Expected Questions

Exam Boundary: Chapter1 ~ 10One Question in each of Chapters will be chosen as exam question.It means ten Questions in total will be taken for the exam.The questions from Chapter 5, 9 and 10 are mandatory.From rest of other chapters, students can choose 3 Question to solve.Students must write about six questions in total during the exam hour.

Chap.11. What is the World Trade Organization? What is its role in the world economy?

2. What is the International Monetary Fund? What is the World Bank? What is their relationship, if any, with each other?

3. How has technological change affected global markets? What key innovations have changed the nature of how "we do business?" 

4. Innovations in transportation have had a major impact on global trade. Consider one of these innovations: containerization. Why is this innovation so significant? 

5. Discuss the effect of globalization on national sovereignty.

Chap.21. What are state-owned companies? Why do they exist? Why do they usually perform poorly? 

2. Discuss individualism. Explain the key positions of the philosophy, it roots, and its role in the modern economy. 

3. Identify the tree types of economic systems. How do the three types of economic systems differ from each? How are they the same? 

4. Discuss why there is inefficiency in a monopoly situation

5. Explain the differences between common law and civil law systems by the approach of each to contract law. 

6. Discuss privatization. Why is it important? 

Chap. 31. Explain the concept of social stratification. 

2. Discuss why the stratification of a society is important to business. 

3. Consider the influence of Confucian ethics on the economies of China, Japan, South Korea, and Taiwan. 

4. Why is the role of education in a culture important to international companies? 

5. Discuss the limitations of Hofstede's research

6. Economic advancement and globalization are prompting societal change. Discuss this statement.

Chap. 41. What is the Foreign Corrupt Practices Act? What is its purpose? 

2. Explain the Friedman doctrine. Who developed the philosophy? How well does this approach hold up ethically? 

3. Discuss the naive immoralist's approach to business ethics. What are the criticisms of this approach? 

4. Consider the Kantian approach to ethics. Who is responsible for the philosophy? 

5. Describe justice theories. What is John Rawls' position on ethics? 

Chap. 51. How did David Ricardo extend Adam Smith's work? Explain the theory of comparative advantage. 

2. Explain the Heckscher-Ohlin theory. What is the relationship between Heckscher-Ohlin's work and the theory of comparative advantage? 

3. What is the Leontief paradox? 

4. Evaluate the product life cycle. How well does the theory hold up? What are the theory's weaknesses? 

5. What Explain the connections between economies of scale, first-mover advantages, and trade patterns. 

6. Discuss the implications of the new trade theory. 

7. What are the four attributes identified by Porter as being important in determining why a nation achieves success in a particular industry? 

Chap. 61. Discuss the different types of tariff barriers. Consider the beneficiaries of tariff barriers and the losers. 

2. Explain how governments use administrative trade policies to boost exports and restrict imports. Provide an example of an administrative trade policy. 

3. What is dumping? How do governments respond to charges of dumping? 

4. Discuss the infant industry argument for intervention in markets. What is GATT's position on the argument?

5. What is Paul Krugman's position on strategic trade policy? 

6. Explain how trade barriers affect a firm's strategy. 

Chap. 71. Discuss the reasons for the growth in FDI over the last 30 years. 

2. What is licensing? How does it work? 

3. Consider the notion that FDI flows are a reflection of strategic rivalry between firms in the global marketplace. What is the main limitation of the theory? 

4. Explain the product life cycle theory and its connection with FDI. 

5. Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country. 

Chap. 81. Discuss the economic case for economic integration. How does it relate to trade theory?

2. What is the political case for integration? How did political arguments influence the establishment of the European Union? 

3. How will EU countries benefit from the establishment of a single currency? What, if any, are the costs of a single currency? 

4. Consider the opportunities arising from the creation of the EU for international businesses. 

5. Some economists have expressed concerns that the benefits of regional integration have been touted while the costs have been ignored. Explain the view of these economists. 

Chap. 91. What are the main uses of foreign exchange markets for international business? 

2. What is a currency swap? 

3. Where is the foreign exchange market located? What is the nature of the market? Is the market growing or shrinking on a global basis? 

4. Consider the role of investor psychology and bandwagon effects on how well PPP and the International Fisher Effect explain short-term movements in exchange rates. 

5. How can a firm minimize its foreign exchange exposure?

Chap. 101. Compare and contrast a pegged exchange system and a dirty float system of exchange rates. 

2. With the help of an example, discuss the notion of balance-of-trade equilibrium

3. What was the Bretton Woods agreement? How was it different from the gold standard? 

4. What is a currency board? Why do countries choose this type of system? What are the disadvantages of this type of arrangement? 

5. How can international companies reduce their economic exposure in a world of constantly fluctuating exchange rates? 

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