1. What are the essential arguments for and against free trade? What is your opinion on the
There are many pros and cons for and against free trade between countries. Some people who are
for free trade believe that free trade increases sales and pr
Is it possible for comparative advantage to change, and thus change the direction
The comparative advantage of is always changing. Companies are constantly attempting to
gain an advantage over the rest of the competition in the world. With th
Discussion Question Week 2: Quotas
What is a Quota? What kind of products does the USA have a Quota on?
A quota is a government-imposed trade, restriction that limits the number, or in certain
cased the value, of goods and services that can be impor
Discussion Question Week 3: FDI
What is Foreign Direct Investment (FDI)? Can you give an example of each?
FDI is an investment made by a company or entity based in one country, into a company or
entity based in another country. An example of FDI wou
Discussion Question Week 4: Spot and Forward Transactions
Chapter 11 introduces some new terms. What is a spot transaction? What is a forward
A spot transaction is a foreign exchange in which each party promises to pay a certain amount
Discussion Question Week 4: Appreciation and Depreciation
What does it mean for the U.S. dollar to appreciate?
Appreciation of the U.S. dollar means the dollar is getting more valuable when compared with
other currencies, and that can have a direct
Discussion Question Week 4: Micro-Finance
What is Micro-Finance? How does this help small business owners in developing
Micro-Finance is the supply of loans, savings, and other basic financial services to the poor. It is
also a general te
Discussion Question Week 2: Workforce USA
6.6 million People in the current workforce are aged 65 and older. 5.9 million People in the
current workforce are aged 16 to 19 years old. This is the first time since 1950 that older
Americans have outnumb
Seminar Three: Monday Homework
1. What are the typical ways in which multinational enterprises have diversified their
Multinational enterprises have definitely been diversifying their operations. When
multinational enterprises decid
Discussion Question Week 3: Advanced and Developing Countries
What is the difference between Advanced Countries and Developing Countries? Can
you find a list of each?
Advanced Countries are countries which provide free, healthy, and secured atmosphe
Discussion Question Week 3: Export-Led Growth
What is Export-Led Growth? Does it seem to promote economic growth? Why or why
Export-Led Growth is an economic approach that many developing nations attempt to put in
place to modernize their socie
Discussion Question Week 2: Foreign Trade Zone
What is a Foreign Trade Zone (FTZ)? What is the advantage of a FTZ? What is/are the
Foreign-Trade Zones (FTZ) are secure areas under U.S. Customs and Border Protection (CBP)
Discussion Question Week 5: China Workforce
How large is Chinas workforce?
In China, the working age population between the ages of 16-59, as of 2014, fell to 915.8
million, down 3.7 million from the end of the 2013 year (Chinas Workforce, 2015).
Discussion Question Week 3: Euro Zone
What is the Euro Zone? How many countries are in the Euro Zone?
The Euro Zone is a geographical and economic region that consists of all the European Union
countries that have fully incorporated the Euro as thei
Discussion Question Week 5: OPEC
Which currency is used the most worldwide? Which currency is used 2nd most often? Does
this surprise you? Why or why not?
The U.S. dollar is the most widely used worldwide, the European Euro is the 2nd, and the 3rd m
Discussion Question Week 5: OPEC
What is OPEC? When was OPEC formed? How much of the worlds oil reserves does
OPEC, also known as the Organization of the Petroleum Exporting Countries is a permanent
intergovernmental organization of oi
Discussion Question Week 5: Rates
What is a fixed exchange rate system? What are the advantages of this type of currency
A fixed exchange rate regime under which the government or central bank ties the official
exchange rate to an
Discussion Question Week 6: Time Lags
Your textbook lists 5 types of time lags associated with a change in currency depreciation
and appreciated on the bottom of page 437. Which of these time lags do you think affects
currency value the most? Why?
Discussion Question Week 6: U.S.
Do you think other countries should honor a U.S. patent?
Yes, I believe other countries should honor the U.S. patent. There is numerous international
business deals occurring, and if the U.S. patent is not supported,
Seminar 5: Friday Project
1. What are the factors that underlie a nations decision to allow its currency to be
determined by free market forces or to be fixed against some standard of value?
Small developing nations tend to peg their currencies
Seminar Five: Policy Debate
Assume a country is open to free trade. In order to maximize the stability and gains from
foreign trade, which economic factors should a country consider in deciding the most
appropriate exchange rate system to use?
Seminar Five: Saturday Homework
1. What are the pros and cons of multiple exchange rates? Which nations are most
likely to use them and why?
Multiple exchange rates help alleviates excess pressure on foreign reserves when
a shock hits an econom
Discussion Question Week 4: Big Mac Index
What is the Big Mac Index? When did it start? What is its purpose?
The Big Mac Index, also known as Big Mac PPP, is a survey done by The Economist magazine
in 1986, which is used to measure the purchasing po
Discussion Question Week 1: Tariffs
What is a tariff? What kind of products does the USA have a tariff on?
A tariff is a tax imposed on imported goods and services. Tariffs are used to restrict trade,
as they increase the price of imported foods and
Discussion Question Week 2: Bonded Warehouse
What is a Bonded Warehouse? What is the advantage of a bonded warehouse? What
is/are the drawbacks?
A bonded warehouse is a secured facility supervised by customs authorities, where
dutiable, landed impor
Seminar Three Saturday Homework
1. There are many problems that can occur from having multinational companies. These
problems can arise in both the home country as well as the host country. The home country will
have an employment decline for a short peri
Seminar Three Tuesday Project
Outsourcing is the process of obtaining a good or service from foreign suppler instead of
from an internal or domestic source. Outsourcing also occurs when a company moves part of its
operations to a foreign country. This is
Seminar Three Monday Homework
1. There are three main ways that multinational enterprises diversify their operations. The first is
vertical, which is the parent enterprise decides to establish foreign subsidiaries to produce
intermediate goods. The next i
Seminar 2 Monday Homework
1. The difference between a tariff and a quota is that a tariff is a tax imposed by the
government of a country on imported goods coming into the country. These taxes can
hurt the economy by creating higher prices. A quota is a l
Seminar Two Friday Project
The phrase Made in the USA means that the product is entirely or almost entirely made
in the United States. This is not to be mistaken with Assembled in the USA which means that
the parts for the products were at least partially