1. Discuss the relationship between government intervention and protectionism.
2. Distinguish among tariffs, nontariff trade barriers, investment barriers, and government subsidies.
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3. Freedom House is a nonprofit organization that monitors the state of freedom worldwide. It conducts an annual “Freedom in the World Survey,” which you can view at [www.freedomhouse.org]. The survey compares the state of political rights and civil liberties in nearly 200 countries over time. Visit the site and.
10. Distinguish between trade creation and trade diversion.
11. What strategies should companies employ to maximize the benefits of regional integration?
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3. What is the relationship between trade barriers, bureaucracy, country risk, and the emergence of Tata as a major player in world trade? What is the role of declining government intervention in Tata’s success in India and its ability to internationalize? What should Tata do to manage country risk in.
5. As it prepares to expand abroad, how can TAMO improve its corporate social responsibility toward future customers in emerging markets? What can TAMO do to minimize the impact of its operations on the natural environment in Asia and elsewhere?
? TAMO’s Corporate Citizenship Initiatives
As it prepares to do business.
5. What are the world’s leading economic blocs? Which blocs are most advanced in terms of regional integration?
European Free Trade Association (EFTA)
North American Free Trade Agreement (NAFTA)
El Mercado Comun del Sur (MERCOSUR)
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9. Describe various company strategies to manage government intervention.
Strategies for Managers
(1) Research to gather knowledge and intelligence
(2) Choose the most appropriate entry strategies.
(3) Take advantage of foreign trade zones
(4) Seek favorable customs classifications for exported products.
(5) Take advantage of investment incentives and other government support programs.
(6) Lobby for freer trade.
4. Russell Corporation is smaller than Adidas and Nike. What should Russell do to counter these firms? What should Russell do to counter the flood of low-cost athletic apparel now entering the United States from China? What can Russell do to ensure its future survival and success?
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2. What makes emerging markets attractive for international business? Discuss emerging markets as target markets, as platforms for manufacturing, and as sourcing destinations.
Emerging Markets as Manufacturing Bases
Emerging Markets as Sourcing Destinations
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2. (Ethical Dilemma): The United States steel industry, once the world leader, now produces less steel than either China or Japan. American steel producers are threatened by price-competitive suppliers in Brazil, Russia, and other emerging markets. The U.S. steel industry dealt with this threat by launching a lobbying campaign to.
6. Describe the process for selling to foreign governments and state enterprises.
7. Doing business in emerging markets involves strategies that are often distinct from those of other international venues. What types of business approaches can firms use when doing business in emerging markets?
8. How can firms show corporate social responsibility.
4. Given growth rates and other characteristics of emerging markets, what markets should TAMO target for sales of Nano cars? What country-level factors should TAMO consider as it evaluates the potential of various emerging markets?
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4. Given growth rates and other characteristics of emerging markets, what markets should TAMO target for sales of Nano cars? What country-level factors should TAMO consider as it evaluates the potential of various emerging markets?
Jaguar and Land Rover- Emerging Markets Provide Key Growth Opportunities
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5. What are the world’s leading economic blocs? Which blocs are most advanced in terms of regional integration?
Asia Pacific Economic Cooperation (APEC)
Australia and New Zealand Closer Economic Relations Agreement (CER)
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? APPLY YOUR UNDERSTANDING
1. TelComm Corporation is a manufacturer of components for the cell phone industry. TelComm’s founder, Mr. Alex Bell, is interested in exporting the firm’s products to China. He has heard that China has the world’s largest population of cell phone users, and wants to enter the market..
3. How can managers estimate the true market potential of emerging markets?
Estimating the true potential of emerging markets:
4. Describe the various risks and challenges encountered in emerging markets.
? Risks and challenges of doing business in emerging markets:
5. What is a family conglomerate (FC)? How are FCs different from publicly.
1. There has been much opposition to the Free Trade Area of the Americas (FTAA). For a sampling of arguments against this proposed pact, visit www.globalexchange.org
www.citizenstrade.org/stopftaa.php
www.corpwatch.org
Also visit the official site of the FTAA at www.ftaa-alca.org, or get information on the proposed pact from globalEDGE™. Based on your reading of the.
1. Describe the various advantages that firms like Tata employ to become large industrial conglomerates. How can Tata use these same advantages to succeed in foreign markets?
Describe the various advantages that firms like Tata employ to become large industrial conglomerates.
? Emerging Market Global Challengers are Competitors, Partners or Customers.
2. Do you believe U.S. military contracts with Boeing amount to subsidies? Have these types of payments provided Boeing with unfair advantages? Justify your answer.
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9. Explain the drawbacks and ethical dilemmas of regional integration for nations. Explain the drawbacks and ethical dilemmas for firms.
? Loss of national identity
? Sacrifice of autonomy
? Transfer of power to advantaged firms
? Failure of small or weak firms
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2. The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating the international trade and investment policies of the United States. Visit the USTR Website from globalEDGE™ or directly (www.ustr.gov). Under Reports and Publications, search for “National Trade Estimate Report” for the latest year. This document.
