Business Explain: November 2017

Archive for November 2017

Describe the different types of regional economic integration and give an example of each type.

Describe the different types of regional economic integration and give an example of each type. Answer: a. Free trade area (FTA): The goal of a free...

Explain the static effects and dynamic effects of economic integration. What is the difference between trade creation and trade diversion resulting from economic integration?

Explain the static effects and dynamic effects of economic integration. What is the difference between trade creation and trade diversion resulting...

What are the functions of the European Commission, the European Parliament, the Council, and the European Court of Justice?

What are the functions of the European Commission, the European Parliament, the Council, and the European Court of Justice? Answer: a. The European...

What are the rules of origin and regional content provisions of NAFTA?

What are the rules of origin and regional content provisions of NAFTA? Answer: Because NAFTA is a free trade agreement and not a customs union, each...

What has been the impact of NAFTA on trade and employment in NAFTA nations?

What has been the impact of NAFTA on trade and employment in NAFTA nations? Answer: Trade and investment among the NAFTA members has increased significantly...

Identify and briefly compare the major regional trading groups in Latin America, Asia, and Africa.

Identify and briefly compare the major regional trading groups in Latin America, Asia, and Africa. Answer: a. The major trade group in South America...

Are commodity agreements effective? Why or why not?

Are commodity agreements effective? Why or why not? Answer: Commodity agreements used to be influential in helping to stabilize commodity prices,...

Why is geography important to most regional trade agreements? Provide examples of RTAs to illustrate your answer.

Why is geography important to most regional trade agreements? Provide examples of RTAs to illustrate your answer. Answer: There are a number of reasons...

In a brief essay, explain the roles of the World Trade Organization and the United Nations in international trade.

In a brief essay, explain the roles of the World Trade Organization and the United Nations in international trade. Answer: The World Trade Organization...

What is the difference between a free trade agreement and a customs union? Provide examples of each in your answer.

What is the difference between a free trade agreement and a customs union? Provide examples of each in your answer. Answer: The goal of an FTA is...

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities?

What are the disadvantages of import restrictions in regards to creating domestic employment opportunities? Answer: One problem with restricting imports...

Explain the rationale for and problems with making the infant-industry argument work as intended.

Explain the rationale for and problems with making the infant-industry argument work as intended. Answer: The infant-industry argument holds that...

Why do developing countries sometimes impose import restrictions to increase their levels of industrialization?

Why do developing countries sometimes impose import restrictions to increase their levels of industrialization? Answer: Countries with a large manufacturing...

What is the difference between import substitution policies and export-led development policies? What are the potential effects of each?

What is the difference between import substitution policies and export-led development policies? What are the potential effects of each? Answer: Developing...

Many companies and industries argue that they should have the same access to foreign markets as foreign industries and companies have to their markets. In a short essay, discuss this issue of "comparable access," or "fairness."

Many companies and industries argue that they should have the same access to foreign markets as foreign industries and companies have to their markets....

What are common reasons that governments enact export restrictions? What are the possible negative consequences of such restrictions?

What are common reasons that governments enact export restrictions? What are the possible negative consequences of such restrictions? Answer: A country...

What is dumping? What are the possible effects of dumping on a country's economy?

What is dumping? What are the possible effects of dumping on a country's economy? Answer: When companies export below cost or below their home country...

Briefly discuss the four non economic rationales for governmental intervention in the free movement of trade: maintaining essential industries, preventing shipments to unfriendly countries, maintaining or extending spheres of influence, and preserving national identity.

Briefly discuss the four non economic rationales for governmental intervention in the free movement of trade: maintaining essential industries, preventing...

Describe and compare the different types of tariffs (duties).

Describe and compare the different types of tariffs (duties). Answer: A tariff, or duty, the most common type of trade control, is a tax that a government...

In a short essay, list and discuss the nontariff barriers that relate to direct price influences: subsidies, aid and loans, customs valuations, and other direct price influences.

In a short essay, list and discuss the nontariff barriers that relate to direct price influences: subsidies, aid and loans, customs valuations, and...

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas, embargoes, buy local legislation, standards and labels, specific permission requirements, administrative delays, and reciprocal requirements.

List and define the types of nontariff barriers that limit the quantity of goods traded: quotas, embargoes, buy local legislation, standards and labels,...

What are the main arguments for limiting trade in services? What is your opinion on limiting trade in services?

What are the main arguments for limiting trade in services? What is your opinion on limiting trade in services? Answer: Countries restrict trade in...

As an international business manager, how can you benefit from an understanding of international trade theories?

As an international business manager, how can you benefit from an understanding of international trade theories? Answer: Trade policies have an impact...

In a short essay, discuss the theory of mercantilism, and discuss favorable and unfavorable balances of trade as they apply to international business.

In a short essay, discuss the theory of mercantilism, and discuss favorable and unfavorable balances of trade as they apply to international business. Answer:...

In a short essay, discuss the theory of absolute advantage and the reasons a country's efficiency improves based on this theory.

In a short essay, discuss the theory of absolute advantage and the reasons a country's efficiency improves based on this theory. Answer: The theory...

