Assignment:
Answer the following questions:
Question 1. What is meant by the term Foreign Direct Investment? Describe the difference between the flow of foreign direct investment and the stock of foreign direct investment.
Question 2. Describe the concept of regional economic integration. Do you believe that regional economic integration is a good thing? Explain your answer.
Question 3. Please briefly explain the following forms of economic integration: free trade area, customs union, common market, economic union, and full political union. Provide an example of each form of economic integration.
Question 4. What are the functions of the foreign exchange market? Would international commerce be possible without its existence?
Question 5. What is the difference between a free floating exchange rate and a managed or dirty float system?
Question 6. Describe the three broad types of financial crises that have occurred over the past 25 years and have required IMF involvement.
Question 7. What are strategic alliances? Are strategic alliances on the rise or decline?
Question 8. What is meant by the term, "first-mover advantage?" Describe several first-mover advantages.
Question 9. What are the six different ways for a firm to enter a foreign market? Provide a brief description of each of these foreign market entry strategies.
Question 10. Describe the mechanisms for financing export and imports. Do you believe that the complexity of export financing deters small firms from becoming involved in exporting? Explain your answer.