Question 1: FDI

You are the Director of Global Compliance for a U.S. company that just created a revolutionary new portable personal computer (PPC) that is half the size of a laptop, performs the same functions as existing laptop computers but costs only half as much to manufacture. Several patents were filed and approved protect the unique design of this computer. Your CEO asked you to formulate a recommendation for how to expand into South America. Your options are (a) to export from the United States, (b) to license a South American firm to manufacture and market the computer in South America, or (c) to set up a wholly-owned subsidiary in South America. Evaluate the pros and cons of each alternative, and suggest a course of action to your CEO.

Question 2: Regional Economic Integration

Select one of the following trade agreements. Discuss the costs and benefits for the agreement selected. Use scholarly sources to support your answer.

• NAFTA
• CAFTA
• U.S. - Colombia Trade Promotion Agreement
• U.S. Bahrain Free Trade Agreement

Note: The Office of the U.S. Trade Representative is a good place to start your research,