Your midterm exam will consist of 5 short answer questions (20 points each) and of 1 essay question (50 points). Answers to a short answer questions should be of approximately half a page. Answers to an essay question should be at least one page long but there is NO MINIMUM. Since you are given the questions ahead of time, QUALITY of answers is expected.

Short essay questions

• Can be on any case study.
• Can be on/similar to any individual assignment.
• Can be similar to exercise done in class (including all foreign exchange exercises, BRING A CALCULATOR).
• Can be on any of the class handouts.
• Can come from the following list:

• Which are the ten richest countries in the world? What is their current economic situation?
• Choose one good and one service industry (total = 2 industries). What is their current global situation? Future?
• How appropriate is it for governments to intervene in international business?
• Compare common and code law.
• Discuss the primary roles of the IMF and Worldbank.
• What are the major elements of culture?
• Discuss any four of the elements of culture.
• What is meant by the self-reference criterion?
• Comment on the assumption "If people are serious about doing business with you, they will speak English".
• How do high-context cultures differ from low-context ones?
• Describe the _____________ theory of international trade. [Can be any of the reviewed theories]
• According to the theory of comparative advantage as explained by Ricardo, why is trade always possible between two countries, even when one is absolutely inefficient compared to the other?
• Briefly discuss the different stages of the product cycle theory. What are the trade implications of this product cycle?
• What is the balance of payment of a nation?
• List the different subcategories of the current account and the financial account.
• What is the current state of the U.S. balance of payment?
• Give an example of a balance of payment disequilibrium that led to crisis in a country or group of countries. Be specific.
• Briefly discuss the Bretton Woods Agreement.
• What factors influence foreign exchange rates?
• What is a forward rate? How do banks set forward rates?
• What is managed float?
• What issues must be considered in international taxation?
• What are the arguments surrounding economic integration?
• Explain the following terms: (a) free trade area, (b) customs union, (c) common market, and (d) economic union.

Will be picked from the following list:

• Do you foresee an increased, decreased, or changed role of the institutions governing international trade and investment? Explain.
• To improve on GATT, the WTO was established. Explain what the WTO is, how it is different from GATT, and what specific functions the WTO is expected to perform.
• What are the different types of economic regulations or laws a host government can impose to restrict or control the international activities of firms? Explain.
• List and define the primary components of Hofstede’s classification scheme for classifying cultures. Comment on the effect these various elements might play on marketing products internationally.
• Briefly discuss the different types of foreign currency exposures that a firm may have and how to manage these exposures.
• Discuss the evolution of the European Union. What are the implications of this European Union?