Final Exams

Ministry of Higher Education

Colleges of Applied Sciences

Business Administration Program

Final Assessment - Semester Spring 2020

Following fill by the Lecturer:

Course Code :	BUSN3401
Course Title:	International Business Environment (SET A)
Student’s ID Number:
Student’s Name:
Sending Date & Time:	On 3rd May 2020 @ 12 noon
Sending through:	CAS Mail / Black Board …….
Submission Week:	Week 17
Submission Date and Time:	Starting from 8 am 16th May 2020 and ending at 4 pm 21st May 2020
Marks Scored:
	20

Following fill by the Student:

Date & Time of submission :	On ….May 2020 @ ….
Submitting through :	CAS Mail/ Black Board ………..

Instructions for completion of Final Assessment:

1. Your Name, ID and Set number should be written on each page.

1. All questions should be answered compulsorily.

1. The assignment should be handwritten on ruled paper with only 1 question on 1 page.

1. Do not write for multiple questions on one page.

1. The question number and its sub part (if any) should be written clearly.

1. You should write the answers on your own and not copy others’ work.

1. The answers to questions should be in your own words and not copied from the book or other sources. After reading the case study, you are expected to develop your own arguments for each question asked , based on your own critical reflection, as well as reading and discussion in the class rooms and blackboard

1. Note that your answers should neither match with other student(s) nor with any other source. Furthermore, like in all other individual/group assignments, copy and paste is not expected as it is acceptable in your own language only

1. You can click the photos of the completed assignment or you can paste the photos in order on a word document and send the document on blackboard safe assign for your respective set - This option is open -You can choose either of them as per your convenience

1. You need to upload the completed assignment on blackboard for Final Assignment as per your respective sets

1. The assignment will be available from Sunday (3. May.2020) by 8 am on blackboard/email.

1. The submission of assignment shall start from 8 am- 16th May 2020 and will end at 4 pm - 21st May 2020 (Week 17).

1. Late Assignment submission shall not be accepted.

Case Study - Answer ALL Questions

(4 x 5 marks = 20 marks)

Case Study 1

Khazaen Attracts First GCC Investment

 25/02/2020 Oman Observer

Successfully positioning itself as the preferred place of investment for regional and international companies, Khazaen Economic City (Khazaen) has signed its first GCC investment with Saudi Arabia’s Al Watania Al Khalijyah for Paper Products.

The project is considered as Oman’s first-of-its-kind carton plates manufacturing unit with an initial investment of RO2 million. The planned facility will occupy an area of 10,000m2 within the light and medium industrial zone in Khazaen with construction to be completed by end of this year.

Al Watania Al Khalijyah for Paper Products is an affiliate of Al Watania for Industries Company (Al Watania), which is ranked among the top 100 companies in the Kingdom Saudi Arabia. The agreement was signed in Muscat by Khalid Awadh al Balushi, CEO of Khazaen and Eng Ibrahim bin Ibrahim Behairi, CEO of Al Watania.

“Today we have achieved a significant milestone for Khazaen as we are delighted to sign with our first GCC investment with Al Watania for Industries to develop the first carton plate manufacturing unit in Oman.

This confirms the trust that Khazaen is gaining from local and international investors due to its attractive location, swift access to various logistics gateways across the country and Oman’s investor-friendly climate in general,” Khalid Awadh al Balushi, said. He further asserted, “With the signing of the RO2 million project with Al Watania for Indu8stries, which is one of Saudi’s leading companies and ranked among top 100 industrial companies in KSA, we aspire to attract more inwards investments from GCC countries in general, and from Saudi Arabia in particular, as this will not only bring more industrial knowhow to the Sultanate, but also it will create promising job opportunities for the Omani youth.”  Eng Ibrahim Behairi, CEO, Al Watania said: “The Sultanate of Oman is known to be an investment-friendly country. Thus, we are confident that our investment in establishing the first factory affiliated to Al Watania to produce carton plates in Khazaen will be a great added value for both parties. We plan to allocate 60 per cent of the factory’s production capacity to meet local demand, while exporting the rest to regional markets.”

