Essay about Bussiness Q&a

1497 Words Nov 3rd, 2015 6 Pages
Chapter Three
The World Marketplace: Business without Borders

Review Questions

1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity?

2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry?

3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why?

4. Explain the meaning of “strong” currency and “weak” currency. What are the advantages and disadvantages of each?

5. Why is outsourcing such an attractive way for firms to tap into
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Do you believe that demand for American stars in foreign advertising will continue? Why or why not? Will the Internet encourage or discourage this trend?

5. Over the past decade, the free trade movement has come under increasing fire as markets have opened and barriers to trade have fallen. Review the arguments for and against free trade, considering the perspective of both more developed and less developed countries. On balance, do you believe that the benefits of free trade outweigh the drawbacks? Why or why not?

Case Connection
China in Africa: A Big Step Forward, or a Bigger Step Backward?

Entering an untapped international market can strengthen a business tremendously—but what if the costs outweigh the benefits for the market itself? China has long been an important player on the global stage, but recent advances in manufacturing, natural resources, and energy production have catapulted the expansive country to the forefront of international trade. Currently the world’s fastest growing major economy, China is set to eclipse the United States as the world’s largest economy by 2016. Among various domestic and international plays, one of China’s most fascinating uses of its newfound economic might is a considerable interest—and investment—in the continent of Africa.

As its economy grew throughout the 2000s, China began establishing oil and mining firms across Africa. In return for the cooperation of African

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