CASE
Case – Doing Business
in Eritrea
Eritrea is in Eastern
Africa. Its size is slightly bigger than the state of Pennsylvania. Eritrea
currently hosts a UN peacekeeping operation that is monitoring a 25 km-wide
Temporary Security Zone on the border with Ethiopia. An international
commission, organized to resolve the border dispute, posted its findings in
2002 but final demarcation is on hold due to Ethiopian objections. Since
gaining its independence from Ethiopia on 24 May 1993, Eritrea has faced the
economic problems of a small, desperately poor country. Like the economies of
many African nations, the economy is largely based on subsistence agriculture,
with 80 percent of the population involved in farming and herding. In 2004, it
took 13.788 nakfa (the Eritrean currency) to get one U.S. dollar, and its per capita
income was equal to 900 U.S. dollars. It has a total of 306 kilometers of
railroad, 874 kilometers of paved roads, and four airports with paved runways.
Its people speak a variety of languages including Afar, Arabic, Tigre and
Kunama, Tigrinya, and other Cushitic languages. The Eritrean society is
generous with whatever resources it has and its people place a high value on
helping others.
1. Refer to the scenario above. Eritrea would be
classified as a(n):
a. risk
aversive nation due to its security zone
b.
cultural oasis given the variety of languages spoken there
c. stable
country for operation
d. LDC
because of low per capita income
e. LDC
because its people are altruistic
ANS:
2. Refer to the scenario above. Having such
limited roads and railways indicates Eritrea has:
a. a
geocentric orientation
b. a high
power distance sensibility
c.
transportation pluralism
d. an
inadequate infrastructure
e. a
growth stabilization strategy
ANS:
3. Refer to the scenario above. Within the
legal-political environment, Eritrea would:
a. be
multicultural
b. be
ethnocentric
c. have an
inadequate infrastructure
d. offer a
political risk
e. have a
pluralistic orientation
ANS:
4. Refer to the scenario above. In terms of the
dimensions that explain cultural differences, Eritrea appears to have a high
degree of:
a. humane
orientation
b.
individualism
c.
ethnocentrism
d.
masculinity
e.
pluralistic
ANS:
5. Refer to the scenario above. The variety of
languages spoken within Eritrea’s sociocultural environment means that the
nation:
a. is
ethnocentric
b. is
geocentric
c. is
likely to have high uncertainty avoidance
d. has
linguistic pluralism
e. is
politically unstable
ANS:
CASECase – Doing Business
in EritreaEritrea is in Eastern
Africa. Its size is slightly bigger than the state of Pennsylvania. Eritrea
currently hosts a UN peacekeeping operation that is monitoring a 25 km-wide
Temporary Security Zone on the border with Ethiopia. An international
commission, organized to resolve the border dispute, posted its findings in
2002 but final demarcation is on hold due to Ethiopian objections. Since
gaining its independence from Ethiopia on 24 May 1993, Eritrea has faced the
economic problems of a small, desperately poor country. Like the economies of
many African nations, the economy is largely based on subsistence agriculture,
with 80 percent of the population involved in farming and herding. In 2004, it
took 13.788 nakfa (the Eritrean currency) to get one U.S. dollar, and its per capita
income was equal to 900 U.S. dollars. It has a total of 306 kilometers of
railroad, 874 kilometers of paved roads, and four airports with paved runways.
Its people speak a variety of languages including Afar, Arabic, Tigre and
Kunama, Tigrinya, and other Cushitic languages. The Eritrean society is
generous with whatever resources it has and its people place a high value on
helping others. 1. Refer to the scenario above. Eritrea would be
classified as a(n):a. risk
aversive nation due to its security zoneb.
cultural oasis given the variety of languages spoken therec. stable
country for operationd. LDC
because of low per capita incomee. LDC
because its people are altruisticANS: 2. Refer to the scenario above. Having such
limited roads and railways indicates Eritrea has:a. a
geocentric orientationb. a high
power distance sensibilityc.
transportation pluralismd. an
inadequate infrastructuree. a
growth stabilization strategyANS: 3. Refer to the scenario above. Within the
legal-political environment, Eritrea would:a. be
multiculturalb. be
ethnocentricc. have an
inadequate infrastructured. offer a
political riske. have a
pluralistic orientationANS: 4. Refer to the scenario above. In terms of the
dimensions that explain cultural differences, Eritrea appears to have a high
degree of:a. humane
orientationb.
individualismc.
ethnocentrismd.
masculinitye.
pluralisticANS: 5. Refer to the scenario above. The variety of
languages spoken within Eritrea’s sociocultural environment means that the
nation:a. is
ethnocentricb. is
geocentricc. is
likely to have high uncertainty avoidanced. has
linguistic pluralisme. is
politically unstableANS:
