Guide Questions:

1) Describe China’s strategy in Africa.

Answer:

The strategy for China seems to be to use the resources that Africa has in its hands

from the small groups that control parts of the continent in order to fund themselves as

well as help increase revenue for the countries that allow them to do so. But at the same

time they seem to try and help the country by supplying necessities in order to help those

unable to help themselves (i.e. small civilizations with schools, hospitals, and electricity)

to help them get to a sustainable level like China.

China is helping to develop Africa in return for resources that they use to further

build their companies. They make agreements with governments, whether they are

oppressive regimes or not. They mainly care about gaining a foothold in the nation and

using it to expand their resources.

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?

Answer:

We would try to reason with government officials to help come to reasonable

solution as well as try to supply some means in order to decrease the size of the

aggressive regimes. Businesses should absolutely care because their success depends on

the local governments and how well they succeed and progress in the area. Without it

they would have terrible outputs as well as danger to their company with their

investments dwindling down because of unfair treatment and chaotically damaging

surroundings.

Businesses ethically should care about local government ethics and human rights

policies. However if the business isn't held to follow these government ethics and human

rights policies, they can exploit these situations for large gains. What is important is for a

company to hold themselves up to their own code of ethics.

 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)?

Answer:

The best thing seems to be to come to a full way agreement with settlements with the

government as well as the oil company. Not trying to bribe seems like a bad solution, but

that will only hinder the progress that you have with the company because it could end up

biting you at the end of the day. We think a contract with frequent pay loads for each

advanced stage may be best rather than the bribe systems with a split of profits going to

whoever contributed to the finding and success of oil increase. The more oil found the

better the split and government help may more with security and land providing to find

more oil.

Bribes are not ethical. Any attempt to bribe the company, should be refused. Again,

what's important is for a company to hold themselves up to their own code of ethics.

I. Case Summary

Many foreign companies have been doing business in Africa for so many years despite that

Africa still have competing colonial, political, and economic interests, poor and corrupt local

leadership, war, famine, and disease, chronic shortage of resources, infrastructure, and political,

economic and social will. European countries promote and preserve their economic interest

throughout the African continent.

On the other side, China, the world's second largest economy has entered the Africa's

territory. The China's economy grew by combining state intervention with economic incentives

to attract private investment.

They do business in Africa by providing loans for infrastructure projects with Chinese

companies managing the project. That loan is secured by Africa's natural resources such as oil,

diamonds, minerals, and commodities and even cocoa beans.

 This business is beneficial for both countries because China has expanded its business

territories and Africa has improved its infrastructure and economy as well and they can learn

some business techniques and development history of China. Even if there are some issues

arising, still, China is one of the key investor in Africa for the foreseeable future.

II. Case Problem

How will the African government can develop their economic growth and upgrade their

industrial activity without China's taking advantage of them is terms of having a repressive

regime to a business and underemployment of their local worker. And the dilemmas of Africa in

his status quo between China.

III.Case Facts

 Africa is 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 Africa generates a lot of interest on both the corporate and humanitarian

levels, as well as from other countries.

 Trade between the African continent and China reached $106.8 billion in 2008, and over

the past decade.

 Africa has caught the interest of the second largest economy which is China.

 China has entered into arrangements with resource-rich countries in Africa for a total of

nearly $14 billion in resource deals alone.

 Over the past few years, China has become one of Africa´s important partners for trade

and economic cooperation.

 Trade (exports and imports) between Africa and China increased from US$11 billion in

2000 to US$56 billion in 2006.

 The ability of China to forge a government-level partnership has enabled its Chinese

businesses to have long-term investment perspectives in the region of Africa.

  China hosted a summit in 2006 for African leaders, pledging to increase trade,

investment, and aid over the coming decade.

 The 2008 global recession has led China to be more selective in its African investments,

looking for good deals as well as political stability in target countries.

IV. Alternative Courses of Action

Africa is devastated by many contagious and rare diseases. Since China is famous for their

medicinal products and practices, Africa can ask China to offer them health care services or

make an joint exploration to battle those illnesses that plague their countries in exchange of the

oil reserves or environmental resources. Africa can also ask for agricultural products like rice

and other food products in China to overcome the scarcity of food to fight the rapid growth of

malnutrition in their countries.

In addressing the underemployment issues in African countries, their government must enter

investment which will give prioritize to economic growth and will provide jobs and opportunities

to their own countrymen. They must be strict in allowing foreign companies to bring their own

manpower which steals the chance of Africans to uplift their own lives. They must also higher

tax rate for the companies that benefits from their environmental resources, so they can use the

budget to other beneficial projects of their government.

V. Solution and Recommendation

VI. Conclusion

Chinese export credit in Africa challenges many commonly held beliefs about how aid ought

to be distributed. The transparency example throws up two key ethical questions analysed here;

the ethical value of transparency itself and whether these values can be applied across different

cultural settings. There is a strong case to be made that these projects should be seen within a

specific cultural setting and judged solely by the good that they create, a case which would

vindicate the current investment strategies of the Chinese government. However, arguments for

cultural relativity should not be used to shield potentially corrupt financial agreements in an
international setting, nor can the good that comes from these projects justify the manner with

which it is achieved. By treating transparency as an assurance of ethical outcomes, it is possible

to justify the value transparency brings to international development financing and in turn show

how the status quo of Chinese investment is failing to guarantee the best ethical outcomes.