What is the difference between the free trade theories of absolute advantage and comparative advantage? How can free trade improve global efficiency?

What is the difference between the free trade theories of absolute advantage and comparative advantage? How can free trade improve global efficiency? Answer:...

What assumptions underlie the theories of specialization in international trade? What are the limitations of these assumptions?

What assumptions underlie the theories of specialization in international trade? What are the limitations of these assumptions? Answer: The assumptions...

What is the theory of country size? How is country size determined? How does country size affect national trade patterns?

What is the theory of country size? How is country size determined? How does country size affect national trade patterns? Answer: The theory of country...

What is the country similarity theory? According to this theory, what factors affect trade patterns?

What is the country similarity theory? According to this theory, what factors affect trade patterns? Answer: Observations of trade patterns reveal...

In a short essay, discuss the four stages of the international product life cycle.

In a short essay, discuss the four stages of the international product life cycle. Answer: The international product life cycle theory of trade states...

What are the arguments for and against nations developing and implementing strategic trade policies?

What are the arguments for and against nations developing and implementing strategic trade policies? Answer: The two basic approaches to government...

From an economic standpoint, why do production factors move from one country to another? How does factor movement affect international trade?

From an economic standpoint, why do production factors move from one country to another? How does factor movement affect international trade? Answer:...

What is gross national income? How is it calculated? Illustrate your answer with a specific example.

What is gross national income? How is it calculated? Illustrate your answer with a specific example. Answer: Gross National Income is the broadest...

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development, performance, and potential of a country?

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure...

What is inflation? How does inflation affect international business?

What is inflation? How does inflation affect international business? Answer: Inflation means that prices are going up as measured against a standard...

Describe the three ways economies can be categorized. Which one do you believe is best? Why?

Describe the three ways economies can be categorized. Which one do you believe is best? Why? Answer: a. Market economy: A market economy is one in...

What is meant by the idea of economic freedom? What factors are used in the Economic Freedom Index? For managers, what role does the Economic Freedom Index play in analyzing the potential of a country?

What is meant by the idea of economic freedom? What factors are used in the Economic Freedom Index? For managers, what role does the Economic Freedom...

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world? Answer: State Capitalism is an economic...

What is the difference between a developing country and a developed country? What significant trends are occurring in each type of market that relate to international business decisions?

What is the difference between a developing country and a developed country? What significant trends are occurring in each type of market that relate...

What issues complicate international economic analysis?

What issues complicate international economic analysis? Answer: International economic analysis uses many scientific principles but still relies on...

What is the difference between a command economy and state capitalism?

What is the difference between a command economy and state capitalism? Answer: State Capitalism is an economic system whereby the State decides how,...

Why is economic freedom an important factor to consider when analyzing a country's economic development, performance, and potential?

Why is economic freedom an important factor to consider when analyzing a country's economic development, performance, and potential? Answer: Economic...

What are the advantages and disadvantages of using a nation as a point of reference for a culture?

What are the advantages and disadvantages of using a nation as a point of reference for a culture? Answer: The nation, as opposed to the State, provides...

In a short essay, describe the various affiliations upon which a person's status can be based and discuss how social stratification affects such business functions as marketing and employment practices.

In a short essay, describe the various affiliations upon which a person's status can be based and discuss how social stratification affects such business...

Describe the four major theories discussed in your text that explain why motivation differs from one country to another.

Describe the four major theories discussed in your text that explain why motivation differs from one country to another. Answer: a. Materialism and...

What are the characteristics of individualist and collectivist cultures?

What are the characteristics of individualist and collectivist cultures? Answer: Attributes of individualism are low dependence on the organization...

What is the difference between a low-context culture and a high-context culture? How do these differences affect communication in international business dealings?

What is the difference between a low-context culture and a high-context culture? How do these differences affect communication in international business...

What is the difference between a monochronic and polychronic culture? How do such cultural differences affect business practices for international firms?

What is the difference between a monochronic and polychronic culture? How do such cultural differences affect business practices for international firms? Answer:...

What factors influence cultural stability and cultural change? What factors influence how much cultural adjustment organizations must make in foreign countries?

What factors influence cultural stability and cultural change? What factors influence how much cultural adjustment organizations must make in foreign...

What is culture shock? How can an international employer help prevent culture shock and improve the success of expatriates?

What is culture shock? How can an international employer help prevent culture shock and improve the success of expatriates? Answer: Culture shock...

What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider before adopting one of these approaches?

What is the difference between a polycentric, ethnocentric, and geocentric approach to international management? What key factors should a firm consider...

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization?

Why should domestic managers have an understanding of globalization and international business? What are the current views regarding the future of globalization? Answer:...

What are three factors that have led to the increased growth in international business in recent decades? Which do you think has been most important and why?

What are three factors that have led to the increased growth in international business in recent decades? Which do you think has been most important...

In a short essay, discuss why governments have been liberalizing cross-border movements of goods, services, and resources.

In a short essay, discuss why governments have been liberalizing cross-border movements of goods, services, and resources. Answer: Generally, governments...

What is international business? What are the primary reasons that companies engage in international business?

