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business
international business
Questions and Answers of
International business
=+ Do you think the U.S. position is reasonable?
=+9. Why did the U.S. government decide to reopen the long-running trade dispute between Boeing and Airbus in 2004?
=+ Was Boeing right to make significant concessions to the EU? What might have occurred if the concessions were not made?
=+8. Do you think the EU Commission had a strong case in its attempts to wring concessions from Boeing regarding the merger with McDonnell Douglas?
=+7. Was the threat by EU authorities to declare the Boeing–McDonnell Douglas merger illegal a violation of U.S. national sovereignty?
=+6. In an era of global competition, what is the case for antitrust authorities to permit the formation of large domestic firms through mergers and acquisitions?
=+5. Why do you think that the U.S. industry reacted with caution to attempts by politicians to reopen the trade dispute in 1993?
=+4. Do you think that the 1992 trade agreement was reasonable?
=+3. Is Airbus’s position with regard to the long-running dispute over subsidies reasonable?
=+2. Why do you think the four European governments agreed to subsidize the establishment of Airbus?
=+1. Do you believe Airbus could have become a viable competitor without subsidies?
=+ What other solutions might there be to the problems created by barriers to trade in agriculture?
=+agriculture. So far, however, the talks have made little concrete progress on this issue and as of mid-2007 they are stalled. Why do you think this is the case?
=+4. The current Doha Round of trade talks organized by the World Trade Organization is trying to reduce barriers to free trade in
=+3. Why do you think governments in developed nations continue to lavish extensive support on agricultural producers, even though those producers constitute a very small segment of the population?
=+nations more, increasing foreign aid or removing all agricultural tariffs and subsidies?
=+2. Which do you think would help the citizens of the world’s poorest
=+Do you think the total benefits outweigh the total costs, or vice versa?
=+What would be the impact on the average farmer?
=+1. If agricultural tariffs and subsidies to producers were removed overnight, what would the impact be on the average consumer in developed nations such as the Untied States and the EU countries?
=+5. What would you do if you were John Martin?
=+4. What seems to be the most ethical action?
=+production to Mexico independent of each other?
=+3. Are the economic and social costs and benefits of moving
=+2. What are the social costs and benefits to Martin’s Textiles of shifting production to Mexico?
=+1. What are the economic costs and benefits to Martin’s Textiles of shifting production to Mexico?
=+ What would the costs be?
=+inful winds of change that follow entering into free trade agreements? What would the benefits of costs of protection be?
=+3. With hindsight, do you think it is better to protect vulnerable industries such as textiles, or to let them adjust to the pa
=+2. Who gained from the process of readjustment in the textile industry after NAFTA? Who lost?
=+1. Why did many textile jobs apparently migrate out of the United States in the years after the establishment of NAFTA?
=+4. Why do you think progress towards the liberalization of the EU energy market has been fairly slow so far?
=+3. Why is the deintegration of large energy companies seen as such an important part of any attempt to liberalize the EU energy market?
=+What actions will they have to take?
=+How will the environment they face change after liberalization?
=+2. What are the implications of liberalization for energy producers in the EU?
=+ Who stands to gain the most from liberalization?
=+1. What do you think are the economic benefits of liberalizing the EU energy market?
=+company. Identify the main negotiating groups a country must consider when a member. Choose two negotiating groups and justify their importance to member countries.
=+Exercise 2 Trade agreements can impact the cultural interactions between countries. In fact, the establishment of the Free Trade Area of the Americas(FTAA) can be considered a threat as well as an
=+executive summary describing the features you consider crucial in completing your report.
=+comprehensive source to assist in your project. After evaluating the state of the EU based on the statistics and publications available, prepare an
=+investment is significant and top management wishes to have a clearer picture of the current and probable future status of the EU. A colleague who spent some time living in the EU indicated that
=+Exercise 1 Your company is seeking to expand by opening new customer representative and sales offices in the European Union (EU). The size of the
=+What are the implications for managers of foreign enterprises with substantial operations in Europe?
=+3. What precedent do the actions of the European Commission in this case set?
=+2. Were the concessions extracted by the European Commission from AOL and Time Warner reasonable? Whose interests was the Commission trying to protect?
=+companies, do you think the European Commission had a right to review and regulate their planned merger?
=+1. Given that both AOL and Time Warner were U.S.-based
=+9. Reread the Management Focus case on the European Commission and Media Industry Mergers, then answer the following questions:
=+United States and Canada? How might the establishment of the FTAA impact the strategy of North American firms?
