1. Briefly summarize the case:
• John Baker, English expatriate and the chief engineer of the Caribbean Bauxite Company of Barracania in the West Indies, conducted an interview with Matthew Rennalls – a Barracanian and who is also Baker’s assistant and successor.
• Matthew Rennalls was very racial conscious; his four years studying at London University made him sensitive to any sign of condescension on the part of expatriates.
• Matt Rennalls would be taking over John Baker’s position once he left the company to go work as a production manager of Keso Mining Corporation in Canada.
• Baker accused Rennalls of racism towards Europeans after receiving complaints from his co-workers in addition to noticing this behavior himself.
• Baker conducted an interview with Rennalls which lead to accusation of Rennalls being racist in an indirect method.
• Rennalls composed a letter of resignation the very next day after Baker conducted the interview.

2. Identify Key Facts:
• Baker believes he has a knack of dealing with people of color, which can be attributed to his 23 years of work experience of working in developing countries.
• Despite the fact that the company has more Barracanian managers than Europeans, some Barracanian feel that the company has unjust partiality towards the Europeans.
Rennalls was one of the brightest Barracanian prospects on the staff of Caribbean Bauxite.
• Rennalls wanted nothing to do with Baker and the rest of his people (Europeans) after feeling so disgusted with the acquisitions and the imply a poor Barracanian cannot match the knowledge of modern living is only 50 years old whereas his goes back to 200 or 300 years.
• Rennalls racial consciousness had a deep root

3. Relevant Principles from Course
• Cultural diversity: Being attentive to the culture values and norms of the foreign country you are operating in is very important in addition to the culture values and norms of your employees.
• Have the ability to integrate with different people, cultures, and types of business organizations.

4. Critical Problems and Issues
• Rennalls political involvements and family background indicated that Rennalls is sensitive to anything European expatriates said or done
• Baker’s arrogance, poor people management and communication skills have added more fuel to the flaming fire.
• Due to various cultural differences between the Barracanian and the Europeans, employees’ racial tension was always present in the working environment.
• Despite the fact that the company has more Barracanian managers than Europeans, some Barracanian like Rennalls and his father feel that the company has unjust partiality towards the Europeans.
• Misunderstand between people with different nationalities and cultures. Baker made a huge mistake by conducting his interview from his own European perspective.

5. Key Learning about International Business
• In order to gain success in a business, management must be open to diverse cultures, have open and flexible minds, and be able to deal with high degrees of stress appropriately.
• Most of the time, perception out rules the real truth

6. Recommendations Conduct better cultural trainings at the company for managers covering the sensitivity to the fine print of differences in culture, politics, religion, and ethics, in addition to i