Assignment: Case 3
covers each point in section (1-2-3-4-5-6-7) at below. Also, covers each point in rubric because is very important to I get the high degree. In addition, using business brief format. (Please find attached). Moreover, please looks at the end in these pages (The Global Financial Crisis and Protectionism)
To assess your ability to apply the concepts from this week.
In MBA 727, you will display your ability to apply the concepts from the overview through case study analysis. Each week, you will read a case and complete a case analysis. You are not to answer the questions at the end of the case. However, the questions should help you formulate where your thinking should be taking you during your analysis.
Your case analysis is to contain the following sections:
Section 1: Provide a general description of the company.
Section 2: Define the central issue of the case.
Section 3: Define the company’s goals.
Section 4: Identify the constraints of the problem.
Section 5: Identify all the relevant alternatives.
Section 6: Select the best alternative and provide a justification for the selection. Note: there is no right answer but it is about how you justify your selection based on international business theory.
Section 7: Develop an implementation plan.
1.Review the grading rubric (below) for this assignment.
2.Read the case at the end of Chapter 7 in International Business.
3.Write a 3- to 4-page case analysis with section headers using a business brief format. Review the Business Brief Guidelines in the MBA Toolbox to assist you in the proper formatting of your paper. Cite resources as appropriate to support your findings.
4.Submit your paper to turnitin.com.
5.Read the originality report and modify your paper as needed. This may include adding proper citations or better paraphrasing.
Upload your assignment using the Submit tool.
•See the Grading Rubric for specific details : 0 – 90 points
Case Analysis Rubric
Total 90 points
Describes the company.
Accurately describes the company and demonstrates solid ability to accomplish the assignment.
Defines the central issue of the case.
Accurately defines the central issue of the case and demonstrates solid ability to accomplish the assignment.
Defines the general goals of the company.
Accurately defines the general goals of the company and demonstrates solid ability to accomplish the assignment.
Identifies the constraints of the problem.
Accurately identifies the constraints of the problem and demonstrates solid ability to accomplish the assignment
Identifies all the relevant alternative solutions.
Accurately identifies all the relevant alternative solutions and demonstrates solid ability to accomplish the assignment.
Selects the best alternative and justifies the selection.
Selects the best alternative and justifies the selection and demonstrates solid ability to accomplish the assignment.
Develops an implementation plan for the selected solution.
Develops an implementation plan and demonstrates solid ability to accomplish the assignment.
Integrates established international business principles into the discussion.
Consistently does a good job of integrating established international business principles into the discussion
Synthesizes relevant information and materials to provide evidence of critical thought.
Consistently and effectively synthesizes information, which provides strong support to main ideas.
Considered holistically, demonstrates the ability to write at the graduate level.
Considered holistically, the student demonstrates a proficient ability to write at the graduate level.
Standard Format for a Business Brief in the MBA Program
Business Writing Style: A business brief should be written using a “low-context” style of communication*. A business brief is direct (to-the-point) and presents relevant information to the reader. You want to avoid a conversational style of writing.
* communications should be straightforward, concise, and efficient in telling what action is expected
Students in the MBA program are expected to adhere to the following when completing a business brief.
1. 12-point Serif font (Times New Roman or Courier).
2. Single-spaced within paragraphs; double-spaced between paragraphs.
3. Paragraphs are to be left justified.
4. 1-inch margins at the top, bottom, left, and right of every page.
5. No title page.
6. Place important points or details into lists. The paragraphs provide context for the lists.
7. Phrases not to use in a business brief, unless, you have been asked/hired to specifically provide a recommendation:
• I think…
• I believe…
• I feel…
• In my opinion,…
8. Phrases to use or something similar in a business brief that are appropriate in any analytical discussion:
• The data shows…
• Research studies point out…
• The analysis indicates…
• Studies demonstrate…
• Forecast indicates…
9.Complete sentences, correct grammar, correct spelling, and accurate punctuation is expected.
10.Absence of typographical errors
11.Citations within the body of the text follow APA format. Note: Citations are not always required. However, you must include a reference list so the reader knows from where you are deriving your information.
12.Reference list (if necessary) starts on a new page and follows proper APA format.
13.Images, graphs, charts, or other types of visuals are considered to be figures in APA format and must adhere to proper APA formatting.
