1) Why do countries introduce trade barriers?
Analyse the alternative trade barriers and then discuss the effect of a tariff / subsidy / quota / demand & supply / foreign investment / foreign exchange.
2) Critically evaluate the notion that the Ricardian view of the demonstrates that bilateral free trade is beneficial to both trading partners.
Chapter 3
– Absolute advantage (Adam Smith) *specialisation
– Comparative advantage (David Ricardo) *opportunity cost
etc…
3) A film is planning to expand its business to overseas. As a consultant , what are the different alternative methods available for the firm to enter the foreign markets?
Assess the advantage and disadvantage of each alternative method.
Chapter 2
– Indirect export
– Direct export
– Licensing
– Franchising
– Joint Ventures
– Direct investment
4) As the property prices in HKare increasing rapidly, many people in HK cannot afford to buy a flt, Instead, they are seeking the opportunity to buy flats in foreign countries.
Your friend is interested in purchasing a flat in Japan in coming months. He asks for your advise with the USD-JPY exchange rate from 2003-2017 as below.
???? 1
Critically analyse the situation for you friend. What factors should you friend take into consideration before making his decision?