the factors of transparency, stability, and respect for property rights. A decrease in bureaucracy and paperwork processes is critical, and combating corruption is one of the necessary factors for attracting foreign and even prospective investments. The private sector can be propelled by tax deductions and investment guarantees, and their participation will be maximized. Fiscal Discipline: Financial prudence is the cornerstone of economic stability, as sound financial management is crucial for this purpose. This covers reducing government spending, rearranging subsidies, and implementing a tax system that works better. The establishment of anti-corruption measures and the openness in public spending will make the allocation of the public funds proper and the principle of equality. Infrastructure Development: It will give local businesses the opportunity to enter the international market and compete with goods from other countries. The sector-wide infrastructure initiative that is targeting lowering transport costs and improving market connections will create the spark that will see the key sectors grow and investment flow. Partnerships between the public and private sectors in infrastructure collecting funding and managing projects almost perfectly. Human Capital Development: The education, healthcare, and technical skills need to be invested in to achieve quality and productivity. Ultimately, it is the existence of a skilled and effective workforce that provides the foundation for knowledge sharing and competitiveness. Establishing educational and healthcare opportunities will, in turn, lead to the reduction of poverty and stimulate economic growth. By bringing all the stakeholders together, Zimbabwe can overcome economic challenges and realize its potential. The success of sustainability depends on political willingness, accountable leadership, and effective implementation. References Hlatywayo, G. K., &Mangongera, C. (2020). The challenges for social movements in post-Mugabe Zimbabwe. United States Institute of Peace. Kanyenze, G. (2022). Zimbabwe: The Link Between Politics and the Economy: The Link Between Politics and the Economy. African Books Collective. Kudzai, T. (2023). The Impact of The Zimbabwe Government’s Fiscal Policy on The Destruction of The Country’s Economy. Indonesian Journal of Islamic Economics and Finance, 3(1), 11-18. Makombe, E. K., Kufakurinani, U., &Chimhete, N. (2023). Towards the Zimbabwean Crises. In Zimbos Never Die? (pp. 1-26). Brill. Matambo, M., Moyo, G., Mukonza, R. M., &Chigova, L. E. (2022). Corporate Governance and Credibility Gap: Four Decades of Struggling Reform Efforts in Zimbabwe. African Renaissance (1744-2532), 19(4). Mutenga, M., & Vyas-Doorgapersad, S. (2021). Assessing Economic Policies Towards Socio-Economic Development: Evidence from Zimbabwe. African Journal of Development Studies, 11(3), 147-168. Nkala, S. (2022). Predatory Politics and the Indigenisation and Economic Empowerment Policy in Zimbabwe’s Mining Sector. Africa Review, 14(3), 277-304.

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