What is international business? What are the primary reasons that companies engage in international business? Answer: International business is all...

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer.

What are the differences between merchandise and service imports and exports? Provide examples to illustrate your answer. Answer: a. Merchandise...

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method.

What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method. Answer: Globalization...

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country?

What is a multinational enterprise (MNE)? How do physical and social factors affect how an MNE functions in a foreign country? Answer: The multinational...

What is foreign direct investment? What social factors in the external environment might affect FDI?

What is foreign direct investment? What social factors in the external environment might affect FDI? Answer: In foreign direct investment (FDI),...

In a short essay, identify and explain three competitive factors that influence international businesses.

In a short essay, identify and explain three competitive factors that influence international businesses. Answer: a. Product strategy—A company's...

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs? Answer: Procedural risk...

How does a nation's legal environment affect an MNE's marketplace behavior, especially when the rule of man prevails?

How does a nation's legal environment affect an MNE's marketplace behavior, especially when the rule of man prevails? Answer: National laws stipulate...

How has intellectual property theft affected China's economy? What is the relationship between China's legal environment and intellectual property theft?

How has intellectual property theft affected China's economy? What is the relationship between China's legal environment and intellectual property theft? Answer:...

In a brief essay, describe the political and legal systems in China and their effect on MNEs doing business in China.

In a brief essay, describe the political and legal systems in China and their effect on MNEs doing business in China. Answer: China applies state...

Compare and contrast the rule of law and the rule of man.

Compare and contrast the rule of law and the rule of man. Answer: The rule of man has been around for millennia, in the sense that for much of history,...

Contrast common law, civil law, customary law, and theocratic law.

Contrast common law, civil law, customary law, and theocratic law. Answer: a. Common law—The United States and the United Kingdom are examples of...

Identify the three common components of modern legal systems and explain their relevance to managers.

Identify the three common components of modern legal systems and explain their relevance to managers. Answer: Unquestionably, legal systems differ...

What is political risk? What is the relationship between political environment and political risk?

What is political risk? What is the relationship between political environment and political risk? Answer: Investing overseas exposes a company to...

What are the differences between democratic and totalitarian political systems? What does current research suggest about the spread of democracy and totalitarianism in the world?

What are the differences between democratic and totalitarian political systems? What does current research suggest about the spread of democracy and...

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation? Answer:...

What are the 4 P's of marketing?

What are the 4 P's of marketing? Identification, selection and development of a PRODUCT, Determination of its PRICE, Selection of a distribution...

What is a market and what do we mean by exchange?

What is a market and what do we mean by exchange? • Market is a collection of buyers and sellers, OR a group that has similar needs that can be met...

What do we mean by the four different types of utility (time, place, possession, and psychological utility)?

What do we mean by the four different types of utility (time, place, possession, and psychological utility)? • Time Utility: Products available when...

Know some of the major marketing strategy decisions.

Know some of the major marketing strategy decisions. Market Segmentation & Target Marketing: The identification and selection of one or more...

What do we mean that a product becomes a commodity?

What do we mean that a product becomes a commodity? When companies in the same industry offer the same basic products to the same customers. At the...

Know the different stages of the strategic planning process (situation analysis and marketing plan).

Know the different stages of the strategic planning process (situation analysis and marketing plan). (1) Situation Analysis: An in-depth analysis...

What do we mean by organization mission and vision?

What do we mean by organization mission and vision? • Organization Mission: Answers the question "What business are we in?". It's a clear and concise...

What are the elements of a good mission statement?

What are the elements of a good mission statement? (1) Who are we? (2) Who are our customers? (3) What is our operating philosophy (basic beliefs,...

What do we mean by the width of a mission statement?

What do we mean by the width of a mission statement? When it comes to crafting a mission statement, management should be concerned about the statement's...

What is corporate strategy?

What is corporate strategy? The central strategy for utilizing and integrating resources to carry out the organization's mission and achieve the desired...

What is business-unit strategy?

What is business-unit strategy? Determines the future direction of each business unit, including its competitive advantages, the allocation of its...

What is a strategic business unit?

What is a strategic business unit? A division of a large company that has its own distinct mission and its own competitor...

What do we mean by competitive or differential advantage?

What do we mean by competitive or differential advantage? - Competitive advantages allow a company or country to produce a good or service at a lower...

What is a marketing plan?

What is a marketing plan? Detailed formulation of the actions necessary to carry out the marketing progra...

Parts of the marketing plan:

Parts of the marketing plan: • Executive Summary • Situation Analysis • SWOT Analysis • Marketing Goals & Objectives • Market Strategy • Market...

Why is the executive summary very important?

Why is the executive summary very important? It may be the only element of the marketing plan read by many people. It should be the last element written...

What is the purpose and significance of the Marketing plan?

What is the purpose and significance of the Marketing plan? It's the handbook for marketing implementation, evaluation, and control. The hallmark...

What is a situation analysis and what are some of the issues to be considered in a situation analysis? (Three key environments)

What is a situation analysis and what are some of the issues to be considered in a situation analysis? (Three key environments) SA:Describes current...