Global Managerial Economics

Your boss in the U.S. home office wants to know your perspective on the following. How do international sanctions, tariffs, quotas, and trade restrictions affect international trade and costs of production? How do tariffs and sanctions on the import of auto engines into the U.S. affect production and costs at Acme? Do you agree with trade restrictions? When do you think they are successful? Why or why not?

Global Managerial Economics

Details: Does free trade encourage pollution as corporations build factories and plants in countries with more lenient air and water pollution controls? Or does it encourage higher standards, as better controls and higher standards are brought in with the growing corporations? The CEO and COO in the USA hope to use your writing and experience to convince other employees of the value of what Acme is doing abroad. They have asked that you write an article for the company newsletter about the success of an outside company in multinational partnership. This will denote to readers that Acme has done its research and seeks to do the same with care for the host environment. They will write and i... click for more

Global Managerial Economics

Details: Your cousin's latest interest is The International Monetary Fund, about which you are now chatting online. The IMF was established by the United Nations in 1944 to provide loans to countries in financial distress at a relatively low interest rate. Nations having balance-of-payments problems can borrow from the IMF for short time periods and such loans include economic and financial stipulations on the debtor nation. Typically, such stipulations require that the debtor nation follow an austerity program that limits government spending, domestic consumption, and imports. Your cousin wants to know, what do you think about the goal of the IMF’s aid to distressed countries? What h... click for more

GLOBAL MANAGERIAL ECONOMICS

Details: For multinational corporations, friction costs arise where practices of the firm are seen by the public as exploitative or unethical. These actions lead to public criticism and loss in the value of the company’s goodwill and may translate into measurable sales losses. There is growing evidence that a corporation's image can become a competitive advantage due to positive gains in consumer approval. In the U.S., there are a number of indications that so-called "green consumers" represent an increasingly important niche in various sales markets, and companies that are environmentally exemplary and go beyond the minimum legal requirements can gain market advantages. Empirical st... click for more

Global Managerial Economics

Details: Upon your return home, you receive an invitation to speak to a class at the local high school. You are to be part of a panel of three local people considered to have experience in international business. The question you are assigned to answer is "What are some obstacles to successful international economic policy coordination?"