Question 1Explain Vernonâs product cycle in terms of the global development of the market for pharmaceuticals and software and the development of the Indian drug and software industries.Question 2Explain Porterâs Diamond and how Nokiaâs development as an international mobile telcom company illustrates it.Question 3Large MNEs dealing in multiple markets constantly face exchange rate issues that if not properly managed can have severe adverse consequences. Explain how the VW and JAL cases illustrate this point and how they could have better managed their exposures.Question 4Explain Absolute, Comparative and Competitive Advantage and how Intel and Toyota are examples of all three concepts.Question 5Explain briefly the US Foreign Corrupt Practices Act, why it applied to a foreign company such as Siemens, Siemensâ corrupt practices, how it was caught and prosecuted, and how and why it has worked to change its culture.Question 6Software, movies and pharmaceuticals are particularly subject to piracy but firms such as Exxon, Intel or GM producing oil products, ICs or autos, do not face these problems despite their well-known brands and trademarks. Explain the economics of why this is so.Question 7Explain privatization and why given GEâs experience in Hungary it is now interested in pursuing privatized FDI in Myanmar.Question 8Country A has 2000 units of labor and can produce two goods, manufactures and food. Aâs producers take 2 units of labor to produce one unit of manufactures and 5 units to produce one food unit. Country B has 2500 units of labor and takes 5 units of labor to produce one unit of manufactures and 10 units to produce one unit of food. At what price of food in terms of manufactures would A and B respectively supply food? Would trade take place in between A and B in David Ricardoâs world? How manymanufactures could A supply?Question 9US imports oil at the world price, $90 per barrel. The domestic supply curve in barrels per day is S = 1500000 + 150000P with P in dollars. Domestic demand curve is D = 65,000,000 – 500000P. Draw the US demand and supply curves for oil and indicate how many barrels are imported per day and the value per year.Question 10Companies can face cultural problems that impact their business prospects even in developed countries. Explain how Walmartâs experiences in Germany and Japan and Disneyâs experiences in France support this statement.
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