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business
introduction global business

Questions and Answers of Introduction Global Business

Why is the FTAA largely considered a failure?
What achievements do CAFTA supporters point to as evidence of its success?
What achievements do NAFTA supporters point to as evidence of NAFTA’s success?
After reviewing the two sides of the debate over whether the EU should be just an economic union or also a political union, state your opinion on the issue and explain your reasons.
What are the advantages and disadvantages of the EU’s adoption of the euro?
Referring to Figure 8.3 as needed, name and describe the fi ve main types of regional economic integration.
What is one possible negative outcome of regional integration?
In what ways are the benefi ts of regional economic integration similar to global economic integration?
Describe two outcomes of the failure of the Doha Development Agenda.
What are the six main areas of concern for the WTO?
Brie y summarize the history of the WTO.
List two disadvantages of global economic integration.
Name and describe three compelling economic benefi ts of global economic integration.
What skills might a manager need to develop to devise strategies for managing currency risk?
What concepts must a savvy manager understand to be considered literate about foreign exchange?
Devise your own example of a way a fi rm might engage in currency hedging.
Why is the strength of the American dollar important to the rest of the world?
Which do you think is a better policy to adopt: a oating exchange rate or a fi xed rate?
Name and describe two ways nonfi nancial companies can cope with currency risks.
Name and describe the three primary types of foreign exchange transactions made by fi nancial companies.
Describe the IMF’s roles and responsibilities.
Why did the gold standard evolve to the Bretton Woods system? Then why did the Bretton Woods system evolve to the present post-Bretton Woods system?
How is the phenomenon of capital ight an example of the bandwagon effect or herd mentality?
What is the difference between a oating exchange rate policy and a fi xed exchange rate policy?
What is the relationship between a country’s current account balance and its currency?
How would you describe the theory of purchasing power parity (PPP)?
Brie y summarize the six major factors that in uence foreign exchange rates.
What qualities should a savvy manager consider when evaluating a particular location for FDI?
What process could a manager use to evaluate the merits of FDI for any given situation? How would that work?
Brie y summarize how the “three Cs” in uence negotiations between MNEs and host countries.
Of the two primary costs of FDI on a home country, which is the more prominent?
Describe two benefi ts and two costs of FDI on a host country.
Brie y explain how FDI can be used to overcome high transaction costs and prevent market failure.
In oligopolistic industries, what two advantages often prompt rivals to imitate a leading fi rm that has entered a foreign country through FDI?
Devise your own example of agglomeration that demonstrates your understanding of the concept.
Describe at least two of the three reasons fi rms may choose FDI over licensing.
What is the primary benefi t of ownership?
Why do market imperfections (or market failure) exist? What are some examples?
Brie y summarize each of the three OLI advantages.
What distinguishes an MNE from a non-MNE?
Devise an example that demonstrates your understanding of upstream and downstream vertical FDI.
Why is it necessary for business people to monitor and participate in political activity concerning international trade?
What are some of the factors managers might need to consider when assessing the comparative advantage of various locations around the world?
What are some of the contemporary debates that affect international trade theories and policies?
Do you agree with economist Paul Krugman that international trade is not about competition? Explain your answer.
Summarize the four political arguments against free trade.
What are the two primary economic arguments that critics use against free trade?
Devise your own examples that demonstrate your understanding of tariff and nontariff barriers.
Is it possible for all of a country’s resources to be completely mobile? Why or why not?
How is the concept of opportunity cost related to the theories of absolute advantage and comparative advantage?
Brie y summarize the three classical theories of international trade.
International trading is quite complex, so why do nations routinely engage in this activity?
How would you characterize strategic foresight?
After reviewing the arguments for and against offshoring, state your opinion on this issue.
How do complementary assets and social complexity in uence a fi rm’s organization?
Why is imitation diffi cult?
Which is more diffi cult: imitating a fi rm’s tangible resources or its intangible resources?
How does the rarity of a fi rm’s resources and capabilities affect its competitive advantage?
Redraw Figure 4.4, add defi nitions to each of the four terms.
Using Figure 4.3, explain the meaning of commoditization.
Explain the difference between primary activities and support activities in a value chain.
Describe the three types of intangible resources and capabilities.
Describe the four types of tangible resources and capabilities.
Describe the three phases that lead to cultural intelligence.
Explain the concept of cultural intelligence using at least two examples from Table 3.6.
In general, how do collectivists typically behave toward in-group members and out-group members?
Explain the concept of cross-vergence.
How is Western capitalism viewed by two major sets of Eastern values, Islam and Confucianism?
What was Max Weber’s view of the connection between Protestantism and capitalism?
Give an example of a proactive strategy to an ethical challenge that demonstrates your understanding of the concept.
What might be the outcome if several fi rms within an industry decide to adopt the same accommodative strategy to a shared ethical challenge?
Explain the difference between a reactive strategy and a defensive strategy when dealing with an ethical challenge.
How would you defi ne corruption in a business setting?
Name and describe Thomas Donaldson’s three guiding ethical principles.
What is the difference between ethical relativism and ethical imperialism?
Give three examples of how your own personal ethics might be re ected in a fi rm’s code of conduct.
Describe the differences among the fi ve dimensions of Hofstede’s framework for classifying cultures.
Name and describe the three systems for classifying cultures by clusters.
What is the difference between a low-context culture and a high-context culture?How would you classify your home country’s culture?
Name two major components and three minor components of a country’s culture.
Using Figure 3.3, identify the four major religions in the world and where they are distributed geographically.
What language is considered the lingua franca of the modern business world?Why?
Where do informal institutions come from, and how do they lead to ethnocentrism?
If formal constraints are unclear or ineffective, what else can managers use to reduce uncertainty?
Why should managers guard against a herd mentality?
Generally speaking, what is the result of strong, effective, market-supporting formal institutions?
Which do you think offers a more accurate measure of political risk: one based on perception or one based on political and regulatory structures? Explain your answer.
Explain path dependency, how a country’s present choices are often constrained by earlier choices.
Describe two contrasting examples of market transitions.
Our current system of intellectual property protection stems from what early patent law?
Which economic system is the most common and why?
Name and describe the three economic systems.
What is TRIPS?
Name three types of intellectual property, and explain how they could be used in business.
Name three types of economic property, and explain how they could be used in business.
Give an example of how theocratic law affects daily business operations.
Describe the differences among the three types of legal systems.
How does political risk affect global business?
Name and describe the four types of totalitarianism.
What fundamental aspect of democracy is relevant to the effective conduct of global business?

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