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Guidance for Preparing for Midterm Exam 2 – Fall 2013

Guidance for Preparing for Midterm Exam 2 – Fall 2013. MNGT 375 Sections 1 01 and 103. Exam will be on Wednesday , October 16, 2013 Exam will be all Essay Bring your own paper – do not use bluebooks Midterm Exam 2 covers Chapters 5, 6, 7, and 8 and class discussions.

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Guidance for Preparing for Midterm Exam 2 – Fall 2013

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  1. Guidance for Preparing for Midterm Exam 2 – Fall 2013 MNGT 375 Sections 101 and 103

  2. Exam will be on Wednesday, October 16, 2013 • Exam will be all Essay • Bring your own paper – do not use bluebooks • Midterm Exam 2 covers Chapters 5, 6, 7, and 8 and class discussions. • Review your lecture notes and especially the key points identified on the following slides.

  3. Chapters 5, and 6: • Be able to give an explanation of trade theory and its implications to your neighbor who knows nothing about the theory. You should consider: • The benefits and concerns about trade • Why a current account deficit may not matter, see pp. 197-201 • How the theories of absolute advantage and comparative advantage explain and justify trade, and how the theories were demonstrated in the Chapter 5 Case, “Logitech,” pp. 195-196. • Porter’s diamond of “National Competitive Advantage” as a framework for understanding international competition and trade • The types of trade policy instruments that governments use to manage trade and governments’ motivations for managing trade • Be able to summarize and explain the development of the World Trading System, pp. 222-234.

  4. Chapter 7: • Know the theories explaining Foreign Direct Investment (FDI) • Be able to explain the ideologies associated with FDI • Know the benefits and costs of FDI • Be able to explain how the theories of FDI help to explain the FDI of Spain’s Telefonica (pp. 272-273)

  5. Chapter 8: • Be able to explain the meaning of regional economic integration and the levels of economic integration • Be able to explain the case for and the case against regional integration • Know the institutions of the European Union

  6. AGAIN New York Times article “Economic Recovery, Made in Bangladesh” May 14, 2013 • Go to the following web link for the article indicated at the top of this slide: http://www.nytimes.com/2013/05/19/magazine/economic-recovery-made-in-bangladesh.html?pagewanted=all • As with midterm exam 1, you will be able to bring a hard copy of the article for this midterm exam 2, so print out a copy of the article. • Be able to explain: • The “T-shirt” phase through the trade, product life cycle, and national competitive advantage theories. • The benefits and problems associated with the “T-shirt” and garment trade. • Why governments might wish to manage the “T-shirt” and garment trade. • How each of the ideologies of Foreign Direct Investment might describe the “T-shirt” and garment trade.

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