MAC 2023

INTRODUCTION TO INTERNATIONAL BUSINESS (IBM530)

ASSIGNMENT 2: INDIVIDUAL CASE STUDY
TOTAL MARKS: 20%

For the purpose of the case study, students are given a case (please refer Appendix 1). The case is
related to International Business. Student is required to analyze the issue and to write a report. The
report must have the following:

1.0 Analysis of the case

 Discuss the main problems stated in the case.
 Discuss the main impacts resulted from the problems (if any).
 Discuss the solutions or action taken to solve the problems (if any).

2.0 Conclusion
 State the summary of key findings from the analysis of the case.
 Give opinions or comments based on the case. The opinions can be related to relevant
theories and concepts.

Submission Date: SEMINAR 3 (21 May 2023)

Instructions:-

The report needs to be written in essay format. The maximum number of pages is four (please
read below). The report must be in Arial or Times New Roman, 11-point font and 1.5 line spacing. All
pages must have page number.

All reports need to undergo similarity check (plagiarism) before submission.

Students need to submit the report using Google classroom (or email etc).

The structure of the report:

1. Cover page (write in one page) (please refer Appendix 2)

2. Analysis of the issue (write in one or two pages)
3. Conclusion (write in one page)
4. References

Prepared by: Syed Ashrene Syed Omar @ FPP

 MAC 2023

Appendix 1

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 with 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 (ZANIJ) 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 which 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 "fast-track" land reform program that encouraged
the 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.

Another drag on the country's growth was the 2008 Indigenization 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 s 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 I 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.

Prepared by: Syed Ashrene Syed Omar @ FPP

 MAC 2023

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 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 hat Zimbabwe has
enormous potential for sustained economic growth liven its generous endowment of natural
resources, its existing stock of infrastructure, and comparatively skilled human resources. Attaining
that potential will require a change in leadership and policies.

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 6th. 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.

Sources: "Will Emmerson Mnangagwa Be Better than Robert Mugabe?" The Economist, November
30, 2017; "How Robert Mugabe Ruined Zimbabwe," The Economist, February 26, 201 7; 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.

Prepared by: Syed Ashrene Syed Omar @ FPP

 MAC 2023

Appendix 2

Cover page:
Font: Arial 14 only

UNIVERSITI TEKNOLOGI MARA

INTRODUCTION TO INTERNATIONAL BUSINESS

(IBM530)

ASSIGNMENT 2: INDIVIDUAL CASE STUDY

PREPARED FOR:
SYED ASHRENE SYED OMAR

PREPARED BY:
NAME STUDENT NUMBER

NBI3A

MAC - AUG 2023

Prepared by: Syed Ashrene Syed Omar @ FPP