Assignment : BBA VII

Maximum Marks:

Chapter 1: Globalization
- What is meant by the term globalization
- Describe the changing nature of the global economy due to Covid-19
- How the process of globalization is creating opportunities and challenges for
business managers.

Critical Thinking and Discussion Questions:

1. Describe the shifts in the world economy over the past 30 years. What are the
implications of these shifts for international businesses based in Great Britain?
North America? Hong Kong?
2. “The study of international business is fine if you are going to work in a large
multinational enterprise, but it has no relevance for individuals who are doing work
in small firms.” Evaluate this statement.
3. How have changes in technology contributed to the globalization of markets and
production? Would the globalization of production and markets have been
possible without these technological changes?
5. How does the Internet affect international business activity and the globalization of
the world economy?
6. If current trends continue, China may be the world’s largest economy in 2020. Discuss
the possible implications of such a development for
(a) the world trading system,
(b) the world monetary system,
(c) the business of today’s European and U.S.-based global corporations, and
(d) global commodity prices.

Chapter 2: National Differences in Political Economy

- How the political systems of countries differ.
- How the economic systems of countries differ.
- How the legal systems of countries differ.
- Explain the implications for management practice of national differences in
political economy.

Critical Thinking and Discussion Questions:

1. A democratic political system is an essential condition for sustained economic progress.
2. What is the relationship between corruption in a country (i.e., government officials
taking bribes) and economic growth? Is corruption always bad?

Chapter 3: Political Economy and Economic Development

- Explain what determines the level of economic development of a nation.
- Identify the macro-political and economic changes occurring worldwide.
- Describe how transition economies are moving toward market-based systems.
 - Explain the implications for management practice of national difference in
political economy.

Critical Thinking and Discussion Questions:

1. You are a senior manager in a U.S. automobile company considering whether to invest
in production facilities in China, Russia or Germany. These facilities will serve local
market demand. Evaluate the benefits, costs and risks associated with doing business
in each nation. Which country seems the most attractive target for foreign direct
investment. Why?

Chapter 4: Differences in Culture

- Demonstrate an appreciation for the economic and business implications of
cultural change.

Critical Thinking and Discussion Questions:

1. Outline why the culture of a country might influence the costs of doing business in
that country. Illustrate your answer with examples.
2. Do you think that business practices in an Islamic country are likely to differ
from business practices in the United States? If so, how?
3. Choose two countries that appear to be culturally diverse. Compare the cultures of
those countries and then indicate how cultural differences influence
(a) The costs of doing business in each country.
(b) The likely future economic development of that country.
(c) Business practices.

Chapter 5: Ethics in International Business

- Discuss the ethical issues faced by international businesses
- Recognize an ethical dilemma
- Causes of unethical behaviour by managers
- Explain how managers can incorporate ethical considerations into their decision making.

Critical thinking and discussion questions:

1. Visiting american executive finds that a foreign subsidiary in poor nation has hired
12-year-old girl to wok on a factory floor, in violation of the company’s prohibition on
child labor. He tells the local manager to replace the child and tell her to go back to
school.
The local manager tells the American executive that the child is an orphan with no
other means of support, and she will probably become a street child if she denied work.
What should the American executive do?
2. Drawing upon John Rawl’s concept of the veil of ignorance, develop an ethical code ja
3. that will (a) Guide the decisions of a large oil multinational toward
environmental protection and (b) Influence the policies of a clothing company to
outsourcing of manufacturing processes.
4. Are facilitating payments (speed payments) ethical?
Chapter 6: International Trade Theory
- Why do nations trade with each other?
Why do many economists believe that unrestricted free trade between nations will raise
the economic welfare of countries that participate in a free trade system.
- What are the important implications that international trade theory holds for
business practice.

Critical thinking and discussion questions:

1. The world’s poorest countries are at a competitive disadvantage in every sector of their
economies. They have little to export. They have no capital: their land is of poor quality;
they often have too many people given available work opportunities; and they are poorly
educated. Free trade cannot possibly be in the interests of such nations. Discuss.

Chapter 7: The political economy of international trade

Critical thinking and discussion question:

1. Discuss different instruments of “trade policy”

Chapter 10: The foreign exchange market

- Describe the functions of the foreign exchange market.
- Discuss different theories explaining how currency exchange rates are determined
and their relative merits.
- Compare and contrast the differences among translation, transaction and
economic exposure, and what managers can do to manage each type of exposure.

Critical thinking and discussion questions:

1. Two countries, Great Britain and the United States, produce just one good: Beef.
Suppose the price of beef in the United States is $2.80 per pound and in Britain is
£3.70 per pound.
(a) According to PPP theory, what should the dollar/pound exchange rate be?
(b) Suppose the price of beef is expected to rise to $3.10 in the United States and to
£4.65 in Britain. What should the one-year forward dollar/pound spot exchange rate be?
(c) Given your answers to part a and b, and given that the current interest rate in
the United States is 10%, what would you expect the current rate to be in Britain?

Chapter 11: The international Monetary System

- Describe the historical development of the modern global monetary system.
- Compare and contrast the differences between a fixed and a floating exchange
rate system.
 - Explain the implications of the global monetary system for currency management
and business strategy.

Critical thinking and Discussion questions:

1. Why did the gold standard collapse? Is there a case of returning to some type of
gold standard? What is it?
2. What opportunities might current IMF lending policies to developing nations create
for international businesses? What threats might they create?
3. What will happen to the value of the U.S. dollar if OPEC members decide to invest
more of their petrodollars toward non-dollar-denominated assets, such as euro-
denominated stocks and bonds?
4. In addition to oil producers, China is also accumulating a large stock of dollars,
currently estimated to total 1.4 trillion. What would happen to the value of the dollar if
China and oil-producing nations all shifted out of dollar-denominated assets at the
same time? What would be the consequences for the U.S. economy?