trade.doc - Student Name_Ritu Tamang Student ID_2019010892...

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Student Name: ___Ritu Tamang________ Student ID: _2019010892_________ MID-SEMESTER EXAMINATION PART B & C SEMESTER 1, 2020 OPEN BOOK Unit: TBUS600 – INTERNATIONAL TRADE AND INVESTMENT Date: 8 – 10 /05/2020 Time Allowed : Exam paper will open at 9:00 am Friday 8 th May 2020 and remain open till 11:55 pm Sunday 10 th May 2020 Total Marks: 90 Marks (18%) Instructions: 1. The question paper is in word format to enable you to download and answer on this paper, please do not make any changes in the questions on the question paper . You can only make space below the questions for your answer . 2. Write your name and student ID on the top section provided. 3. Students are required to answer the questions as instructed in each part. 4. Don’t just copy & pest from books, google or Wikipedia to answer the questions. Your answer should be in your own words. 5. Do not separate the pages and no part of this exam paper is to be removed from the examination paper. 6. This is an open book exam. 7. Any attempt to cheat, copy or help a fellow student will be considered a breach of examination policy. 7. The completed exam paper must be submitted on the submission folder set on Moodle via Turn-it-in for similarity checking This Paper consists of 3 pages 1
Part B: Short answer questions (40 marks). Answer any TWO (2) questions out of FOUR (4). Each question is of equal value. Question B1. Read the case study below carefully, then answer the questions below the case study: Case study: Nike production in China The US sportswear company Nike have had a sizeable number of factories based in China for many years. Although the headquarters is based in Oregon, USA, the company has over 700 shops worldwide, offices across 45 countries and over 700 contract factories with nearly 1 million workers across 50 countries. Nike has been working in China for over 30 years when they started to sub-contract production to overseas factories. At present there are around 146 factories in China employing 189,000 workers. Nike make a large variety of products in factories across China. These factories provide valuable jobs to the workers although the wider implications of these factories can sometimes help and hinder development in China. End of Case Study Answer the following questions: B1. (a) Explain how can Nike help development in China? (10 marks) B1. (b) Discuss how can Nike hinder development in China? (10 marks) Question B2. B2. (a) Critically discuss the theory of absolute advantage and the theory of comparative advantage in international trade. (10 marks) B2. (b) Explain why import quota is much more effective than import tariff in controlling imports. (10 marks) 2
Question B3. Critically discuss why foreign direct investment (FDI) is preferable than exporting and licensing? (20 marks)

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