GLOBAL BUSINESS. MBA 621-47. SPRING 2022
FINAL EXAM
The Test consists of nine short-essay questions of which you should answer eight. Questions 1 to 6 are compulsory. However, you should drop one of the questions 7 to 9 that you like the least and answer eight. Answering all nine questions will not improve your score. Each answer is worth 0 to 5 points. Max total is 40 points, equivalent to maximum possible 100% score for the Exam. When answering questions enter your answers right after the respective questions. Recommended length of answers – 150 to 200 words per answer (about half a page of handwritten text). If you need more space – use the reverse side of the page. In answering the questions, you can rely on any Course material resources you may find useful. Provide (brief) reference for sources used as in “According to the Wall Street Journal…” Do not rely on “copy and paste” answers from the internet. Express your answers in your own words. I reserve the option to use “Safe Assign” software to verify the degree of originality of your answers.
ESSAY-TYPE QUESTIONS
1. The economic sanctions imposed on Russia in response to its “special operation” in Ukraine can develop into a total isolation of Russia from the global economy. What consequences will follow from it for the U.S. and for the global business? Use a few examples to illustrate your points. Enter your answer here.
2. Competition from foreign goods destroys American jobs. However, re-shoring production currently based in foreign countries back to the U.S. can lead to higher prices. Do you think American consumers will agree to pay these higher prices to help firms keep jobs in this country? To give you some food for thought on this issue, review this Boston Globe essay. Enter your answer here.
3. Whose interests should be the paramount concern of government trade policy: the interests of producers (businesses and their employees) or those of consumers?
After answering above, now take your answer one step further and discuss how the experience of the US trade war with China over the past four years might influence your answer. Enter your answer here
4. Test FOREX market IQ in predicting FOREX rates 6 months into the future using the same three currency tables we used in class for the British pound, but now for the Canadian Dollar. Provide predicted and actual Forward Premium or Forward Discount for this currency, annualized. If you knew on 03-16-2016 the exchange rate of the Canadian Dollar on 09-16-2016 what FOREX trade would you consider entering on 03-16-2016 to make a profit?
Note: This question is mostly computational, so there is no recommended length for an answer.
5. What US-made goods would you consider for export to Cuba if and when the US trade embargo for this country is lifted? Give 2-3 examples. What logistical, insurance and also payment arrangements would you use for actual exporting there? For logistical an insurance arrangement(s) refer to INCOTERMS table. Be sure to briefly justify your choices.
Enter your answer here.
6. Imagine you have $100 million and want to invest it in a major manufacturing project outside of the US. Suppose you know the average rates of return on investment in each of about 200 countries of the world. What other factors would you consider selecting your target country?
Enter your answer here.
7. Some observers believe that religions can play an important role in economic success of nations and individual businesses. Which religions, in your opinion, are more helpful and which are less helpful in that regard? Why? Provide a few examples to illustrate your points. Enter your answer here.
8. Compare and contrast the impact of corona virus crisis on economy and business
in the two largest world economies – the US and China. How economic and political system of these countries influenced it? Use a few examples to illustrate your points.
Enter your answer here.
9. Choose a country from among the ones you travelled to recently or plan to travel, or the one you are doing your FOREX project on. Look up where it stands in the most recent World Bank “Doing Business” ranking of countries; and Transparency International Index of corruption. Explain/comment on its standing. Use the U.S. standing as a reference.
Enter your answer here.