Reference no: EM133673426

Assignment:

Question 1. Do you think governments should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking such a position?

Question 2. Compare and contrast these explanations of FDI: internalization theory and Knickerbocker's theory of FDI. Which theory do you think offers the best explanation of the historical pattern of FDI? Why?

Question 3. What are the economic and political arguments for regional economic integration? Given these arguments, why don't we see more substantial examples of integration in the world economy?

Question 4. You are the CFO of a U.S. firm whose wholly-owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?

Question 5. Why did the gold standard collapse? Is there a case for returning to some type of gold standard? What is it?

Question 6. In a world of zero transportation costs, no trade barriers, and nontrivial differences between nations with regard to factor endowments, firms must expand internationally if they are to survive. Address.