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mauveeel954Lv1

28 Sep 2019

Governments get involved in the international flow of trade and foreign direct investment and regional economic integration is also influencing international business. Identify two market entry modes, and explain how each might be affected by the actions of governments and by increasing regional integration.

*8Needs to be min 100 words**

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Chika IlonahLv10

28 Sep 2019

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2. Throughout the 1990s, the amount of foreign direct investment directed at both developed and developing nations increased dramatically. This trend reflects:

	a slowdown in global economic activity.
	the increasing share of the U.S. in the total FDI stock.
	the decline in cross-border flows of foreign direct investment.
	the increasing internationalization of business corporations.

3. Globalization is criticized because it increases the power of _____.

	governments to own enterprises
	unskilled labor to form labor unions
	supranational organizations over nation-states
	nation-states to regulate markets and reduce competition

4. Which of the following is NOT a consequence of the reduction in trade barriers and restrictions on FDI since 1950?

	Firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality.
	The economies of the world's nation-states are becoming more intertwined.
	Nations are becoming more independent of each other for important goods and services.
	The world has become significantly wealthier since 1950.

5.A common law system is different from a civil law system because:

	a common-law system is based on religious teachings, while a civil law system is based on cultural traditions.
	a common-law system is very rigid, while a civil law system tends to be more flexible.
	in a common law system, a judge relies on legal codes to make rulings, while in a civil law system a judge relies on his intuition and moral reasoning to make judgments.
	in a common law system, a judge has the power to interpret the law, while in a civil law system a judge has the power only to apply the law.

7. Which of the following areas of international trade is regulated by the Foreign Corrupt Practices Act?

	Making and performing commercial contracts in international trade.
	Preventing bribery and unethical acts in the conduct of international business.
	Establishing a set of safety standards to which a new product must adhere.
	Controlling the mafia activity that hinders trade in Russia, Japan, and the U.S.

8. Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations?

	Gross national income
	Human Development Index
	Purchasing power parity
	Gross domestic product

9. According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

	Detailed state planning
	Restricting direct investment by foreign enterprises
	Strong property rights
	Market regulation

10.Which of the following refers to the extent to which individuals can move out of the strata into which they are born?

	Caste stratification
	Class system
	Social mobility
	Individual potential

11.Which of the following is an example of ethnocentrism?

	A manager in India looks down upon his subordinates because they are from a lower caste, compared to him.
	An upper-middle-class woman talks rudely to a salesperson because she looks down upon individuals belonging to the working-class.
	An American manager criticizes the cultural practices of Saudi Arabia when he is sent there on business because it differs from his own cultural norms.
	A French business owner, who plans to expand his market to China, conducts a detailed cultural study of China to customize his marketing campaign.

13An international U.S. based company sets up a production unit in a developing country with poor environmental regulations. This contributes to:

	the noblesse obliges the situation.
	the inequity aversion.
	the global tragedy of the commons.
	the Friedman effect.

mauvefox717

Problem Scenario
Covid-19 global economic pandemic has negatively affected economies as a whole at the global,
national and regional levels. The novel effects of the fluidity of Covid-19 appears to continue to
have negative impacts on the macro business model as the global recession seems to be inevitable.
You are working as a macroeconomist in economic affairs in your local country, and you are tasked
with analyzing the impact of Covid-19 on the economy and you are required to prepare notes on
what specific government policies can be implemented as a stimulus package to jump-start the
economy savings and investment market. The team meeting will be held in 3 days from the date
of the assignment and because of limitation of time the Chief economist has given you the
following guidelines:
(a) You are required to identify four (4) key macroeconomic issues from the impact of Covid-19,
(b) For each issue identified in (a) explain in detail what specific government policy/ies would you
implement
(c) For each government policy/ies identify in (b) what would be the rationale for your choice of
policy
(d) Your answer should be accompanied by relevant diagrams.
[Total marks 60 marks.]

apricotgoldfish921

With the heavy focus on trade with China, it may be surprising to discover that Canada is the USA's largest trading partner. Perhaps it is not the amount of trade between the US and China that is such a great concern as much as the growth of the trade, the corresponding imbalances, and China's currency valuations.

The yuan renminbi is the official currency of China. It has been historically fixed and controlled by the Chinese government, but that may be changing. As China becomes a greater global exporter and economic powerhouse, critics are claiming that the currency is being undervalued and manipulated in an attempt to protect domestic markets. There are additional levels of complexity impacting China as the nation must deal not only with the economic competition but also internal political and social pressures. As China continues to loosen capital controls, there is fear that the government may lose control of inflation and interest rates, thereby causing a great deal of labor and social unrest, while negatively impacting China's competitive advantages. There are currently platforms in place to increase the circulation of the yuan, but those platforms are currently limited and severely restricted.

China is a leader in international world trade, a major exporter, and currently holds the largest foreign exchange reserve in the world. The nation has one of the highest GDPs in the world and is increasing its economic power. Is it fair for China to fix its currency by undervaluing it on the market? How does keeping its exchange rate undervalued give it a favorable position in international trade? What about from the viewpoint of consumers?

Why is the Chinese government hesitant to open the yuan to market forces to determine its value (floating exchange rate) inside and outside of China?

We often talk about manufacturing and goods related to trade with China. What information can you find on trade in services between the two countries?

ochrecrow336

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