Studysheet #1

NOTE: Underlined items on this page are hotlinked to web sites via the Web version of this Studysheet on the instructor’Äôs webpage

 

CONTEMPORARY DIMENSIONS OF INTERNATIONAL BUSINESS

international business (IB)

multinational enterprise

transnational (global) enterprise

drivers of globalization

foreign direct investment

foreign portfolio investment

 

1. Describe overall patterns in world trade and investment since the end of WW II (amount, growth rate, economic sectors, geographic flow).

2. Describe (broadly) 20th century patterns/trends in the international trade and investment position of the U.S. (inward and outward).

 

EXPLAINING INTERNATIONAL TRADE AND INVESTMENT

 

comparative advantage

product-life-cycle theory of trade/investment

 

offshoring

outsourcing

3. Discuss/explain why international trade and investment occurs (at the national level and level of the firm).

 

INTERNATIONAL TRADE RELATIONS

protectionism

Hawley-Smoot Tariff Act

GATT/WTO (World Trade Organization)

most-favored-nation (MFN) treatment

...(normal trade relations)

Kennedy Round

Tokyo Round

Uruguay Round

Doha Round

types of "regional economic integration"

...(regional trade agreements)

European Union

NAFTA

the "national interest"

tariff & nontariff barriers to trade

trade policy

fast track negotiating authority (trade promo-

...tion authority)

dumping

trade remedies, unfair trade

trade adjustment assistance

orderly marketing agreement

U.S. Trade Representative

U.S. International Trade Commission

 

balance-of-payments accounting

...merchandise trade account

...services account

...current account

...capital account

...financial account

 

4. What is the rationale for free trade? What progress has been made in reducing barriers to trade and what

issues and problems remain?

5. What is national "trade policy"? Describe/discuss patterns and trends in U.S. trade policy since 1930.

 

INTERNATIONAL MONETARY RELATIONS

Bretton Woods Monetary System

IMF (International Monetary Fund)

exchange-rate regimes

reserve currency

SDR (Special Drawing Right)

convertible currency

monetary protectionism (dirty floating)

smoothing

euro

eurocurrency

eurodollar

foreign exchange market

...spot market

...forward market

...futures market

foreign-exchange risk

foreign-exchange hedging

overvalued and undervalued currency

6. Track (broadly) the evolution of the "international monetary system" over the past century.

7. What factors influence the price of a country's currency relative to other currencies? Give examples of how

currency fluctuations can influence specific functional areas of business (e.g., aspects of marketing, finance, accounting,

staffing, production/procurement)

 

ISSUES IN ECONOMIC GROWTH AND DEVELOPMENT

economic growth

indicators of economic development

economic systems

OECD countries

market-friendly economic policies

World Bank

8. Describe/discuss ongoing issues/problems/solutions in economic growth and development (lesser-developed countries).