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
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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
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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
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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) the "national interest" tariff & nontariff barriers to trade trade policy |
fast track negotiating authority (trade promo- ...tion authority) dumping trade remedies, unfair trade 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
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Bretton Woods Monetary System IMF (International Monetary Fund) reserve currency SDR (Special Drawing Right) convertible currency monetary protectionism (dirty floating) smoothing euro |
eurocurrency 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
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economic growth indicators of economic development economic systems |
OECD countries market-friendly economic policies |
8. Describe/discuss ongoing issues/problems/solutions in economic growth and development (lesser-developed countries).