Case summary:
The case deals with the condition of Country V and its economic and political changes under Person HC and Person NM. Both of them were the former presidents of Country V. During the period of Person HC, he made several policies against economic management and corruption. However, Country V was economically weak.
During the year of 2016, an inflation rate of Country V is 741 percent which is the highest in the world. There was a huge lack of basic requirement and food.
To determine: How the unilateral changes of Person HC regarding the contract with foreign oil companies will affect the foreign investment in Country V.
Introduction:
Want to see the full answer?
Check out a sample textbook solutionChapter IC Solutions
INTERNATIONAL BUSINESS-ACCESS CARD
- What type of nation benefits most from countertrade? Why?arrow_forwardWhat types of political risk would a company entering Cuba or Greece face? Why is this an important feature for an international manager to know?arrow_forwardexplain why south africa would want to "back foreign direct investment"arrow_forward
- What 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_forwardTajikistan 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_forwardSaudi Arabia is actively seeking foreign investors and appears to be creating a pro-business atmosphere, what non-oil businesses do you think would be best suited for expanding into Saudi Arabia?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_forwardWhat are common reasons that governments enact export restrictions? Do you think this policy will work? Why or why not? Explain by giving an examplearrow_forwardYou are a senior manager at a U.S. automobile company with the job of deciding whether to invest in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Given your answer here, which country seems to be the most attractive target for foreign direct investment? Why?arrow_forward
- Under Chávez’s leadership, what kind of economic system was put in place in Venezuela? How would you characterize the political system? How do you think that Chávez’s unilateral changes to contracts with foreign oil companies will affect future investment by foreigners in Venezuela? How will the high level of public corruption in Venezuela affect future growth rates? During the Chávez years, many foreign multinationals exited Venezuela or reduced their exposure there. What do you think the impact of this has been on Venezuela? What needs to be done to reverse the trend? 5. By 2016, Venezuela’s economy appeared to be on the brink of total collapse. What do you think needs to be done to reverse this? Expert Answerarrow_forwardIn your view, what is the impact of COVID-19 on foreign direct investment (FDI)? Will it increase or decrease?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