Reference no: EM132598768

MGT302 International Business Strategies - Polytechnic Institute Australia

Part - 1

1. For each of the Theories below give the critical factor that gives a country or businesses in that country an international strategic advantage. Give an example of a business or country that has an advantage based on this theory.

THEORY
Absolute Advantage
Heckscher-Ohlin Theory (Factor Proportions Theory)

Country Similarity Theory

GlobalStrategic Rivalry Theory

Porter's National Competitive Advantage Theory

2. What does Porter see as providing an additional TWO key determinantsof national competitiveness?

3. a. In what year did China join the WTO?

b. What does WTO stand for and what is it primary goal?

c. What was Chinas average weighted Tariff rate before it joined WTO and what was its rate after (between 2003 and 2017)?

d. Indicate 2 impacts of WTO accession on the China economy.

e. Use the following diagram to write out the general relationship between falling tariffs and the growth in trade.

Part -2

1. Complete:

When countries use Protection:

a. They do not follow what 2 laws?

b. What 3 forms might this protection take?

c. A tariff is a on .

d. Explain the infant industry argument for imposing tariffs.

e. Define dumping.

f. Does the WTO allow for tariffs to stop dumping?

2. On the diagram over the page.
a. label the price of this product before this country trades with the rest of the world. LABEL A
b. Label the price of the product after this country trades with the rest of the world. LABEL B
c. Label the price after this country imposes a tariff on the imports of this product coming in from overseas. LABEL C
d. What does distance A - B on the diagram represent?
e. After tariffs were generally reduced in Australia it was estimated that "For the average Australian family, this period of trade liberalisation is estimated to have seen real income being A$8448 higher in 2016 than otherwise" Explain why this was so.

f. Between 1990 and 2015 the tariff on imported cars fell from what rate to what rate?

Part -3

1. Complete:
a. A country has an Absolute Advantage in the production of a product if it can..................................................................
b. A country has an Comparative Advantage in the production of a product if it can..................................................................
c. What does this theory assume about transport costs between the 2 counties trading? .............................................................
d. Why if this was not an assumption might it explain why Australia has difficulty achieving either an absolute or comparative advantage in many products?

...................................................................................................

e. Label which of the 2 following diagrams represents:
i. Comparative advantage
ii. Absolute advantage.
a. Why are both countries producing both products in the top table?

b. Use the bottom diagram to write down which country has a Comparative advantage in which product.

c. Use the numbers in the top and bottom diagram to prove that more is produced once we have each country specialising in the product in which they have a comparative advantage in and trading with each other.

Part -4

1.
a. What is Globalisation?

b. Give TWO causes of Globalisation

d. What is the overriding key underlying strategy of a business?

e. What are economies of scale? How does selling internationally help to increase economies of scale?

f. How does reducing costs of products help to increase an international businesses revenue ( Total revenue = Price X Quantity sold)

g. What is the key positive consequence of globalisation?

h. What is ONE negative consequence of globalisation?

2. What is the Belt Road Initiative (BRI)? Describe 2 features of the BRI?

3. There have been 4 stages of globalisation.

Name each stage and describe the main cause of each stage?

Attachment:- International Business Strategies.rar