希尔国际商务课后习题参考答案英文版.docx
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希尔国际商务课后习题参考答案英文版.docx
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希尔国际商务课后习题参考答案英文版
希尔国际商务课后习题参考答案英文版
LT
a)HowhasparticipationintheinternationalrosetradehelpedEcuador’seconomyanditspeople?
HowhastheriseofEcuadorasacenterforrosegrowingbenefitedconsumersindevelopednationswhopurchasetheroses?
Whatdotheanswerstothesequestionstellyouaboutthebenefitsofinternationaltrade?
b)WhydoyouthinkthatEcuador’sroseindustryonlybegantotakeof20yearsago?
Whydoyouthinkithasgrownsorapidly?
c)TowhatextentcantheallegedhealthproblemsamongworkersinEcuador’sroseindustrybelaidatthefeetofconsumersinthedevelopedworldandtheirdesireforperfectValentine’sDayroses?
d)DoyouthinkgovernmentsinthedevelopedworldshouldplacetradesanctionsonEcuadorrosesifreportsofhealthissuesamongEcuadorianroseworkersareverified?
WhatelsemighttheydotoimprovethesituationinEcuador?
a)Ecuadoristheworld’sfourthlargestproducerofroses.Infact,rosesrepresentthecountry’sfifthlargestexport.TheindustryisvitaltoEcuador’seconomy,creatingtensofthousandsofjobs,jobsthatpaysignificantlyabovethecountry’sminimumwage.Taxesandrevenuesfromtherosegrowershavealsohelpedtopaveroads,buildschools,andconstructsophisticatedirrigationsystems.ForEcuador’sconsumers,thesuccessoftheindustrymeansbigger,morevibrantflowersthanwerepreviouslyavailable.MoststudentswillrecognizethattheconditionsinEcuadorgivethecountryadistinctadvantageinrosegrowing,andthatbyfocusingontheindustry,Ecuadorhasbeenabletobenefitfrominternationaltrade.ConsumersinothercountriesalsobenefitfromEcuador’sflowerexportswithbetterproducts.
b)Ecuador’sroseindustrybegansome20yearsago,andhasbeenexpandingrapidlyeversincethen.Moststudentswillprobablyfocusadvancesintechnologyasakeytotheindustry’ssuccess.Rosesareaveryfragile,perishableproduct.Moderntechnologyenablesgrowerstousedrefrigeratedairtransporttogettheproducttomarketsaroundtheglobe.Withoutthatability,thegrowerswouldbelimitedtothemarketimmediatelysurroundingthecountry.
c)Studentswillprobablybedividedonthisissuewithsomestudentsarguingthatconsumersaretoblamefortheproblems,andothersplacingtheblameonthegrowers.Studentstakingthefirstperspectivewillprobablysuggestthatmostconsumerspurchasetheirroseswithlittleconsiderationforhowtheyaregrown.Rather,mostconsumerssimplyfocusontheirbeautyandprice.Studentsblamingthegrowersmightarguethatgrowers,becausetheyfeeltheeffectofless-than-perfectrosesintheformofsmallerprofits,willbemotivatedtofindwaystoproduceevermoreperfectflowers.Certainly,theuseofpesticidesandotherproductscanproduceabettercrop.Intheend,thereisprobablyblameonbothsides.Ifmoreconsumerswereawareofthehealthproblemsresultingfromtheimproperuseofpesticides,theywouldprobablydemandsomechanges.Similarly,ifpressurewereputonthegrowerstousepesticidessafely,healthproblemscouldbereduced.
d)Tradesanctionsareatoolthatisoftenemployedbygovernmentsthataremakingastatementagainstaspecificactionoractions.InthecaseofEcuador,tradesanctionscertainlywouldbeanoption,aswouldpublicizingthesituationsothatmoreconsumerswereawareoftheconditions.Intheendthough,itisimportanttoconsidertheeffectofthesanctionsorothermeasuresonpeoplelikeMariawhomightlosetheirlivelihoodasaresult.
Chapter2:
NationalDifferences
1.Freemarketeconomiesstimulategreatereconomicgrowth,whereasstate-directedeconomiesstiflegrowth!
Discuss.
Answer:
Inamarketeconomy,privateindividualsandcorporationsareallowedtoownpropertyandotherassets.Thisrightofownershipprovidesapowerfulincentiveforpeopletoworkhard,introducenewproducts,developbetteradvertisingcampaigns,inventnewproducts,etc.,allinthehopesofaccumulatingadditionalpersonalcapitalandwealth.Inturn,theconstantsearchonthepartofindividualsandcorporationtoaccumulatewealthenrichestheentireeconomyandcreateseconomicgrowth.Incontrast,inacommandeconomy,privateindividualsandcorporationsarenotallowedtoownsubstantialquantitiesofpropertyandotherassets.Theobjectiveofacommandeconomyisforeveryonetoworkfor“thegoodofthesociety.”Althoughthissoundslikeanobleideal,asystemthatasksindividualstoworkforthegoodofsocietyratherthanallowingindividualstobuildpersonalwealthdoesnotprovideagreatincentiveforpeopletoinventnewproducts,developbetteradvertisingcampaigns,findwaystobemoreefficient,etc.Asaresult,commandeconomiestypicallygeneratelessinnovationandarelessefficientthanmarketeconomies.
