MGMT 4670
First Midterm Review

1)  Compare and contrast the concepts of individualism and collectivism and describe how they are manifested in the political structure of a state.  Describe the various economic systems the various structures might promote.

2)  Make the case that Hill presents that "innovation and entrepreneurship are the engines of growth."  Include a discussion of market economies, property rights and the required political systems.

3)  Describe the various determinants of culture. 

4)  Compare and contrast Smith’s and Ricardo’s theories on international trade.  Describe and argue why each is superior to Mercantilism.  What are some of the assumptions in Ricardo’s model that have been relaxed in later analyses and what are the effects?

Describe the various ethical issues in International Business.

6)  Define FDI.  What are the costs and benefits to each of the home and host countries?  Be sure to include effects to resource transfer, employment and balance of payments.  How could either the home or host country seek to either encourage or discourage FDI, and why?

7)  Discuss the trend toward globalization of economic activities.  Include in your discussion the drivers of change and the implications for both the globalization of markets and the globalization of production.

8)  Describe the pros and cons of globalization in regard to jobs, income, labor policies, the environment, national sovereignty and the poor.

9)  How does a national culture contribute, or detract, from promoting a competitive advantage.

10)  What are the implications to international business drawn from the relationship between culture and ethics?

What various philosophical approaches or theories that have been applied to ethical systems?

12)  Describe:
a)  The Heckscher-Ohlin Theory
b)  The Product LIfe-Cycle Theory
c)  The New Trade Theory
d)  Porter's Diamond
What are the implications of each?

13)  Defend the position for government intervention in trade.

14)  Considering that a firm may access foreign markets through a variety of alternatives, including export, licensing and direct investment, what factors should it examine?  What considerations would influence the firm to prefer one method of entry over the others?

15)  Discuss the various forms of government intervention in trade in detail.  What are the economic and political arguments for each?  In each case who benefits, and who is hurt?

16)  Describe the concept of pragmatic nationalism in regard to FDI in relation to the two more extreme positions.  In negotiating an investment how is the bargaining power of each the foreign firm and the host country increased or decreased?

17)  What is the difference between horizontal and vertical FDI?   Describe the various causes or motivations that may influence managers to prefer FDI to other types of international activity (e.g. exporting).

18)  Describe the evolution of the world trading system from Adam Smith to the repeal of the Corn Laws through the modern-day WTO.