1-2) Globalization. Define globalization. What forms of globalization are of greater interest to the business person? What forms are of greater interest to the general person? Explain differences in the two lists.

1-6) Impact of Technology. "Technology and innovation inevitably lead to globalization." Support this statement by providing at least two recent examples.

1-9) Trade Theory. Most theories of trade do not explain why a country might simultaneously export and import the same product. For instance, the US is simultaneously an exporter and importer of airplanes. What theory explains this phenomenon?

1-11) Location Theory. Using theories of industry agglomeration explain (a) the location of business process (human resources, accounting, etc.) outsourcing firms in Bangalore, India and (b) the location of financial services firms in NY City.

1-13) MNC Risks. "MNCs face greater risks than purely domestic firms." What are some of the arguments supporting and disproving this statement?

1-15) Centralization vs. Decentralization. Are most MNCs centralized or decentralized? What are some pros and cons of choosing one organizational form over another?

Extension 1) Bilateral Trade between Developed Nations

In 2005, U.S. exports to Ireland were valued at $9 billion, while Irish exports to the U.S. totaled $28 billion. The range of U.S. exports includes electrical components and equipment, computers and peripherals, drugs and pharmaceuticals, and livestock feed. Irish exports to the United States represent approximately 20% of all Irish exports, and have roughly the same value as Irish exports to the UK .

Exports to the United States include alcoholic beverages, chemicals and related products, electronic data processing equipment, electrical machinery, textiles and clothing, and glassware.

Irish exports to the United States from January to September 2006 rose by 7% compared to the same period in 2005, while Irish imports from the United States from January to September 2006 fell by 14% compared to the same period in 2005.

Use theories of international trade to explain this bilateral trade relationship. In your opinion is this a large volume of trade?

Extension 2) Bilateral Trade and Entities.

Mexico is among the world's most open economies, but it is dependent on trade with the U.S., which bought about 82% of its exports in 2007. Top U.S. exports to Mexico include electronic equipment, motor vehicle parts, and chemicals. Top Mexican exports to the U.S. include petroleum, cars, and electronic equipment.

Does this list provide clues about the types of entities conducting cross-border trade between the US and Mexico? Explain.

Extension 3) Bilateral Trade between Developed and Developing Nation.

Peru registered a trade surplus of $8.8 billion in 2006. Exports reached $23.7 billion, partially as a result of high mineral prices.

Peru's major trading partners are the U.S., China, EU, Chile and Japan. In 2006, 23.0% of exports went to the U.S. ($5.9 billion) and 16.0% of imports came from the U.S. ($2.9 billion).

Exports include gold, copper, fishmeal, petroleum, zinc, textiles, apparel, asparagus and coffee. Imports include machinery, vehicles, processed food, petroleum and steel.

Peru belongs to the Andean Community, the Asia-Pacific Economic Cooperation (APEC) forum, and the World Trade Organization (WTO). Uses theories of trade to explain this data.