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“Global Car”

“Global Car”
Order Description
1) Summarize the documentary “Global Car” that I had asked you to watch. Describe one scene from the documentary that you found memorable.

2) I had asked you to read an article about Apple and its iPhone factories in China. When asked, most people say that Western companies manufacture their products in China because of the lower labor costs. However, the readings suggest that there are other, perhaps more important reasons. What are two of these reasons Based on your reading for this class, suggest two policy changes that might make the U.S. a more competitive manufacturing destination.

3) Name 2 theories of international trade which claim that the government has an important role to play in international trade. Explain the role of the government in these theories. Why do we need the government to play this role

4) Suppose there are two countries of equal size, Northampton and Southampton. Both countries both produce and consume two goods: food and clothes. If both countries used all their resources to produce only food, Northampton would produce 50 tons while Southampton would produce 400 tons. If both countries used all their resources to produce only clothes, Northampton would produce 100 tons while Southampton would produce 200 tons. According to Ricardo’s theory of comparative advantage, what should these countries do in order to maximize their own ability to consume clothes and food Should they specialize in any one product If so, which country should specialize in what product Should they trade with each other

5) If you read the theories of absolute/comparative advantage, you would expect that tropical countries will grow and export bananas while temperate countries will grow and export wheat. Similarly, countries with a highly educated work force will export high-tech goods, while a country with a less educated work force will export garments. If this is true, then countries like Germany and France, both with similar climates, workforces, and resources, should not trade with one another. Yet, this is not the case. What theory of international trade might offer an explanation for this phenomenon. How does it explain this

6) Suppose you are the president of a country that is industrially advanced (think Sweden or Japan). You want to promote the high-fashion shoe industry in your country and make it globally competitive. List 3 policies you would adopt, and explain why.

7) Go to the following web site: https://tinyurl.com/4rmlsr3 Once on the web page, scroll down the column on the left, and check the boxes for China, the US, and Zambia. Compare the foreign direct investment of all three countries. What does the graph tell you Don’t just describe the graph (I can see it myself). I am more interested in your analysis. I am looking for evidence that you have read the chapter on FDI and that you understand the concepts. Use the appropriate terminology that the textbook uses while talking about FDI.

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