Reference no: EM133021913
Answer the following questions in a paragraph:
1. Discuss and explain how the international trade in merchandise and services has changed over the past two decades and what the major trends are. What future trends can you speculate about? How might this information be of value to a manager?
2. Where do merchandise exports come from, and where do they typically go? How and why has this been changing over time, and do you think these trends are likely to continue? Why or why not? Why might this information be valuable to a marketing analyst?
3. Describe mercantilism and explain why some call it a poor approach to promoting economic development and prosperity. Given the criticisms, why do some countries continue to rely on practices based on mercantilism?
4. Explain Adam Smith's theory of absolute advantage. What are the potential limitations of this theory for helping policymakers when making decisions related to international trade? How does Ricardo's theory of comparative advantage differ from the theory of absolute advantage?
5. "Sending service jobs to low-cost nations, such as India, is good for America." What are the arguments that support such an assertion? Under what circumstances might such an assertion be viewed as false?
6. Name some products that you believe have passed through the four stages of the international product life cycle. Try to identify industries or products for which the international product life cycle still helps explain international trade and investment. Can you identify industries or products for which this concept does not apply?
7. Use Porter's diamond model of national advantage to explain why an emerging market such as Indonesia would be expected to experience great difficulty in achieving global competitiveness in a new industry sector such as smartphones or hybrid electric-gasoline automobile engines.
8. What are the possible explanations for the observed decline in the proportion of FDI accounted for by the United States and Japan? What are the implications of such a decline? Do you expect that this decline will continue in the future? Why or why not?
9. How has the level and direction of FDI changed over the past two to three decades, both overall and in terms of annual outflows and inflows? What might explain why these changes have occurred? Why would this information be of relevance to managers?