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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
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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: 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.
