Case summary:
This case points out the economic impact of political disturbance in Country U and International Monetary Fund’s (IMF) role in reestablishing the stability. The president of Country U has restricted on the trade deals with the Country E’s union to strengthen political ties with Country R. Later, the civil war has led to an economic collapse.
IMF has offered two loans to Country U for creating economic stability in 2014 and 2015. Even additional supports from Country US and Country E’s union was expected to promote
To discuss: The reason why the president walked away from a trade agreement with the Country E union and regarding its gain and loss on this action.
Trending nowThis is a popular solution!
Chapter IC Solutions
International Business: Competing in the Global Marketplace
- What are common reasons that governments enact export restrictions? Do you think this policy will work? Why or why not? Explain by giving an examplearrow_forwardWhat were the conditions under which a group of Asian countries initiated Chiang Mai Initiative Multilateralization (CMIM)? Using the game theory framework to analyze objectives of CMIM set by the involved countries. From the international policy collaboration perspectives, why did the idea of AMF face so many obstacles to be possibly realized?arrow_forwardIn return for aid from EU institutions, nations like Greece and Italy had to agree to O A. increase employment O B. lower economic controls O C. austerity measures O D. leave the EUarrow_forward
- In your view, what is the impact of COVID-19 on foreign direct investment (FDI)? Will it increase or decrease?arrow_forwardWas the removal of the Multi-Fiber Agreement a positive thing for the world economy? Why? As a producer in a developing nation such as Bangladesh that benefited from the MFA agreement, how should you respond to the expiration of the agreement?arrow_forward• Do you agree or disagree with Adam Smith that we are better off with some form of free trade, then would be the case if each country raised or lowered tariffs based on its own economic needs and political philosophy? Give a reason for your answer.arrow_forward
- Tajikistan is one of five Central Asian countries that were formerly part of the Soviet Union. Tajikistan is one of the poorest of these countries, with less than 7% of its land available for cultivation. Tajikistan became an independent nation in 1991 as the result of the dissolution of the former Soviet Union. The shift in its status from being a member of a totalitarian republic to an independent nation brought with it certain challenges. Basic public services (e.g., health care, water supply, and sewer systems), previously guaranteed for even the poorest nations in the Soviet Union, were no longer supported through the Soviet cost-sharing system. Financial hardships and inadequate tariffs in Tajikistan severely limited provision of services and maintenance of equipment. Faulty design and installation of equipment while Tajikistan was still part of the Soviet Union added to these problems. To make matters worse, shortly after becoming an independent nation, Tajikistan experienced a…arrow_forwardWhat was Ghana trying to achieve with its post-independence policies toward international trade? Why did these policies not have the intended effect?arrow_forwardWhat do you see as the “dark side” of deregulation, in terms of business ethics? - Do you think the recent increase in regulation is effective in helping prevent another global financial meltdown? Why or why not?arrow_forward
- 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. One of those guerrilla movements, the Zimbabwe African National Union (ZANU), was headed by Robert Mugabe, who aligned himself and his movement with the…arrow_forward2. Explain IMF and its objectives, how Pakistan can get rid from IMF?arrow_forwardShould Least-developed countries (LDCs) utilize Bilateral Investment Treaties (BITs) or Free Trade Agreements (FTAs) as the main instrument to enhance their bilateral investment activities and to attract more FDIs from their trade partners? Why?arrow_forward
- BUSN 11 Introduction to Business Student EditionBusinessISBN:9781337407137Author:KellyPublisher:Cengage LearningEssentials of Business Communication (MindTap Cou...BusinessISBN:9781337386494Author:Mary Ellen Guffey, Dana LoewyPublisher:Cengage LearningAccounting Information Systems (14th Edition)BusinessISBN:9780134474021Author:Marshall B. Romney, Paul J. SteinbartPublisher:PEARSON
- International Business: Competing in the Global M...BusinessISBN:9781259929441Author:Charles W. L. Hill Dr, G. Tomas M. HultPublisher:McGraw-Hill Education