=+8. Would establishment of a Free Trade Area of the Americas (FTAA)be good for the two most advanced economies in the hemisphere, the
=+What problems are hurting MERCOSUR? What can be done to solve these problems?
=+7. After a promising start, MERCOSUR, the major Latin American trade agreement, has faltered and made little progress since 2000.
=+What are the constraints on its ability to respond in a manner that minimizes production costs?
=+several ASEAN countries respond to the creation of a single market?
=+6. How should a firm with self-sufficient production facilities in
=+between WorldCom and Sprint, both U.S. companies, and it carefully reviewed the merger between AOL and Time Warner, again both U.S.companies.)
=+mergers between American companies that do business in Europe?(For example, the European Commission vetoed the proposed merger
=+4. Do you think it is correct for the European Commission to restrict
=+ Given these arguments, why don’t we see more substantial examples of integration in the world economy?
=+2. What are the economic and political arguments for regional economic integration?
=+LO5 Understand the implications for business that are inherent in regional economic integration agreements.
=+LO4 Be familiar with the history, current scope, and future prospects of the world’s most important regional economic agreements.
=+LO3 Understand the economic and political arguments against regional economic integration.
=+LO2 Understand the economic and political arguments for regional economic integration.
=+LO1 Be able to explain the different levels of regional economic integration.
=+Were their objections reasonable?
=+politicians objecting to it. Why do you think they objected?
=+5. The acquisition of Arcelor was very acrimonious, with many
=+4. What are the benefits to Mittal Steel from entering different nations?
=+Are there any drawbacks to a nation when Mittal Steel invests there?
=+3. What benefits does Mittal Steel bring to the countries that it enters?
=+2. Mittal Steel expanded into different nations through mergers and acquisitions, as opposed to greenfield investments. Why?
=+1. What forces drove Mittal Steel to start expanding across national borders?
=+ After using the same resource to evaluate Asian-Pacific countries that are ideal for doing business, which countries will you suggest for developing partnerships and investing venture capital?
=+there. The owner of your company suggests that you prepare a report based on information from the Country Brand Index. How many countries have you identified?
=+Exercise 2 Your venture capital firm is considering a partnership with entrepreneurs in Asian-Pacific countries to make it easier to do business
=+industries represented. Do you notice any common traits from your analysis?
=+largest transnational corporations. Gather a list of the top 10 nonfinancial transnational corporations from southeast Europe and the Commonwealth of Independent States (CIS). Provide a summary of
=+Exercise 1 The World Investment Report published annually by UNCTAD provides quick electronic access to comprehensive statistics on the operations of the
=+and market the computer in Europe, or (c) to set up a wholly owned subsidiary in Europe. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO.
=+how to expand into Western Europe. Your options are (a) to export from the United States, (b) to license a European firm to manufacture
=+computer. Your CEO has asked you to formulate a recommendation for
=+same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design of this
=+4. You are the international manager of a U.S. business that has just developed a revolutionary new personal computer that can perform the
=+ Do you think Indonesia’s best interests were served by limiting Cemex’s FDI in the country?
=+5. Why do you think politicians in Indonesia tried to block Cemex’s attempt to gain majority control over Semen Gresik?
=+ Why is majority control so important to Cemex?
=+4. Why do you think Cemex decided to exit Indonesia after failing to gain majority control of Semen Gresik?
=+3. Cemex has a strong preference for acquisitions over greenfield ventures as an entry mode. Why?
=+2. What value does Cemex bring to a host economy? Can you see any potential drawbacks of Cemex’s inward investment in an economy?
=+1. Which theoretical explanation, or explanations, of FDI best explains Cemex’s FDI?
=+3. Read the Management Focus on Cemex and then answer the following questions:
=+of FDI. Which theory do you think offers the best explanation of the historical pattern of FDI? Why?
=+2. Compare and contrast these explanations of FDI: internalization theory, Vernon’s product life-cycle theory, and Knickerbocker’s theory
=+you think explains this difference in FDI inflows into the two countries?
=+1. In 2004, inward FDI accounted for some 24 percent of gross fixed capital formation in Ireland, but only 0.6 percent in Japan. What do
=+LO6 Articulate the implications for management practice of the theory and government policies associated with FDI.
=+LO5 Be able to discuss the range of policy instruments that governments use to influence FDI.
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