Read the cases from the textbook. Chose a question from each chapter below and give your answers (no more than 2 pages total with double-space):
OPENING CASE: U.S. Tariffs on Chinese Solar Panels Benefit Malaysia
QUESTION 1: Regardless of its effect on domestic employment, do you agree with the decision by the United States and European Union to impose tariffs on Chinese solar panels?
QUESTION 2: Discuss the response by U.S. and EU manufacturers to the sanctions on Chinese solar panels. What are the ethical and economic implications of the decision to open manufacturing facilities in Malaysia?
QUESTION 3: What other strategies might the United States and EU use to stimulate their domestic solar panel industries and eliminate the incentive to outsource production to other countries?
CLOSING CASE: Sugar Subsidies Drive Candy Makers Abroad
QUESTION 1: Who benefits from subsidies to U.S. sugar producers? Who loses?
QUESTION 2: Do the benefits of U.S. government support to the U.S. sugar industry outweigh the losses?
QUESTION 3: What do you think would happen if the U.S. government removed all support for U.S. sugar producers?
QUESTION 4: Government support programs for sugar producers were introduced in the 1930s, yet they are still in place today, long after the original rationale disappeared. What does this tell you about political decisions relating to international trade?
QUESTION 5: If you had the power to make changes here, what would you do, and why?
OPENING CASE: Volkswagen in Russia
QUESTION 1: What were the primary motivators that convinced Volkswagen to invest in Russian manufacturing facilities?
QUESTION 2: How did the changing economic landscape in Russia affect the factors that brought Volkswagen to Russia? How might those changes affect Volkswagen’s future operations there?
QUESTION 3: What other strategies might Volkswagen have pursued to gain a foothold in Russia without taking on such a large financial risk?
CLOSING CASE: Foreign Direct Investment in Nigeria
QUESTION 1: What factors held back the flow of foreign direct investment (FDI) into Nigeria for most of the country’s history as an independent nation?
QUESTION 2: Why did foreign direct investment into Nigeria start to accelerate after the mid-2000s?
QUESTION 3: How do you think FDI might benefit the Nigerian economy? Is there any potential downside to Nigeria from more FDI?
QUESTION 4: Nigeria is largely dependent on oil exports to drive its economy forward. What impact do you think the sharp fall in global oil prices that occurred in 2014 will have on FDI into Nigeria?
QUESTION 5: Nigeria’s government is currently fighting a vicious insurgency mounted by Boko Haram in the country’s remote and sparsely populated northeast. Should this be of concern to potential foreign investors, most of whom invest in the country’s populated southern region?
QUESTION 6: Imagine that you work for a large consumer products company selling basic household goods. List the pros and cons of investing in Nigeria. Under what circumstances would you recommend investing?