1. The movement of capital and labor generates overall gains for both the source and host countries. In what ways does this happen?

2. Please explain the gravity equation and what do we really apply it to?

3. What does foreign direct investment (FDI) really mean?

4. Explain the Rybczynski theorem as it relates directly to foreign direct investment (FDI).

5. Why might it be relatively easier for a developing country, such as India, to export service activities through offshoring than to participate in the global economy by producing manufacturing components?

6. Please explain the term isoquants and apply it to a scenario where this term would be used in outsourcing or offshoring.

7. Explain what value chain means and apply the term to an offshoring activity that you would likely implement for your company that you work for or for a company that you might create, including three countries of your choice.

8. What is the difference between offshoring and foreign outsourcing, if any? Please give examples of each if there is a difference.