Discussion Questions

1621 WordsJan 17, 20167 Pages
CRITICAL QUESTIONS AND DISCUSSION Note: Questions from the end of the chapters can also be used for discussion questions Chapter 2: Foundations of Modern Trade Theory: Comparative Advantage Critical Thinking and Discussion Questions: QUESTION 1: Mercantilism is a bankrupt theory that has no place in the modern world. Discuss. QUESTION 2: Is free trade fair? Discuss. QUESTION 3: Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as “unfair” import competition. Is such competition “unfair”? Do you think that this argument is in the best interests of (a) the unions, (b) the people they represent, and/or (c) the country as a…show more content…
Discuss. QUESTION 3: What is the relationship between corruption in a country (i.e., bribe- taking by government officials) and economic growth? Is corruption always bad? QUESTION 4: The Nobel prize-winning economist Amartya Sen argues that the concept of development should be broadened to include more than just economic development. What other factors does Sen think should be included in an assessment of development? How might adoption of Sen’s views influence government policy? Do you think Sen is correct that development is about more than just economic development? Explain. QUESTION 5: You are the CEO of a company that has to choose between making a $100 million investment in Russia or the Czech Republic. Both investments promise the same long-run return, so your choice is driven by risk considerations. Assess the various risks of doing business in each of these nations. Which investment would you favor and why? Chapter 10: The Balance of Payments Critical Thinking and Discussion Questions: QUESTION 1: In 2004, inward FDI accounted for some 24% of the gross fixed capital formation in Ireland, but only .6% in Japan. What do you think explains the difference in FDI inflows into the two countries? QUESTION 2: You are the international manager of a US business that has just invented a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to

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