In 5 pages, please answer the following questions from Chapters 11, 12 and 13. Text Book: “Global Business Today” Seven Edition. Charles W. L. Hill.
- 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.
- Describe the concept of regional economic integration. Do you believe that regional economic integration is a good thing? Explain your answer.
- 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.
- What are the functions of the foreign exchange market? Would international commerce be possible without its existence?
- What is the difference between a free floating exchange rate and a managed or dirty float system?
- Describe the three broad types of financial crises that have occurred over the past 25 years and have required IMF involvement.
- What are strategic alliances? Are strategic alliances on the rise or decline?
- What is meant by the term, “first-mover advantage?” Describe several first-mover advantages.
- 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.
- 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.