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1. Use the theory of comparative advantage to explain the way in which Logitech has configured its global operations. Why does the company manufacture in China and Taiwan, undertake basic R&D in California and Switzerland, design products in Ireland, and coordinate marketing and operations (rain California?

2. Who creates more value for Logitech, the 650 people it employees in Fremont and Switzerland, or the 4,000 employees at its Chinese factory? What are the implications of this observation for the argument that free trade is beneficial?

3. Why do you think the company decided to shift its corporate headquarters from Switzerland to Fremont?

4. To what extent can Porter's diamond help explain the choice of Taiwan as a major manufacturing site for Logitech?

5. Why do you think China is now a favored location for so much high-technology manufacturing activity? Flow will China's increasing involvement in global. trade help that country? How will it help the world's developed economies? What potential problems are associated with moving work to China?

6. What is the basis of Ecuador's comparative advantage in the production of roses?

7. Most Ecuadorean roses are sold in the United States or Europe. Who in these countries benefits from the importation of Ecuadorean roses, and how do they benefit? Who loses? Do you think the benefits outweigh the costs?

8. How does the rose export industry benefit Ecuador? Do these benefits have any implications for the United States and Europe?

9. How should developed nations respond to reports of poor working conditions in this industry? Should importers in some way certify Ecuadorean producers, only importing from those who adhere to strict labor and environmental standards?

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