International Business From a Global Perspective

QUESTION ONE:

Under what conditions is it ethically defensible to outsource production to producers in the developing world who have much lower labour costs when such actions also involve laying off long term employees in the firm’s home country?

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QUESTION TWO:

Chapter 5 discusses the benefits of Free Trade. If Free Trade is so beneficial then what are the reasons that a country may restrict trade or put up barriers and why. One example is the resistance of trade unions to Free Trade. Use the concepts in the chapter to formulate your answer. Feel free to use outside sources as well.

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QUESTION THREE:

Page 224 in the text discusses tax incentives vs. export subsidies. In Canada there has been a long-running dispute concerning lumber exports to the US. The US lumber industry has been suing the Canadian lumber industry in the WTO attempting to offset what they feel are unfair pricing tactics by the Canadian government. Research the history of this issue and discuss the pros and cons of each side.

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QUESTION FOUR:

Chapter 7 describes various types of foreign investment ranging from licensing to building on a greenfield site. If you were the CEO of Tim Horton’s, which approach would you use and why? If you were the CEO of Barrack Gold, which approach would you use and why?

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