University of Alabama in Huntsville

International Business MGT 450

Open Case Exercises
1) Describe Chinas strategy in Africa.
China has managed to bring a lot of people out of poverty by combining state intervention with
economic incentives with the purpose of attracting private investment. (Carpenter, International
business). Moreover, Chinas desire is to bring its success story to the continent of Africa.
Chinas strategy in Africa is a combination between self-interest and desire to apply the lessons
learned from their successful development. China enters into agreements with countries rich in
resources and helps them develop their infrastructure, medical system, education system and
water system. In exchange, is using the resources that Africa has to offer such as oil, diamonds,
minerals and commodities, which are in high demand in China. Therefore, by making
agreements with different countries in Africa, China managed to follow its interests but also to
help these countries develop and prosper. However, their success was also based on the fact that
local political environment in African countries is controlled by small number of leaders that
have the power and the decision-making.
2)If you were the head of a Chinese business that was operating in Sudan, how would you
address issues of business ethics and doing business with a repressive regime? Should businesses
care about local government ethics and human rights policies?
As a head of a Chinese business I would try to discuss with the government officials to come up
with a rational solutions, which could help to reduce the aggressive approach of repressive
regimes, combined with some example of a more realistic approach towards ruling without the
use of force or violence from China. Moreover, discuss some other ways of doing business by
trying to respect the human rights and business ethics and ensure the well being of the citizens or
employees, which in turn will lead to economic growth and prosperity.
Businesses should care about the ethics and human rights policies since their success depends on
the way the local governments operates. Human rights must apply to everybody in order to avoid
situations of infringement of their rights. These unpleasant situations could generate conflicts
that will have a negative impact on the business. All employees, must be treated fairly and
respectfully, therefore avoiding belligerent situations that could develop from mistreating
employees. Moreover, the company should be aware because unfair treatment and chaotic work
environment will badly affect the business.
3. If you were a foreign businessperson working for a global oil company that was eager to get
favorable government approval to invest in a local oil refinery in an African country, how would
you handle any demands for paybacks (i.e., bribes)?
A very clear and transparent contract should be made from the beginning between the oil
company and the government. As an investor, I will be involved in the market from day one.
Even though some local practices accept bribes as a form of sealing the deal this should be
avoided always and found alternative ways that will create a long standing and trustful
relationship. A good approach will be a zero-tolerance policy for any forms of bribes. Instead of
bribes, incentives can be given after certain goals have been achieved and also recommendation
for good progresses. All these should be mentioned clearly in the contract. Therefore, all parties
will be determined to contribute and work towards achieving goals that will benefit them. By
establishing my unwavering stance against corrupt payments I will poise myself to effectively
operate in African markets.(Devex)
Citations:
"International Business: Opportunities and Challenges in a Flattening World, v. 1.0." Flat World
Knowledge., n.d. Web. 19 Jan. 2017
WarrenDenson. " Try to Reason with Government Officials - MGT - 450." Help Come - MGT -
450. N.p., n.d. Web. 23 Jan. 2017.
"Dealing with Corruption in Africa: A Complex Yet Surprisingly Simple Answer." Devex. N.p.,
01 Aug. 2014. Web. 23 Jan. 2017. Https://www.devex.com/news/authors/1017979.