1-2) Globalization. Define globalization. What forms of globalization
are of greater interest to the business person? What forms are of
greater interest to the general person? Explain differences in the two
lists.
1-6) Impact of Technology. “Technology and innovation inevitably
lead to globalization.” Support this statement by providing at least two
recent examples.
1-9) Trade Theory. Most theories of trade do not explain why a country
might simultaneously export and import the same product. For
instance, the US is simultaneously an exporter and importer of
airplanes. What theory explains this phenomenon?
1-11) Location Theory. Using theories of industry agglomeration
explain (a) the location of business process (human resources,
accounting, etc.) outsourcing firms in Bangalore, India and (b) the
location of financial services firms in NY City.
1-13) MNC Risks. “MNCs face greater risks than purely domestic
firms.” What are some of the arguments supporting and disproving this
statement?
1-15) Centralization vs. Decentralization. Are most MNCs
centralized or decentralized? What are some pros and cons of
choosing one organizational form over another?
Extension 1) Bilateral Trade between Developed Nations
In 2005, U.S. exports to Ireland were valued at $9 billion, while
Irish exports to the U.S. totaled $28 billion. The range of U.S.
exports includes electrical components and equipment,
computers and peripherals, drugs and pharmaceuticals, and
livestock feed. Irish exports to the United States represent
approximately 20% of all Irish exports, and have roughly the
same value as Irish exports to the UK . Exports to the United
States include alcoholic beverages, chemicals and related
products, electronic data processing equipment, electrical
machinery, textiles and clothing, and glassware. Irish exports to
the United States from January to September 2006 rose by 7%
compared to the same period in 2005, while Irish imports from
the United States from January to September 2006 fell by 14%
compared to the same period in 2005.
Use theories of international trade to explain this bilateral
trade relationship. In your opinion is this a large volume of
trade?
Extension 2) Bilateral Trade and Entities.
Mexico is among the world’s most open economies,
but it is dependent on trade with the U.S., which
bought about 82% of its exports in 2007. Top U.S.
exports to Mexico include electronic equipment, motor
vehicle parts, and chemicals. Top Mexican exports to
the U.S. include petroleum, cars, and electronic
equipment.
Does this list provide clues about the types of
entities conducting cross-border trade between
the US and Mexico? Explain.
Extension 3) Bilateral Trade between Developed and Developing
Nation.
Peru registered a trade surplus of $8.8 billion in 2006.
Exports reached $23.7 billion, partially as a result of high
mineral prices.
Peru’s major trading partners are the U.S., China, EU,
Chile and Japan. In 2006, 23.0% of exports went to the
U.S. ($5.9 billion) and 16.0% of imports came from the
U.S. ($2.9 billion).
Exports include gold, copper, fishmeal, petroleum, zinc,
textiles, apparel, asparagus and coffee. Imports include
machinery, vehicles, processed food, petroleum and steel.
Peru belongs to the Andean Community, the Asia-Pacific
Economic Cooperation (APEC) forum, and the World
Trade Organization (WTO).
Uses theories of trade to explain this data.