Follow the business brief layout below:
Header: approximately 1/8 of the business brief
Opening, Context and Task: approximately 1/4 of the business brief
Summary, Discussion Segment: approximately 1/2 of the business brief
Closing Segment, Necessary Attachments: approximately 1/8 of the business brief
CLOSING CASE Chapter 7
The Global Financial Crisis and Protectionism
Two facts have characterized international trade between 1986 and 2007. First, the volume of world trade grew every year, creating an increasingly interdependent global economy, and second, barriers to international trade were progressively reduced. Between 1990 and 2007 international trade grew by 6 per cent annually compounded, while import tariffs on goods fell from an average of 26 per cent in 1986 to 8.8 per cent in 2007. In the wake of the global financial crisis that started in the United States in 2008 and quickly spread around the world, this changed. As global demand slumped and financing for international trade dried up in the wake of tight credit conditions, so did the volume of international trade. The volume of world trade fell by 2 per cent in 2008, the first decline since 1982, and then slumped a further 12 per cent in 2009. This contraction is alarming because past sharp declines in trade have been followed by calls for greater protectionism from foreign competition as governments try to protect jobs at home in the wake of declining demand. This is what occurred in the 1930s, when shrinking trade was followed quickly by increases in trade barriers, mostly in the form of higher tariffs. This actually made the situation far worse and led to the Great Depression. Much has changed since the 1930s. Treaties now in place limit the ability of national governments to raise trade barriers. Most notably, World Trade Organization rules in theory constrain the ability of countries to implement significant increases in trade barriers. But WTO rules are not perfect and there is plenty of evidence that countries are finding ways to raise barriers to international trade. Many developing countries have latitude under WTO rules to raise some tariffs, and according to the World Bank, in 2008 and 2009 they were doing just that. For example, Ecuador raised duties on 600 goods, Russia increased import tariffs on used cars, while India placed them on some sorts of steel imports. According to the World Bank, however, two-thirds of the protectionist measures taken in 2008 and 2009 were various kinds of “non-tariff barriers that are designed to get around WTO rules.” Indonesia, for example, specified that certain kinds of goods, including clothes, shoes, and toys, can be imported only through five ports. Since these ports have limited capacity, this constrains the ability of foreign companies to sell into the Indonesian market. Argentina has imposed discretionary licensing requirements on a range of goods including car parts, textiles, and televisions. If you can’t get a license, you can’t sell into Argentina. China has stopped a wide range of imports of food and drink products from Europe, citing safety rules and environmental concerns, while India has banned imports of toys from China for safety reasons. Developed nations in general did not take similar actions, but they sharply increased subsidies to troubled domestic producers, which gave them an advantage against unsubsidized international competitors, and therefore may have distorted trade. The key example of this in 2008 and 2009 was the automobile industry. To protect national producers, hold on to jobs, and stave of bankruptcies, rich countries including the United States, Britain, Canada, France, Germany, Italy, and Sweden gave over $45 billion in subsidies to car companies between mid-2008 and mid-2009. The problem with such subsidies is that they could cause production to switch from more efficient plants to less efficient plants that have an advantage due to state support. Although the WTO has rules against trade-distorting subsidies, its enforcement mechanisms are weaker than in the case of tariffs, and so far countries that have been increasing subsidies have not been challenged. The volume of international trade has since re- bounded strongly, growing by around 14.5 per cent on the back of a 3.1 per cent increase in the size of the global economy in 2010. As this happened, protectionist pressures abated somewhat. Trade rebounded more strongly in developing nations than in the developed world. China, in particularly, saw a massive 28.5 per cent leap in the volume of its exports, which created additional trade tensions.
Case Discussion Questions
1. Why do you think calls for protectionism are greater during sharp economic contractions than during boom periods?
2. Despite the sharp economic contraction during 2008–2009, the increase in protectionist measures was fairly modest. Why do you think this was the case?
3. During 2008–2009 many developed nations gave subsidies to their automobile producers. How might this have distorted international trade? Was this a reasonable thing to do given the circumstances?
4. What might occur if a renewed economic slow- down triggered a wave of protectionist measures around the world? Would protectionism actually protect jobs, or would it make things worse?
5. The volume of world trade rebounded sharply in 2010 on the back of a fairly modest growth rate in the world economy. What does this tell you about the nature of international production in today’s global economy? What does this tell you about the vulnerability of the world economy to any future trade wars?