The document outlines the weekly schedule and content for a business and economics class. It includes the following:
- A group presentation on how culture influences business internationalization.
- A quiz with questions on theories of international trade such as mercantilism and the costs and benefits of free trade.
- A closing case study on Bangladesh's rise as a textile exporter due to factors like low wages and industry networks.
- A debate on whether free trade is fair and the situations where trade barriers may be justified.
- An upcoming focus on the regulatory framework surrounding international trade.
2. Objectives
Group 1 Presentation
20 min, 10 min QnA
Quiz
Tutorial Questions
3. Ground Rules for Presentations
Presenters: All the best!
Audience:
– RESPECT
– ENGAGE
– ASK QUESTIONS
4. Group Presentation
Group 1: Culture in International Business
How does religion influence the values and norms found within a given
country’s culture? What implications are raised by religion for a firm
seeking to internationalise?
How does social structure influence the values and norms found within a
given country’s culture? What implications are raised by social structure
for a firm seeking to internationalise?
How does language influence the values and norms found within a given
country’s culture? What implications are raised by language for a firm
seeking to internationalise?
5. Quiz time
TWO TEAMS
10 POINTS FOR RIGHT ANSWER
5 POINTS FOR PASSED ANSWERS
Prizes
7. Mercantilism - a country should maintain a trade surplus,
even if that means that imports are limited by government
intervention.
Bankrupt theory because:
– Inconsistent with the general notion of globalization.
• Eventually, a country will find it difficult to export if
it imposes oppressive quotas and tariffs on its
imports.
– Consumers in the mercantilist country suffer.
• Denied access to either “cheaper” or more
“sophisticated” goods from other countries.
8. QUESTION 3
What are the potential costs of
adopting a free trade regime?
Do you think governments
should do anything to reduce
these costs? What?
10. THE RISE OF BANGLADESH’S
TEXTILE TRADE (PG. 206)
CLOSING CASE:
11. Why was the shift to a free trade
regime in the textile industry good
for Bangladesh?
QUESTION 1
12. Until 2005, Bangladesh’s opportunities in the
developed nations were governed by a quota
system.
Introduction of free trade policies enabled
Bangladesh to increase its exports.
Competitive advantage in the production of textiles.
– low cost, productive labour force.
– strong network of supporting industries.
Also, attracted Western importers looking to
diversify their supplier base.
13. Who benefits when retailers in the
United States source textiles from
low wage countries such as
Bangladesh? Who might lose? Do
the gains outweigh the losses?
QUESTION 2
15. What international trade theory,
or theories, best explain the rise
of Bangladesh as a textile
exporting powerhouse?
QUESTION 3
16. Exporting powerhouse:
– Relatively low wages.
– Investments in boosting productivity
levels.
– Network of supporting industries.
Theory of comparative advantage
Porter’s theory of competitive advantage
17. How secure is Bangladesh’s
textile industry from foreign
competition? What factors could
ultimately lead to a decline?
QUESTION 4
18. Bangladesh is attractive due to:
– low cost garments
– the opportunity for importers to diversify their supply base
(Importers do not want to solely rely on China and see
Bangladesh as an attractive alternative to hedge risks).
However, their infrastructure could prove to be problematic for
its exporters.
– If importers find that infrastructure problems disrupt their
supplies, they could begin to look for new source
countries.
– Bangladesh should make the necessary investments to
avoid any disruptions in the industry.
20. Trade theory suggests that specialization
and free trade benefits all countries.
However, a case can be made in some
situations for imposing trade barriers. E.g.:
– Infant industry argument
– National security
– Greece?
21. Revision Quiz
According to Mercantilism, what should a country try to
maintain?
True or False: According to Free trade Theory, Government
should control imports.
What is Michael Porters trade theory called?
List two advantages of Free trade theory.