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International Business Questions

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International Business questions per week

Chapter 1 Discussion Question The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in smaller firms." Do you agree or disagree? Why?

Chapter 2 Discussion Question A democratic political system is an essential condition for sustained economic progress. Do you agree? Why?

Chapter 3 Discussion Question Does culture of a country influence the costs of doing business in that country? Why or why not?

Chapter 4 Discussion Question CLOSING CASE: Etch-A-Sketch Ethics


The closing case describes the decision by Etch-A-Sketch to move its production from Ohio to China. In the 1990s, Etch-A-Sketch, the maker of the popular drawing board, was faced with a sluggish toy market and strong pressure to keep prices low. Consequently, the company made the unpopular decision to outsource production. Discussion of the case can be based around the following questions:

Was it ethical of the Ohio Art Company to move production to China? What were the economic and social costs and benefits of this decision? What would have happened if production had not been moved?

Chapter 5 Discussion Question Drawing upon the new trade theory and Porter's theory of national competitive advantage outline the case for government policies that would build national competitive advantage in a particular industry. What kind of policies would you recommend that the government adopt? Are these policies at variance with the basic free trade philosophy?

Chapter 6 Discussion Question Whose interests should be the paramount concern of government trade policy - the interests of producers (businesses and their employees) or of consumers?

Chapter 7 Discussion Question Reread the opening case on Toyota. Drawing upon internalization theory, explain Toyota's decision to invest in U.S. production facilities, as opposed to exporting cars from Japan to the United States.

Chapter 8 Discussion Question

NAFTA has produced significant net benefits for the Canadian, Mexican, and U.S. economy. Discuss.

Chapter 9 Discussion Question

You are CFO of a U.S. firm whose wholly owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over

the next year. What actions, if any, should you take?




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