5. What are the world’s leading economic blocs? Which blocs are most advanced in terms of regional integration?
Caribbean Community and Common Market (CARICOM)
Comunidad Andina de Naciones (CAN)
Association of Southeast Asian Nations (ASEAN)
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3. Visit the following web portals and review their perspectives on the debate about free trade and government policies on trade barriers. Given the inherent conflict between national interests, special interests, asymmetries in world wage rates and other economic conditions, what is the best path forward for national governments? That.
5. What are the world’s leading economic blocs? Which blocs are most advanced in terms of regional integration?
Economic Integration in the Middle East and Africa
? Other regional economic integration in the Middle East:
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2. Following implementation of free trade agreements, trade has grown within each of the CARICOM and CAN economic blocs. The growth of within-bloc trade implies that exports from your country to these blocs may be declining over time. Discuss strategies for counteracting such a shift. What recommendations would you make.
6. Describe the major characteristics of the European Union and NAFTA.
? The EU has four additional institutions that perform its executive, administrative, legislative, and judicial functions.
The EU faces other challenges
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4. Distinguish between countervailing duties and antidumping duties.
5. In what ways do government subsidies and procurement policies amount to protectionism?
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7. Why do nations seek to join or form economic blocs? What are the advantages of such arrangements?
8.What national conditions contribute to the success of economic integration?
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2. Visit the Web sites of three major economic blocs. One way to do this is to enter the acronyms for each bloc into a globalEDGE™ search. Using the “Success Factors for Regional Integration” framework highlighted in this chapter, discuss the likely long-term prospects for success in each of these.
9. Explain the drawbacks and ethical dilemmas of regional integration for nations. Explain the drawbacks and ethical dilemmas for firms.
? Corporate restructuring and job loss
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1. Where do you stand? Do you think EU subsidies and soft loans to Airbus are fair? Why or why not? What advantages does Airbus gain from free financial support from the EU governments? Are complaints about the EU’s government intervention fair in light of Europe’s long history of democratic.
? APPLY YOUR UNDERSTANDING
1. There are some 200 economic integration agreements in effect around the world already, far more than even a few years ago. Virtually every country is now party to one or more free trade agreements. Supporters argue that free trade is good for nations. What is the.
2. What makes emerging markets attractive for international business? Discuss emerging markets as target markets, as platforms for manufacturing, and as sourcing destinations.
Emerging Markets as Target Markets
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1. What are advanced economies, developing economies, and emerging markets? What are the major distinctions among these three country groups?
2. Explain why firms want to do business in emerging markets. What makes these markets attractive?
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3. Assuming that Airbus cannot compete without subsidies and loans, is it likely that the EU will discontinue its financial support of Airbus? What are the EU’s vested interests in continuing to support Airbus?
5. In the event the WTO rules against Airbus and tells it to stop providing subsidies and.
3. (Ethical Dilemma) You are Vice President for International Sales at AgriCorp, a large trading company that exports processed foods to Africa. You are often frustrated that African countries impose high tariffs (typically 75 percent) on the import of processed foods. These barriers raise AgriCorp’s cost of doing business and.
3. Honduras is a poor country that faces the loss of jobs in its apparel sector from growing foreign competition. What can the Honduran government do to help keep jobs in Honduras? Should the government try to attract more foreign investment into Honduras? What steps could the government take to.
1. Your firm is considering exporting to two countries: Kenya and Vietnam. However, management’s knowledge about these countries’ trade policies and barriers is limited. Conduct a search at globalEDGE™ to identify the current import policies, tariffs and restrictions in these countries. Prepare a brief report on your findings. In addition.
3. NAFTA is a free trade area, and the EU is a common market. Visit the Web sites of these two economic blocs, www.nafta-sec-alena.org and europa.eu, and explain the business strategy implications of each type of economic bloc. Small and medium-sized enterprises (SMEs) tend to be disadvantaged when it comes.
9. Explain the drawbacks and ethical dilemmas of regional integration for nations. Explain the drawbacks and ethical dilemmas for firms.
? Reduced global free trade
External suppliers based in developing economies:
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5. As it prepares to expand abroad, how can TAMO improve its corporate social responsibility toward future customers in emerging markets? What can TAMO do to minimize the impact of its operations on the natural environment in Asia and elsewhere?
? Limiting Carbon Emissions through Alternative Energy Sources
What can TAMO do.
1. China has the most comparative advantages in producing apparel. Free trade theory implies that retailers should import clothing from the most efficient country. Given this, and potential drawbacks of regional integration, would it be better to allow free trade to take its natural course? That is, should DR-CAFTA be.
1. Describe the various advantages that firms like Tata employ to become large industrial conglomerates. How can Tata use these same advantages to succeed in foreign markets?
How can Tata use these same advantages to succeed in foreign markets?
? New Global Challengers
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7. How did government intervention evolve between the first and second halves of the twentieth century?
8. How has government intervention evolved during the global financial crisis?
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1. What is a regional economic integration bloc (also called an economic bloc)?
2. What is the role of free trade agreements in the formation of economic blocs?
3. What are the different levels of economic integration?
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