Eng Behairi added, “The options and advantages offered by Khazaen along with its strategic location have been important factors for us to choose this promising economic city. We are certain that through this project, we together can contribute to the growth of inter-GCC investments.” Khazaen is Oman’s most recent integrated economic city being developed over a 51.6 million m2 land in Barka, South Batinah Governorate. The City is strategically located near the capital city of Muscat, is only 30 minutes from Muscat International Airport and around two hours from Sohar Port.

Khazaen will be linked through the proposed railway project in the future, making it an ideal location with multimodal transport options. Khazaen is the ideal logistics, warehousing, light industrial and commercial hub linking the main modes of transportation in and out of Oman. The new integrated economic city will be the home of Oman’s first dry port, besides multi-mix residential units, entertainment facilities, retail outlets, international schools and modern healthcare centres which will offer all residents a community where they can efficiently conduct business, work, live and play. The project has embarked upon the implementation of the first phase of development to provide more than 3 million sqm of leasable land.

Questions:

1. What are the benefits of the investment of Saudi Arabia’s Al Watania Al Khalijyah for Paper Products brings to the host economy? Explain. (5 marks)

2. To what extent can Porter’s Diamond help explain reliability of Khazaen as a place of investment for carton plates manufacturing unit? Discuss. (5 marks)

Case Study 2

Customs Changes, Tariff Reduction Among Measures Responding to COVID-19

Monday, March 30, 2020

Sandler, Travis & Rosenberg Trade Report

Countries around the world are taking a variety of measures to ensure adequate access to and supplies of medical goods to deal with the COVID-19 pandemic. A recent Congressional Research Service report examines some of these actions, including the following.

Imposing Export Restrictions. The European Union has introduced measures that prohibit the export of personal protective equipment (e.g., masks, protective glasses, and garments) without prior regulatory approval. India has restricted exports of 26 pharmaceutical components as well as medicines and vitamins made from them. Dozens of other countries have also imposed export restrictions to address potential supply shortages. The U.S. has generally not supported such measures, but it is unclear whether they are inconsistent with World Trade Organization rules or may qualify for one of the available exceptions regarding critical shortages of essential products, protection of human life, or national security.

Reducing Tariffs. The U.S. has removed some of its Section 301 tariffs on medical goods from China, but the Trump administration has come under pressure to remove or suspend others as well. The report points out that Congress could potentially do this itself since it has the constitutional authority to “lay and collect duties.” Another option would be for the administration to permit duty-free imports of food, clothing, and medical, surgical, and other supplies for use in emergency relief work under Section 318 of the Tariff Act of 1930.

Revising Import Procedures. Most countries regulate imports of medical goods for public health and safety reasons, but some have taken steps to streamline their customs procedures to address issues that could delay access to medical goods. For example, China created a “green lane” system that prioritizes the inspection and review of imported medical goods. Similarly, the EU recently introduced guidelines instructing its member states to create “green lanes” for freight transport to ensure access to essential products such as medicines and medical equipment.

The U.S. has not yet publicly proposed amending its customs or other regulatory procedures in response to the COVID-19 pandemic. However, U.S. Customs and Border Protection may be able to create a “green lane” system using its congressional authorization to develop and implement screening and targeting capabilities, including prioritizing of passengers and cargo. The report notes that creating such a system may require CBP to complete a rulemaking process, which could take time, but that Congress could consider using its constitutional authority to regulate foreign commerce to more quickly implement new customs prioritization procedures.

Prioritizing Domestic Production. Many countries import more health-related products than they export. As an alternative to reliance on cross-border supply chains, the U.S. and some of its trading partners have sought to prioritize domestic production of necessary goods, either by requiring manufacturers to complete orders of medical goods before orders of non-medical goods or by imposing increased production requirements on these manufacturers. Such measures may be permitted under WTO rules provided (a) they are not unlawful subsidies (e.g., those that harm the industries of other WTO members) under the WTO Agreement on Subsidies and Countervailing Measures or (b) if they are potentially WTO-inconsistent, they fall within an exception.

Questions:

1. What do your understand of the term ‘green lane’ as mentioned in the paragraph? What will happen if the ‘green lane’ system is not being applied in this time of COVID-19 pandemic? Explain. (5 marks)

2. In this case, why do you think most countries in the world are introducing custom changes and tariff reduction? Have these changes in trade policies helped the countries’ economy or created even bigger barriers for trade. Discuss. (5 marks)

Write your answer below:

( Page 3 )Business Administration Program Final Assessment Semester Spring 2020