1. What are the international and regional institutions that comprise the global monetary
and financial system? What role do these institutions play in promoting global
business operations?
2. Discuss how the "Big Mac Index" discussed in Chapter 10 can accurately calculate
Purchasing Power Parity (PPP).
3. Can any product or service be marketed globally? If it sells in the United States, does it sell in
another country? Explain why or why not.
4. Your manufacturing firm must decide whether to make a component part in-house, or to
contract it out to an independent supplier located abroad. Manufacturing the part requires a
significant non-recoverable investment in specialized equipment. The most efficient
suppliers are located in countries with currencies that many foreign exchange analysts
expect to grow stronger against the $US over the next decade.
Which option would you recommend? Explain the reasons behind your decision.
5. From what you have learned from the past 4 weeks, do you believe that Globalization
has “Improved” or “Degraded” life more for people of the world.
