Question 1: List and discuss two emerging trends related to MNEs that will alter their motivations for conducting FDI internationally. Question 2: Answer the following questions: a) What kinds of public policies might national governments consider to

make a favourable investment climate for MNEs and to attract and retain FDI? b) What are the ways in which host governments might restrict inward FDI? Question 3: Answer the following questions: a) Discuss the arguments that favour a floating exchange rate system against a fixed exchange rate system. b) What is a currency board? Why do countries choose this type of system? What are the disadvantages of this type of arrangement? Question 4: What is meant by social contract? Discuss some of the issues related to the current social contract. Is a major rethinking of the current social contract important? Question 5: Discuss the role of government in a domestic economy in light of globalization. Also discuss whether the role of the nation state is diminished in the foreseeable future.