PART 1

1. Discuss the trends in the flow of FDI between countries since the mid to late 1990s.

2. Why do firms prefer FDI to either exporting or licensing?

3. Compare the free market view of FDI to the pragmatic nationalism view. Which view do you find the more appealing and why? 

4. What are the benefits and costs of FDI to the host country?

5. What are the benefits and costs of FDI to the home country? 

PART 2

1. Discuss the different levels of economic integration.

2. What are the primary benefits of regional economic integration?

3. When the European Union adopted the Euro as a common currency, member countries gave up their national currencies. Assume that the U.S., Canada, and Mexico (the NAFTA countries) were considering eliminating their domestic currencies and adopting the Americas as the sole currency for all three countries. Based on what you have studied about the adoption of the Euro, what benefits would this generate for the three countries? What costs? Would you recommend this change or not, and why

4. Discuss the EU financial crisis.