Guidance for Preparing for Midterm Exam 2

1
Guidance for Preparing for Midterm Exam 2

• MNGT 375
• Sections 001 and 002

2

• Exam will be on Wednesday, March 11
• Exam will be all Essay
• Exam will be Open Book, Open Notes
• Midterm Exam 2 covers Chapters 4, 5, 6, and 7,
  and class discussions.
• Review your lecture notes and especially the key
  points identified on the following slides.

3

• Chapter 4
• Be able to explain the concept of ethical
  dilemmas and its relevance to international
  business
• Know the ethical issues in International Business
• Be able to identify and explain the roots of
  unethical behavior, pp. 137-141
• Be able to explain the importance of moral
  courage in resolving ethical dilemmas in the
  context of the stakeholder concept

4

• 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. 195-199
• How the theories of absolute advantage and
  comparative advantage explain and justify trade
• The New Trade Theory and how it explains trade
• Porters 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
• Be able to summarize and explain the development
  of the World Trading System, pp. 218-230.

5

• Chapter 7
• Know the theories explaining Foreign Direct
  Investment (FDI)
• Know the benefits and costs of FDI
• Be able to provide and explain a recommendation
  to your companys CEO regarding the best choice
  among exporting, licensing, or FDI for selling
  your companys advanced PC in Western Europe, per
  question No. 4 on p. 270