Introduction to International business (Case Study Sample)

Introduction to International Business (MGT-321) Student’s name Institutional Affiliation Course Professor’s name Date Introduction to International Business (MGT-321) 1 Discuss the economic reasons for government intervention in markets. Governments may decide to intervene in markets for a variety of economic reasons, including the following: Failure of the market to distribute resources effectively or to produce unwanted results, such as insufficient delivery of public goods or environmental contamination, are examples of market failure. Government intervention can assist in resolving these issues and encouraging more effective and equitable solutions. Income and wealth redistribution: To address income and wealth inequality, governments may engage in the market through progressive taxation or transfer programs. Economic stabilization: During periods of recession or inflation, governments may employ interventionist policies to maintain economic stability. For instance, they might utilize monetary or fiscal policy to increase demand or lower inflation (Remmer,1986).  Protection of the home industry: To shield domestic sectors from foreign competition, governments may impose tariffs, quotas, or other trade restrictions. Inefficiency and higher pricing for consumers may result from this, but it may also encourage employment and economic progress. Governments may become involved in the market to encourage competition and stop the growth of monopolies or oligopolies, which can result in higher costs and less innovation. Consumer protection: By implementing restrictions on the food and drug industries and consumer protection laws, governments can safeguard consumers against unfair or dangerous business practices (Reich,1979).  Overall, promoting efficiency, equity, stability, and consumer protection are the economic justifications for governmental market intervention. The proper balance between government intervention and market dynamics is frequently argued about since intervention can potentially have unexpected repercussions. 2 Describe the five-step process that businesses can use to think through ethical problems. The five-step process is a systematic method corporation may use to work through ethical issues. It aids in the identification, analysis, and responsible resolution of ethical difficulties. It entails the following actions: The first stage in the process is to identify the ethical issue or problem that the company is experiencing. This may entail realizing that a certain course of action or choice may affect stakeholders or contradict moral standards or ideals. Therefore, it is crucial to take the time to comprehend the nature of the issue, as well as any potential effects and effects on various parties. (Power-deFur, 2022). Collect pertinent data: After a problem has been found, the following stage is to collect as much data as possible regarding the situation. This might entail conducting research, speaking with stakeholders or experts, or analyzing pertinent laws and regulations. To properly comprehend the problem and its possible effects, it is crucial to collect a variety of views and points of view. Carefully Examine the Issue and understand what the issues may be in order to have a better insight to the problem. Assess the available choices: After the issue has been fully comprehended and pertinent data has been acquired, the following stage analyzes the various possibilities accessible for resolving the situation. This may entail balancing the advantages and disadvantages of each alternative, taking into account the possible risks and rewards for various stakeholders, and assessing the viability and practicality of each option. This can be done through brainstorming and everyone in the team can give their thoughts on the solution. This can assist in knowing the pros and cons of different solutions. Make a choice: Choosing how to solve the ethical issue comes after carefully weighing all available possibilities. This may entail selecting the most ethical choice or weighing the pros and disadvantages of many ethical factors. In addition, the decision's long-term effects and influence on various stakeholders must be considered. Communicate and put the decision into action: Once a choice has been reached, it is crucial to ensure that it is successfully communicated to all appropriate parties. This might entail working with outside parties, creating new rules or processes, or training personnel. Additionally, it's critical to keep an eye on the decision's efficacy and be ready to adapt as needed. Overall, the five-step process of thinking through ethical difficulties is a systematic and structured method that aids organizations in recognizing and handling moral problems in an open and accountable way. Businesses may ensure that they are acting morally, in accordance with their beliefs, and taking into account the interests of all stakeholders by adhering to this approach. 3 Why has Zimbabwe’s economic performance been so poor? Discuss. Mugabe had constrained his political rivals and gradually increased his control over the Presidency. General election, like many throughout Mugabe’s reign, was viewed as being manipulated, with him being re-elected as president in 2013. The country has also grappled with widespread corruption. Zimbabwe was just recently included on Transparency International's list of the 10 most corrupt countries in the world. The situation started to worsen after Mugabe implemented a "fast-track" policy and institutional that instructed the government to seize the land of white farmers without compensating for them. At the period, several white farmers contributed to the country's thriving agricultural sector. ZANU-PF party and other Mugabe loyalists were granted the land, despite needing to gain farming expertise and being unfamiliar with contemporary agricultural techniques. Agricultural productivity plummeted after the land reform initiative, and the nation is now a net food importer. Another obstacle to the country's growth was the 2008 Indigenization and Economic Empowerment Act, which authorized enterprises operating in Zimbabwe to always have 51 % citizen ownership. In reality, the phrase was regularly used to refer to senior ZANU-PF party officials. Several international businesses operating in the nation withdrew once the measure was passed. However, private companies are still mining large platinum and diamond resources. Thus the country's mining industry is still potentially lucrative. However, it is believed that army officers and ZANU-PF officials have taken practically all of the licensing fees owed to the state. Private businesses face hefty taxes and tariffs, which deter the development of new ones, while state-owned businesses receive substantial subsidies. As poaching and deforestation have destroyed Zimbabwe's wildlife, tourism, long a significant source of income, has suffered. As economic activity declined, the nation's shape and the unemployment rate rose to the roof. HIV infection rates in Zimbabwe reached 40% of the population in 1998, leaving the country severely hit by the AIDS pandemic. Due to AIDS and other health problems, life expectancy dropped from 61.6 to 43.1 in 17 years. Life expectancy had returned to 54 years by 2014, with an HIV prevalence rate of only 15%. This means that most of the people could not work to sustain the economy meaning economic decline and poor performance in the long run. The collapse in tax revenue may be the biggest cause of the economic decline and poor performance. Because of the corruption in the nation, the tax revenue is instead funneled into the coffers of the president's select group of devoted allies. Mugabe printed money to pay for government initiatives as tax revenues plummeted. As the inflation soon spiraled out of control and reached 231,000,000%, the Central Bank issued a 100 trillion Zimbabwean dollar note! In April 2009, the Zimbabwean dollar was withdrawn. In particular, the US dollar, the South African rand, the euro, and the British pound were allowed for trade by Zimbabwe 4 Do you think Zimbabwe’s economic performance would have been better under a different system of government? Which one? Explain your reasoning. Zimbabwe's economic performance may have been more successful under a different style of government. One alternative would have been a democratic, free-market system. Zimbabwe's economic difficulties have been largely attributed to the government's extensive interference in and control of the economy. Government policies that have promoted economic mismanagement and corruption have frequently been put into places, such as the land reform program, which resulted in the confiscation of farms owned by white people and the printing of exorbitant sums of money to pay for government spending. (Kurtz,2004) These measures negatively impact foreign investment, inflation, and the nation's agricultural output. A democratic, free market system, however, would have promoted greater economic competition and private sector involvement. Additionally, it would have reduced the likelihood of corruption and offered checks and balances on governmental authority (Tomasi,2012). This might have led to more effective and efficient economic policies, which would have enhanced economic performance. When the country does away with the corrupt and takes power away from the few, and gives it back to the people through democracy may aid the growth of the country. Furthermore, when there is a democracy, the country's resources are well distributed, and some economic benefits will be enjoyed by all rather than the few ZANU-PF loyalties. Furthermore, more access to foreign commerce and investment would have been possible under a democratic, free-market economy. Zimbabwe's uncertain political and economic environment has made it difficult to attract foreign investment...