Part-1

Remember to describe/define, give an example if possible, and explain the significance of the term. PLEASE WRITE CLEAR AND COMPLETE SENTENCES. To explain significance, ask yourself these questions: why is this thing important in International Business? Or How has it influenced international business events? Or How is it used in European and foreign business? Or What can we learn about International Business from this thing?

1. Globalization 6. Foreign direct investment (FDI)
2. Purchasing power parity (PPP) 7. Value creation
3. Strategic Alliance 8. Cross-cultural literacy
4. Exchange rate(s) 9. Regional economic integration
5. Entry Strategy (to foreign market) 10. Six Sigma
11. Marketing mix 12. Push-Pull strategies
13. Price elasticity of demand 14. Money management

Part-2

Answer two of these questions in a strong, thoughtful, focused, well-supported, thoroughly explained, organized essay which shows your opinion, amazing analysis skills, and deep understanding of the course material. Be sure to use ideas, examples, and terms from this course in your essay. PLEASE WRITE YOUR ESSAY AS NEAT AS POSSIBLE.

1. List and explain the five forms of economic integration.
2. Outline why the culture of a country influences the costs of doing business in that country. Illustrate your answer with examples.
3. A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to decide how best to serve the European Community market. Its choices are:
a. Manufacture the product at home and let foreign sales agents handle marketing.
b. Manufacture the products at home and set up a wholly owned subsidiary in Europe to handle marketing.
c. Enter into a strategic alliance with a large European pharmaceutical firm. The product would be manufactured in Europe by the 50/50 joint venture and marketed by the European firm.
The cost of investment in manufacturing facilities will be a major one for the Canadian firm, but it is not outside its reach. If these are the firm's only options, which one would you advise it to choose? Why?
4. Prior to 1997, Diebold manufactured its ATM machines in the United States, and sold them internationally via distribution agreements, first with Philips NV and then with IBM. Why do you think Diebold choose this mode of expanding internationally? What were the advantages and disadvantages of this arrangement? THEN
Diebold entered China via a joint venture, as opposed to a wholly owned subsidiary. Why do you think they did this? THEN Is Diebold pursuing a global standardization strategy or a localization strategy? Do you think this choice of strategy has impacted upon its choice of entry mode? How?