Globalization and Business Page

Learning Activities

Name: Stephanie Joy Vito

Class Schedule: TTh 4:00 – 5:30

Directions: Read and analyze the following cases and answer what is required. Submit
your work in the pigeon boxes which are provided in your department/college, or to
google class on or before the date as reflected in your study schedule. See Rubrics in
appendix. You may also access the rubrics in the classwork section in the google
classroom.

Case 3
Economist Lester Thurow once posed the following question: “If you were the president
of your own country and could choose one of two industries in which to specialize,
computer chips or potato chips, which would you choose?” When faced with this
question, many people choose potato chips, because “everybody can use potato chips,
but not everybody can use computer chips.” But the answer is much more complex.
Whether to choose computer chips or potato chips depends on such factors as the
relationship between national wealth and the amount of value added in manufacturing
products, the possibility that the country can benefit from monopoly power (few countries
can make computer chips), and the likelihood of spin-off industries (computer chip
technology gives rise to other technologies, such as computers).
Required:
In light of these and other possible considerations, which would you choose: computer
chips or potato chips? Justify your answer.
I would choose computer chips because it has more percentage in doing profits. Potato
chips can have lesser manufacturing expenses than producing computer chips but it
generate income lesser. The benefits of producing computer chips is that it can have
higher return rate. It is a matter of choosing lesser manufacturing expense with lesser
return or high manufacturing expense but high return rates. Also, choosing to product
computer chips can never go out of style because it will continue to thrive especially in
the presence of innovation which results to having a consistency on generating income.

Case 4

Suppose you get a job at Aoki Corporation, a firm that manufactures glass for industrial
and consumer markets. Aoki is a large firm but has little international experience. Senior
managers are considering a plan to move Aoki’s manufacturing to China, Mexico, or
Eastern Europe and to begin selling its glass in Latin America and Europe. However,
they know little about the country risks that Aoki may encounter.

“Not intended for publication. For classroom instruction purposes only”.

Globalization and Business Page

Required:

Describe how each of the following factors might contribute to country risk as Aoki
ventures abroad: foreign investment laws, controls on operating forms and practices,
and laws regarding repatriation of income, environment, and contracts

Having an absence of knowledge in foreign investment laws, controls on operating forms

and practices, and laws regarding repatriation of income, environment, and contracts
can create a huge investment risks for Aoki Corporation. Truth is, when a firm decides to
venture abroad, it opens to a new set of standards and issues that should be considered
in operating. One cannot expect high acceptance and income rate when there is a
obvious gap between knowing and implementing these factors that might contribute to
country risk. It a must to be ready and educated to do risks to ensure high profits in
expanding abroad.

Case 5

Governments intervene in trade and investment to achieve political, social, or economic

objectives. They often create trade barriers that benefit specific interest groups, such as
domestic firms, industries, and labor unions. A key rationale is to create jobs by
protecting industries from foreign competition. Governments may also intervene to
support home-grown industries or firms. In various ways, government intervention alters
the competitive position of companies and industries and the status of citizens.

Required:

Why do government intervene? What would be its impact to the business, community
and country?
Government intervene to be able to create an environment where a business can grow
in a community and country that is guided by laws with a vision of ensuring benefits in all
interest groups. Government intervention can limit the scope and delimitation of the
business especially in producing products and giving services. These interventions are
done to ensure the safety and legality of the transactions.

Thank you for completing the task. If you have

not completed, or have difficulty in accomplishing the
activity, please send me a message to our google
class or you may ask clarifications through a text
message or phone calls on the contact number
included in your course guide.

And now, you are ready for the assessment.

“Not intended for publication. For classroom instruction purposes only”.

Globalization and Business Page

“Not intended for publication. For classroom instruction purposes only”.