BA+178+Midterm+exam+Spring+2009+Solutions

BA+178+Midterm+exam+Spring+2009+Solutions - Solutions to...

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Solutions to ugba 178 midterm exam Spring 2009 Part A (40 points, 2 points each) 1. B 11. B 2. A 12. C 3. A 13. A 4. B 14. A 5. D 15. C 6. A 16. B 7. D 17. B 8. B 18. A 9. D 19. B 10. A 20. C Part B (20 points, 10 points each) 1. “Effects of the global economic crisis” Reduction in global trade Reduction in global investment (portfolio and/or FDI) Increased skepticism of the free trade/free market model that has predominated for two decades Increased protectionism Greater (or less?) economic coordination among nations (discuss at least two of the above for full credit) 2. “FDI attractiveness of a host country to MNE’s” Political stability Economic stability and growth Regulatory structure—friendly to business Large domestic market Low wages and/or skilled workforce Investment incentives (discuss at least three of the above for full credit) 3. (Nelda provides)
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Part C (15 points) 1. “Not Exactly Counterfeit” A. Third-shift problem (7 points) The unauthorized over-production of a licensed product which results in
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BA+178+Midterm+exam+Spring+2009+Solutions - Solutions to...

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