Name: Twasin Abduho Al Wares

ID: 2015010000442

Class Test: 3

Ch: 7 Page: 244

Answer to the Question no. 1

I do think governments should consider human rights when granting preferential trading rights to
countries. In the world I live in I have strong beliefs that every individual should be granted basic
human rights, in whatever country they reside in. Yes, trading with countries such as China can
bring a boost to the economy, but at what cost? I would rather pay the extra cash in order to
ensure the person who was making the item did it in a safe environment with basic human
rights. Countries such as China are frequently a violator of human rights, and trading with the
U.S. is very important to China. This gives the U.S. a kind of leverage when trying to influence
China’s human rights policies, and we have used this leverage in the past, and I feel we should
continue to do so showing other Countries what we are willing to do in order to provide ethical
international business. Although, in doing this we run the risk of China choosing to trade with a
country other than the U.S. If we were to forget about human rights, and were too just trade with
China it could also make human rights better without even trying. This could happen by the
income levels increasing due to trade, which in return, could provide greater wealth for the
people who will then be able to mandate, and obtain better treatment.

Answer to the Question no. 3

The new trade theory tells us that the increasing returns to concentrations and first mover
benefits matter very much. This theory is founded on the dispute for first mover benefits, when
the government uses backings to increase the chances of becoming first movers in developing
industries. Businesses should be urging the government to focus on new technologies that
could be very important in the future, and using subsidies to help develop this work in order to
create these technologies. Governments should help provide export backings until the local
businesses have been able to establish first mover gains in the worlds market.

Answer to the Question no. 4

Well, as long as the manufacturing requirements haven’t changed drastically the obvious choice
would to be reviewing Malaysia or Hong King again. Due to the U.S. enforcing the ad valorem
tariff on Thailand product imports, it would be simple to avoid the tariffs by reviewing these other
locations, and choosing to produce there instead.
Ch: 8 Page: 278 & 278

Answer to the Question no. 1

Mega changes like deregulation of Telecommunications sector and privatization along with rapid
evolution of technology and changing consumption habits along with economic cycles like
Dotcom bubble and Great Recession were some factors driving changes.

Answer to the Question no. 2

Telefonica focused in Latin America for growth opportunities as bugger players were absent and
lacked proliferation of Internet services. European Union was slow to respond due to already
presence of large players and multiple smaller players which would have to be acquired first to
enter new market.

Answer to the Question no. 3

Telefonica has used merger acquisition strategy because this gives competitive edge about
knowing customers base and their preference through acquisition of local player and helps
establish brand resonance early. This too has potential risks like lack of customer adoption and
merger acquisition laws which degrade the physical convergence of assets giving low quality
network.

Answer to the Question no. 4

Telefonica brings global brand image and huge customer base plus expertise in operating
across continents and geographical domains with strong legacy.

Answer to the Question no. 5

Inward investment always benefits host nation as it creates employment opportunities and
brings FDI as well as strong competitive advantage in long run.