Answer the following questions

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C1

4-“Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Evaluate this statement.

5- How do the Internet and the associated World Wide Web affect international business activity and the globalization of the world economy?

C2

1- Free market economies stimulate greater economic growth, whereas state-directed economies stifle growth. Discuss.

C3

2- You are a senior manager in a U.S. automobile company considering whether to invest in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate the benefits, costs, and risks associated with doing business in each nation. Which country seems the most attractive target for foreign direct investment? Why?

C5

1- A visiting American executive finds that a foreign subsidiary in a poor nation has hired a 12-year-old girl to work on a factory floor, in violation of the company’s prohibition on child labor. He tells the local manager to replace the child and tell her to

go back to school. The local manager tells the American executive that the child is an orphan with no other means of support, and she will probably become a street child if she is denied work. What should the American executive do?

C6

3- Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they of- ten characterize as “unfair” import competition. Is such competition “unfair”? Do you think that this argument is in the best interests of (a) the unions, (b) the people they represent, and/or (c) the country as a whole?

7- Drawing upon the new trade theory and Porter’s theory of national competitive advantage, out- line the case for government policies that would build national competitive advantage in bio- technology. What kinds of policies would you recommend that the government adopt? Are these policies at variance with the basic free trade philosophy?

C8

4- You are the international manager of a U.S. United business that has just developed a revolutionary to manufacture new personal computer that can perform the Europe, or same functions as existing PCs but costs only subsidiary in half as much to manufacture. Several patents of each protect the unique design of this computer. Your action to CEO has asked you to formulate a recommendation for how to expand into Western Europe.

Your options are (a) to export from the States, (b) to license a European firm facture and market the computer in (c) to set up a wholly owned Europe. Evaluate the pros and cons alternative and suggest a course of your CEO.

C9

6- How should a firm with self-sufficient production facilities in several ASEAN countries respond to the creation of a single market? What are the constraints on its ability to respond in a manner that minimizes production costs?

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