Essay Questions

1. Explain what is meant by the: (i) Globalization of markets, and (ii) Globalization of production. (16 points)

2. (a) Describe translation exposure. How can translation exposure be minimized? (b) How can a firm minimize its foreign exchange exposure? (16 points)

3. (a) What are the implications of cultural differences for international businesses? (b) Discuss the relationship between culture and national competitive advantage. (16 points)

4. According to experts, a decision is acceptable on ethical grounds if a businessperson can answer yes to each of these three questions; list and briefly discuss each of these questions [Hint: lecture notes on Ethics in International Business] (16 points)

5. What is a Greenfield investment? Why would a firm choose this form of FDI? How does it compare to an acquisition? Explain you answer. (16 points)

Requirements:

8 pages

Font, Times New Roman

Font size, 12

Doubled space

I attached the slides that related to the essay questions

Also this is a brief answer for question number 2

(There are several strategies a firm can follow to minimize foreign exchange exposure. First, central

control of exposure is needed to protect resources and ensure that each subunit adopts the correct

mix of tactics and strategies. Second, firms should distinguish between transaction and translation

exposure as compared to economic exposure. Third, the firm needs to forecast future exchange rate

movements. Fourth, the firm needs to establish a good reporting system to monitor the firm’s exposure

positions. Finally, the firm should produce monthly foreign exchange exposure report forms.)

Thank you in advanced