International

  1. International trade is the concept of exchange between people or entities in different countries. Theories which are referred to as modern are firm-, or company-, based. Mercantilism was one of the earliest efforts to develop an economic theory. The belief is that trade generates wealth and is stimulated by the accumulation if profitable balances, which a government should encourage by means of protectionism. What is wrong with this theory in today’s world of Business? Are there better forms of trade?
  2. Using Porter’s four determinants of competitive advantage, describe how a business may use the trade theories to develop its business strategies.
  3. Why is it important to understand political and legal factors of countries that you want to deal with when trading Internationally? 
  4. What are three factors that impact a company’s decision to invest in a country? What is the difference between vertical and horizontal FDI? Give one example of an industry for each type. How can governments encourage or discourage FDI?
  5. Identify at least two ways culture can impact a Business. Be specific and PROVIDE EXAMPLES. Explain some of the challenges that could materialize (i.e. decision -making, negotiating, etc.) and generate some ideas on how you would help to resolve the problem in specific ways.

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