Park University International Business and Foreign Markets Paper

Description

Directions

Please answer any two (2) of the following questions. Begin by restating the question you selected and then post your answer immediately following each selected question.

Explain how the theory of comparative advantage relates to the need for international business.

Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets.

If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions of imperfect markets? Why?
Following the terrorist attack on the U.S., the valuations of many MNCs declined by more than 10 percent. Explain why the expected cash flows of MNCs were reduced, even if they were not directly hit by the terrorist attacks.

Explanation & Answer:

2 pages

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