International Business Plan

Case Study – Assignment on the basis of theory andconceptual understanding
Submission date: 27/04/24
This Document has two sections. Section 1 – provides a detailed guideline for marking criteria
and section 2 – Details of the Individual Case Study Assignment.
Section – 1
The following guidelines explains clearly the scheme of marking. Read carefully and work on
the case study – Individual Assignment. Provide references and use intext citation if you are
using external sources of information.
Marking Guidelines:
Grade
A+
A
B+
B
Objective
Conceptual
Understanding
Exceptional
Demonstrates the
Work. This
conceptual
work is original, understanding and
with innovative has ability to
ideas and
link/apply to the
creative
theories, concepts.
thinking
Practical
Implications
You are able to
show the
relevance of this
topic to the realworld business
scenarios/evidence
in international
business
Very Good
Shows the
You are able to
Work. This
conceptual
show the
work is original, understanding and relevance of this
however there is has ability to
topic to the reala scope for
link/apply to the
world business
improvement
theories, concepts. scenarios/evidence
in international
business.
Good Work.
Shows the
You are able to
This work is
conceptual
show the
original.
understanding and relevance of this
has ability to
topic to the reallink/apply to the
world business
theories, concepts. scenarios/evidence
in international
business.
Moderate Work. Indicates the
You are able to
This work is
conceptual
show the
original and
understanding,
relevance of this
doesn’t involve however, there is a topic to the realinnovative ideas room for
world business
Overall Quality
of Writing
Very clear,
concise and to
the point.
Interesting,
innovative and
creative.
Clear, concise
and to the point.
Interesting.
Clear, concise
and to the point.
Moderately
clear, concise
and to the point.
and creative
thinking
C+
C
Normal Work.
This work is
sometimes
original, but
largely drawn
from secondary
sources
D
Weak Work.
This work lacks
original
F
Bad Work.
improving their
ability to
link/apply to the
theories and
concepts.
Moderately
understand the
concepts. Has
limited ability to
link/apply to the
theories and
concepts.
scenarios/evidence
in international
business
moderately.
You are not fully
able to show the
relevance of this
topic to the realworld business
scenarios/evidence
in international
business
Weak in showing
You are not able
conceptual
to show the
understanding and relevance of this
ability to
topic to the reallink/apply to the
world business
real-world
scenarios/evidence
scenarios/evidence in international
business.
Lacks conceptual
Unable to show
understanding
the practical
implications
Sometimes
moderate and
few other times
weak in clearly
writing or
presenting your
responses.
Poor writing
and unclear.
Very careless in
presenting the
work
Section 2
Case Study – Individual Assignment
Pakistan Takes Another IMF Loan
Summary
This case explores the balance of payments crisis in Pakistan that forced the country to accept a
$6 billion loan package from the IMF in 2019. Pakistan’s rising trade deficit forced the country
to use foreign exchange reserves to pay for imports, drawing down the reserves from $19 billion
in 2018 to less than $7 billion in 2019. Pakistan’s rupee was devalued by about 37 percent, but
even with the significant depreciation of the rupee, export sales failed to increase, and inflation
began rising. Without the IMF bailout, Pakistan would have been in serious economic crisis.
Pakistan has resorted to loans from the IMF a dozen times since the early 1980s yet has regularly
failed to meet IMF requirements related to the bailouts. Those conditions have included reducing
government spending, working to resolve the country’s high level of tax evasion, and privatizing
poorly run state-owned enterprises.
Some blame Pakistan’s economic woes on the country’s high military and debt expenses, others
believe that China’s Belt and Road initiative has exacerbated underlying issues in the country.
Whether the country will finally get on track following the most recent IMF loan package
remains to be seen.
Discussion Questions:
Make sure your responses includes references to the theories or concepts learnt or your own
experiences by observations of reading or following global business news or insights gained
from your work related interactions (overall – minimum 2500 words). Each question carries 5
marks.
1. Pakistan seems to have persistent economic problems. Why do you think this is the case?
2. What are the conditions attached to the current IMF bailout designed to achieve? If
implemented correctly, do you think they will improve Pakistan’s finances?
3. The U.S. dollar exchange rate fell from $1 = 142 rupees to $1 = 163 rupees in the immediate
aftermath of the IMF bailout deal being announced. What is the likely impact of this currency
devaluation of the Pakistani economy on businesses and country. Discuss the most prominent
ones (three to four).
4. Given that Pakistan has already had 12 prior IMF bailouts, what confidence do you have that
this bailout will produce the desired results? Should the IMF continue to give funds to countries
like Pakistan that seem unable to solve their structural economic problems?
5. The Chinese Belt and Road initiative has resulted in Pakistan being heavily indebted to China.
Does China have an obligation to help Pakistan here?
6. Why do rescue packages of this nature matter to an international business doing business in
the country, or considering doing so?
Hints
Understand the IMF’s response to the situation in Pakistan. How has the country fared since the
initial loan payments related to the 2019 bailout package? Has the situation gotten better or worse?
Is the IMF still making loans to Pakistan? If Pakistan once again defaults on the conditions attached
to the loan, should the IMF provide future loans to the country? Finally, examine foreign direct
investment trends in the country and discuss the implications of those trends.
You may refer to Chapter PPTs.