1.Chapter 1: Globalization1.Describe the shifts in the world economy over the past 30 years. What are the implications ofthese shifts for international businesses based in Great Britain? North America? Hong Kong? 2.“The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms.” Evaluate this statement. 3.How have changes in technology contributed to the globalization of markets and production?Would the globalization of production and markets have been possible without these technological changes? 4.“Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Evaluate this statement.5.How does the Internet affect international business activity and the globalization of the world economy? 6.If current trends continue, China may be the world’s largest economy by 2030. Discuss the possible implications of such a development for a.the world trading system b. the world monetary systemc.the business strategy of today’s European and U.S.-based global corporationsd.global commodity prices 7.Reread the Management Focus on Boeing and answer the following questions: a.What are the benefits to Boeing of outsourcing manufacturing of components of the Boeing 787 to firms based in other countries? b.What are the potential costs and risks to Boeing of outsourcing? c.In addition to foreign subcontractors and Boeing, who else benefits from Boeing’s decision to outsource component part manufacturing assembly to other nations? Who are the potential losers? d. If Boeing’s management decided to keep all production in America, what do you think the effect would be on the company, its employees, and the communities that depend on it? e.On balance, do you think that the kind of outsourcing undertaken by Boeing is a good thing or a bad thing for the American economy? Explain your reasoning.2.Chapter 6: International Trade Theory1.Mercantilism is a bankrupt theory that has no place in the modern world. Discuss. 2.Is free trade fair? Discuss!3.Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as “unfair” import competition. Is such competition “unfair”? Do you think that this argument is in the best interests of a.the unions, b. the people they represent, and/orc.the country as a whole?4.What are the potential costs of adopting a free trade regime? Do you think governments should do anything to reduce these costs? What?
5.Reread the Country Focus “Is China Manipulating Its Currency in Pursuit of a Neo-MercantilistPolicy?”a. Do you think China is pursuing a currency policy that can be characterized as neo-mercantilist?