UPDATED January 21, 1999

Chapter 1

1. Explain the differences between MNC, MNE, MNO, MDC (Multi-Domestic Corporation), GC (Global Corporation), and WC (World Company).

(handout)   2. "For Coke in India, Thums Up is the Real Thing," Wall Street Journal, April 29, 1998

Chapter 3

3. Summarize the country-based trade theories.

4. Discuss the Leontief Paradox.

5. Summarize the firm-based trade theories.

6. Explain the differences between interindustry trade and intraindustry trade and how are they related to country-based and firm-based trade theories.

Chapter 4

7. What was the significance of the Bretton Woods Conference?

8. Describe the U.S. dollar-based gold standard.

9. Discuss the significance of a capital inflow of $100 billion/year. Refer also to your class notes.

(handout)   10. "Don't Worry, Be Happy: Why the Huge Trade Deficit Ahead May Be Good News," U. S. News, February 23, 1998

Chapter 5

11. What are the synonyms for the term "exchange rate"? Refer also to your class notes.

12. What is the Big Mac Index ? Give an example of how it implies the under or overvaluation of a currency. Refer also to your class notes.

Chapter 6

13. What kinds of tariffs are there?

14. Discuss the issue of nontariff barriers.

Chapter 7

15. What are the various kinds of regional economic integration Explain.

16. Give a time line of the European Union

The following two questions, for the final exam, are based entirely on class notes:

17. What is "Purchasing Power Parity" and how is it related to inflation rates?

18. Compare and contrast the predictions of interest rate parity and purchasing power parity.