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Posted: December 31st, 2022

“The Decline of Zimbabwe”

Learning Outcomes:

Identify and evaluate the significant trade agreements affecting global commerce (Lo 1.1)
Identify the major components of international business management (Lo 2.4)
Analyze the effects of culture, politics and economic systems in the context of international business (Lo 2.1)
Explain the forces driving and evaluating the impact of globalization (Lo 1.3)
Carryout effective self-evaluation through discussing economic systems in the international business context (Lo 3.1)

Discussion Questions

Discuss the economic reasons for government intervention in markets. (minimum words: 200, marks:2) There are several economic reasons why governments may choose to intervene in markets:

Market failure: Governments may intervene in markets to address situations where the market is not functioning efficiently or equitably. This can include situations such as externalities, where the actions of one market participant have negative consequences for others who are not compensated.

Income redistribution: Governments may intervene in markets to redistribute income and wealth from high-income individuals and businesses to low-income individuals and households. This can be done through progressive taxation and transfer programs.

Stabilization of the economy: Governments may intervene in markets to stabilize the economy by using fiscal and monetary policies to smooth out business cycles and reduce fluctuations in economic activity.

Protection of consumers: Governments may intervene in markets to protect consumers from deceptive or predatory business practices, or to ensure that goods and services are safe and meet certain quality standards.

Promotion of competition: Governments may intervene in markets to promote competition by regulating monopolies and limiting anti-competitive practices.

National security: Governments may intervene in markets to ensure the security of the country, such as through regulations related to defense contracting and critical infrastructure.

It’s important to note that while government intervention in markets can help address various economic problems, it can also have unintended consequences and may not always be the most effective solution.
Describe the five-step process that businesses can use to think through ethical problems. (minimum words: 400, marks: 3)
Why has Zimbabwe’s economic performance been so poor? Discuss. (minimum words: 400, marks: 3)
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)
Discuss the steps needed to be taken now to improve the economic outlook for Zimbabwe? (minimum words: 400, marks: 3)

Case study

Please read Case 2: “The Decline of Zimbabwe” available in your e-book (International business: Competing in the global marketplace (13th ed.), at page no.627, and answer the following questions:

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