2.Ademocraticpoliticalsystemisanessentialconditionforsustainedeconomicprogress.Discuss.
Answer:
Thisquestionhasnoclear-cutanswer.IntheWest,wetendtoarguethatdemocracyisgoodforeconomicprogress.Thisargumentislargelypredictedupontheideathatinnovationistheengineofeconomicgrowth,andademocraticpoliticalsystemencouragesratherthanstiflesinnovation.However,thereareexamplesoftotalitarianregimesthathavefosteredamarketeconomyandstrongpropertyrightsprotectionandexperiencedrapideconomicgrowth.Theexamplesincludefourofthefastestgrowingeconomiesofthepast30years–SouthKorea,Taiwan,Singapore,andHongKong–allofwhichhavegrownfasterthanWesterneconomies.However,whileitispossibletoarguethatdemocracyisnotanecessarypreconditionfortheestablishmentofafreemarketeconomy,itseemsevidentthatsubsequenteconomicgrowthleadstoestablishmentofdemocraticregimes.Severalofthefastest-growingAsianeconomieshaverecentlyadoptedmoredemocraticgovernments.
3.Whatistherelationshipbetweencorruption(i.e.,bribetakingbygovernmentofficials)inacountryandeconomicgrowth?
Iscorruptionalwaysbad?
Answer:
Economicevidencesuggeststhathighlevelsofcorruptionsignificantlyreducetheeconomicgrowthrateinacountry.Bysiphoningoffprofits,corruptpoliticiansandbureaucratsreducethereturnstobusinessinvestment,andhence,reducetheincentivethatbothdomesticandforeignbusinesseshavetoinvestinthatcountry.Thelowerlevelofinvestmentthatresultshasanegativeimpactoneconomicgrowth.However,whilemoststudentswillprobablyagreethatcorruptionisbad,somemaypointoutthattheU.S.,despiteitsForeignCorruptPracticesAct,doesallow“greasepayments”toexpediteorsecuretheperformanceofaroutinegovernmentalaction.AccordingtoCongress,“greasepayments”whiletechnicallybribesarenotbeingusedtoobtainormaintainbusiness,butratheraresimplymadetofacilitateperformanceofdutiesthattherecipientsarealreadyobligatedtoperform.
4.TheNobelprize-winningeconomistAmartyaSenarguesthattheconceptofdevelopmentshouldbebroadenedtoincludemorethanjusteconomicdevelopment.WhatotherfactorsdoesSenthinkshouldbeincludedinanassessmentofdevelopment?
HowmightadoptionofSen’sviewsinfluencegovernmentpolicy?
DoyouthinkSeniscorrectthatdevelopmentisaboutmorethanjusteconomicdevelopment?
Explain.
Answer:
SenhasarguedthatdevelopmentbeassessedlessbymaterialoutputmeasuressuchasGNPpercapita,andmorebythecapabilitiesandopportunitiesthatpeopleenjoy.Sensuggeststhatdevelopmentbeseenasaprocessofexpandingrealfreedomsthatpeopleexperience,andassuch,thatdevelopmentrequirestheremovalofmajorimpedimentstofreedom.GovernmentsinfluencedbySenmightensurethatbasichealthcareandeducationprogramsareavailableespeciallyforwomen.ManystudentswillagreewithSenandthenotionthatdevelopmentisnotjustaneconomicprocess,butapoliticalonetoo,andthattosucceedcitizensmustbegivenavoiceintheimportantdecisionsmadeforthecountry.
5.YouaretheCEOofacompanythathastochoosebetweenmakinga$100millioninvestmentineitherRussiaortheCzechRepublic.Bothinvestmentspromisethesamelong-runreturn,soyourchoiceofwhichinvestmenttomakeisdrivenbyconsiderationsofrisk.Assessthevariousrisksofdoingbusinessineachofthesenations.Whichinvestmentwouldyoufavorandwhy?
Answer:
Whenassessingtherisksofinvestment,oneshouldconsiderthepolitical,economic,andlegalrisksofdoingbusinessineitherRussiaortheCzechRepublic.Atthistime(Fall2002),theriskinRussiawouldprobablybeconsideredhigherthantheriskintheCzechRepublic.TheCzechRepublichasjustbeenacceptedasafuturememberoftheEU,andassuchgainsthebenefitsandstabilityofferedbytheEU.Russia,bycontrast,isstillmanyyearsawayfromevenbeinginapositiontobeconsideredbytheEUformembership.Dependinguponwhenyouareusingthebook,thissituationcouldbedifferent.(Youalsomaywanttosubstituteothercountriesintothisquestiondependingoncurrenteventsandthecountrieswithwhichyoufeelyourstudentswillbemostfamiliar.)
6.ReadtheCountryFocusonIndiainthischapterandanswerthefollowingquestions:
a.WhatkindofeconomicsystemdidIndiaoperateduring1947-1990?
Whatkindofsystemisitmovingtowardstoday?
Whataretheimpedimentstocompletingthistransformation?
b.Howmightwidespreadpublicownershipofbusinessesandextensivegovernmentregulationshaveimpacted(i)theefficiencyofstateandprivatebusinesses,and(ii)therateofnewbusinessformationinIndiaduringthe1947-1990timeframe?
HowdoyouthinkthesefactorsaffectedtherateofeconomicgrowthinIndiaduringthistimeframe?
c.Howwould
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