Debate the relative merits of fixed and floating exchange rate regimes. From the perspective of an international business, what are the most important criteria in a choice between the systems? Which system is the more desirable for an international business?
2. What opportunities might current IMF lending policies to developing nations create for international businesses? What threats might they create?
3. Imagine that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for (a) international businesses and (b) the flow of trade and investment among the three countries?
4. In what kind of industries does a localization strategy make sense? When does a global standardization strategy make the most sense?
5. In a world of zero transportation costs, no trade barriers, and nontrivial differences between nations with regard to factor endowments, firms must expand internationally if they are to survive. Discuss.
Instructions for Submission:
The completed assignment should be 2 to 3 pages in length, not including your title page or reference page.
Answers should demonstrate understanding of concepts and ideas expressed in the textbook, but outside sources may be used to support your ideas and provide relevant real-world examples.
All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.
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