Reference no: EM132592201

Ch. 35: Financial Economics

1. You were invited to speak about international business in a high school advanced placement class. After your talk, one of the students asks you, "Why do companies bother to set up operations overseas. They lose as often as they win. Isn't the U.S. a large enough market for them?" What do you say to this group of environmentally conscious, intelligent teens? Please be aware that most large U.S. companies make more than HALF of their sales overseas to foreign consumers

2. What is the time value of money and how can compound interest be used to calculate the present value of any future amount of money?

3. How is the word "risk" used in financial economics and what is the difference between diversifiable and non-diversifiable risk?

Ch. 38: International Trade

4. Free trade initiatives argue against tariffs, quotas, and any other barriers to trade. However, the rush of imports from countries with a comparative advantage often meets with resistance from domestic industries threatened by those imports. As a manager who understands the arguments for free trade whose industry is threatened by cheaper imports, what is your opinion of this issue?

5. Many jobs have been transferred from the United States to lower-wage countries. The difference now however, is that rather than blue-collar jobs being transferred, the new trend is for white-collar jobs to move, jobs associated with the knowledge-based economy. Will the United States suffer from the loss of highly skilled and high paying jobs? What does the transference of white-collar jobs mean to the average American?

6. What is the validity of the most frequently presented arguments for protectionism?

7. What are the economic effects of tariffs and quotas?

Ch. 39: The Balance of Payments, Exchange Rates, and Trade Deficits

8. Who are the winners and who are the losers if a currency, let's say the Japanese yen, weakens?

9. Who are the winners and who are the losers if a currency, let's say the yen, strengthens?

10. Please include in your list exporters, importers, consumers, tourists, international students among other stakeholders. To make sure that your answer is clear, write one section on the first question and one section on the second question.