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    INTERNATIONAL BUSINESS Chapter 6

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    Zebi Magnolia Fawwaz
    1. The document discusses several topics related to international business and trade, including mercantilism, fair trade, trade barriers, costs of free trade, and whether China follows a neo-mercantilist model. On each point, the document provides an analysis and discussion of the issues from different perspectives. 2. In response to several discussion questions, the document argues that while free trade can benefit consumers, it may negatively impact domestic industries and jobs. It also notes trade barriers aimed to protect domestic industries can restrict competition. 3. Regarding China, the document notes there is debate around whether it intentionally manipulates its currency and trade policies to boost exports and foreign exchange reserves, though its trade surplus has

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    INTERNATIONAL BUSINESS Chapter 6

    Uploaded by

    Zebi Magnolia Fawwaz
    104 views3 pages
    1. The document discusses several topics related to international business and trade, including mercantilism, fair trade, trade barriers, costs of free trade, and whether China follows a neo-mercantilist model. On each point, the document provides an analysis and discussion of the issues from different perspectives. 2. In response to several discussion questions, the document argues that while free trade can benefit consumers, it may negatively impact domestic industries and jobs. It also notes trade barriers aimed to protect domestic industries can restrict competition. 3. Regarding China, the document notes there is debate around whether it intentionally manipulates its currency and trade policies to boost exports and foreign exchange reserves, though its trade surplus has

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    1. The document discusses several topics related to international business and trade, including mercantilism, fair trade, trade barriers, costs of free trade, and whether China follows a neo-mercantilist model. On each point, the document provides an analysis and discussion of the issues from different perspectives. 2. In response to several discussion questions, the document argues that while free trade can benefit consumers, it may negatively impact domestic industries and jobs. It also notes trade barriers aimed to protect domestic industries can restrict competition. 3. Regarding China, the document notes there is debate around whether it intentionally manipulates its currency and trade policies to boost exports and foreign exchange reserves, though its trade surplus has

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    104 views3 pages

    INTERNATIONAL BUSINESS Chapter 6

    Uploaded by

    Zebi Magnolia Fawwaz
    1. The document discusses several topics related to international business and trade, including mercantilism, fair trade, trade barriers, costs of free trade, and whether China follows a neo-mercantilist model. On each point, the document provides an analysis and discussion of the issues from different perspectives. 2. In response to several discussion questions, the document argues that while free trade can benefit consumers, it may negatively impact domestic industries and jobs. It also notes trade barriers aimed to protect domestic industries can restrict competition. 3. Regarding China, the document notes there is debate around whether it intentionally manipulates its currency and trade policies to boost exports and foreign exchange reserves, though its trade surplus has

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    ZEBI MAGNOLIA FAWWAZ

    18110221562

    IR-221SP

    INTERNATIONAL BUSINESS

    CRITICAL THINKING AND DISCUSSION QUESTION

    1. Merchantilism is a bankrupt theory that has no place in the modern world. Discuss
     I think it is a bakrupt theory and there is no place for mercantilism in the modern
    business scenario. Because, the nation wealth is managed by the hands of private
    businesses not the government. Private people do business with government
    support and pay taxes for it.

    2. Is free trade fair? Discuss!


     Free trade is a system of trade policy that allows traders to act and or transact
    without interference from government. According to the law of comparative
    advantage the policy permits, trading partners mutual gains from trade of goods
    and services. Bu there is Fair trade. It refers to exchanges, the terms of which meet
    the demands of justice. In my opinion free trade isn’t fair, because the product can
    be manufactured in the developed country at a lower cost and the same product
    needs higher manufacturing costs in developing countries. Developing countries
    should also depend on other nations for every product and service in this situation.
    This can be a disadvantage to those countries.

    3. Union in developed nation often oppose imports from low-wage countries and advocate
    trade barriers to protect jobs from what they often characterize as “unfair” import
    competition. Is such competition “unfair”? Do you think that this argument is in the best
    interests of (a) the unions, (b) the people they represent, and/or (c) the country as a whole?
     Low-wage nations produce similar items for less than a developing nation could.
    The explanation that unions in developing nations restrict imports from low-wage
    nations is the expansion in the rivalry. With a comparable item at a lower cost, the
    purchasers will clearly pick the less expensive item. This is awful for businesses
    in developing countries. When a business doesn't progress nicely, joblessness
    increases and at last, no one will get an advantage. Regardless of whether we
    believe this to be "unfair" relies upon what viewpoint we take. Obviously, a low-
    wage nation imagines this is ordinary since they are the ones profiting the most. If
    by chance they couldn't beat their opposition, they would not have a high
    employment rate. Then again, on the off chance that we are taking a gander at the
    circumstance as a creating country, we would be extremely restricted. Obviously,
    the immediate reaction as a customer would be fulfilled, however, this constant
    minimal effort rivalry would kill business and increase joblessness, thus will lead
    to a weaker economy. In spite of the fact that the customers may get direct profit,
    generally speaking, it isn't to the best interest of the unions, the people, or the
    country as a whole.

    4. What are the potential costs of adopting a free trade regime? Do you think government
    should do anything to reduce these costs? What?
     Free trade has helped in the general monetary upliftment of nations. USA based
    organizations used to include their production lines inside the nations. Organized
    commerce approaches have redistributed the significant works onboard in nations
    like China & Bangladesh. Free trade policies have helped in the general addition
    of the employments, generation and by and large advancement of countries. The
    exchange made difficulties to the specialist and business that made local
    challenges and brought mechanical change. The dynamic economy has made new
    openings and new businesses giving chances to the jobless. In my opinion, the
    government should make a suitable environment for the free trade policies so it
    can upgrade and create advancement for the overall infrastructure, trading, and
    centre around the upliftment of the individual's life. The import expense can be
    decreased on the significant necessities things for everyday life.

    5. Reread the Country Focus “Is China a Neomercantilist Nation?”


     Is China a neo-mercantilist nation that is purposely demoralizing imports and
    urging sends out so as to develop its exchange surplus and collect remote trade
    holds, which may give it monetary power? The jury is out on this issue. Doubters
    recommend that going ahead, the nation will have no real option except to build
    its imports of items that it needs, for example, oil. They likewise note that China
    started permitting the estimation of the yuan (China's money) to acknowledge
    against the dollar in July 2005, yet at a moderate pace. In July 2005 one U.S.
    dollar bought 8.11 yuan. By January 2012, the one dollar obtained 6.38 yuan, a
    decay of 21 percent. Subsequently, China's exchange surplus has begun to
    contract as fare development has eased back and imports have expanded. In 2011,
    the surplus was $155 billion, down generously from the $290 billions of every
    2008. While this recommends China's exchange surplus may have topped until
    further notice, it is as yet a reason for worry in many created countries, and
    especially the United States.

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