SAN MIGUEL, JAMES VINCENT C.

2-BSAIS

ASSESSMENT TASK 2

Analyze the case in Lesson 1. Use the following format.

I. Case Summary
Throughout the trade history of the past centuries, it has said to be that the European
countries has influenced by the African continent with their economic interest. But after the
World War II, Africa remains a continent plagued by a continued combination of factors,
including competing colonial political and economic interests; poor and corrupt local leadership;
war, famine, and disease; and a chronic shortage of resources, infrastructure, and political,
economic, and social will. The continent generates a lot of interest on both the corporate and
humanitarian levels, as well as from other countries. In particular in the past decade, Africa has
caught the interest of the world’s second largest economy, China.
China, which is proven to move hundreds of millions of its people out of poverty by
combining state intervention with economic incentives to attract private investment. But not just
in their country, China brings also its success to the continent of Africa with its project aids.
Since Africa is rich in oil and many other raw materials, Chinese investment has grown
throughout the years and boost the African economy. Hence, the eagerness to access
resources such as oil, diamonds, minerals and commodities, worth of billions of deals has
made. China, then provided loans and the investments was used to build Africa’s roads,
railways, hospitals, schools and even water systems. With oil-backed loans, Africa manage to
finance projects to generate electricity and hydropower as well.
The Export-Import Bank of China (Ex-Im Bank of China) has funded and has provided
these loans at market rates, rather than as foreign aid. While these loans certainly promote
development, the risk for the local countries is that the Chinese bids to provide the work aren’t
competitive. Furthermore, the benefit to local workers may be diminished as Chinese
companies bring in some of their own workers, keeping local wages and working standards low.
However, China has become one of Africa´s important partners for trade and economic
cooperation
Observers note that African governments can learn from the development history of
China and many Asian countries, which now enjoy high economic growth and upgraded
industrial activity. These Asian countries made strategic investments in education and
infrastructure that were crucial not only for promoting economic development in general but also
for attracting and benefiting from efficiency-seeking and export-oriented
Despite the fact that China has clear intention of bringing development in Africa, it is
being accused by some of ignoring human rights crises in the continent and doing businesses
with repressive regime. But the Chinese success in the country sometimes takes credit with the
local political environment wherein the power and decision making are being controlled by the
government.

II. Case Problem

A Chinese business that was operating in Sudan, addresses issues concerning business
ethics and doing business with an oppressive regime. Chinese success in the country
sometimes takes credit with the local political environment wherein the power and decision
making are being controlled by the government.

III. Case Facts

After the World War II, Africa remains a continent plagued by a continued
combination of factors, including competing colonial political and economic
interests; poor and corrupt local leadership; war, famine, and disease; and a
chronic shortage of resources, infrastructure, and political, economic, and social
will
The continent generates a lot of interest on both the corporate and humanitarian
levels, as well as from other countries
Africa has caught the interest of the world’s second largest economy, China.
China brings also its success to the continent of Africa with its project aids
Chinese investment has grown throughout the years and boost the African
economy
China, then provided loans and the investments was used to build Africa’s roads,
railways, hospitals, schools and even water systems. With oil-backed loans,
Africa manage to finance projects to generate electricity and hydropower as well.
The risk for the local countries is that the Chinese bids to provide the work aren’t
competitive. Furthermore, the benefit to local workers may be diminished as
Chinese companies bring in some of their own workers, keeping local wages and
working standards low.
Despite the fact that China has clear intention of bringing development in Africa,
it is being accused by some of ignoring human rights crises in the continent and
doing businesses with repressive regime

IV. Alternative Courses of Action

African governments must learn from the development history of China and many Asian
countries, which now enjoy high economic growth and upgraded industrial activity. China, being
known as the world’s second largest economy, it can surely bring success in to Africa in lifting
their economy as well. Building such infrastructure due to many Chinese investments are a key
factor to diminish the poverty rate in the continent. Africa must then create a sustainable plan in
order to recuperate the current situation they are into- and that is to build a strong foundation of
economy.
V. Evaluation of Alternatives and Solution to the Problem
Customs and traditions may vary from nations to nations. Given that we are strongly
diversified with such laws and business ethics, Africa is a continent of a kind. China must then
learn to adapt with the customs and traditions in order to understand their local laws better. With
understanding comes learning and therefore brought success. However, repression is unethical
so Sudan must also learn to give and take. Business is always a two-way process and the
economy will not grow in just inside the boundaries.

VI. Recommendation

You can manage ethics in your company by assigning a manager to evaluate

how your business activities affect the community, the environment and society at large.
By requiring a social impact report with a profit report, you remind your employees that
your company has citizenship responsibilities. Same thing with the scenario of
international businesses, if the concerns and treaties worked well, the success of both
nations can be achieved.

VII. Conclusion
Dealing with business isn’t a simple thing to do. It requires a lot of effort and hardships.
Trials and failures may come along the way as you face different challenges. But earning with a
clean money and clean conscience is a great thing when doing business, whatever type of
business it is. Either a large or a small type of such, taking bribes is a crime so even if the
government approval is not favorable on your way, you must not fall on doing unethical things.
Instead, continue being eager in digging deeper with the roots of the foundation of the goal you
aimed for.