​​​ Thread into your answers our class and case discussions on these topics. Do NOT cut and paste material that is electronically available to you while answering these questions. You are welcome to draw from these sources to expand your knowledge about the concepts covered on this exam, but you cannot directly use passages from them as part of your answer. Question # 1: One of the themes we discussed in class this term has focused on the institutional environment of internationalizing firms. In this context, we focused on the evolution of the international monetary system and monetary institutions that facilitate international trade and investment by internationalizing firms. (1a) Marking the benchmarks along your route (ie, Bretton Woods, Smithsonian, Jamaica, Plaza, and the Louvre Accords, etc), trace this evolution from its origins in the gold standard, through the fixed and the floating exchange rate systems to the managed float system we are living in today (20 pts). (1b) Comment on the merits of each of these systems and discuss why you feel the fixed, the floating, or the managed float system is better for today's world economy to function more effectively (10 pts). (1c) in your judgment, what roles should actors, such as national governments and international institutions (ie, the IMF), play in working with these systems (10 pts)? (1d) how would you recommend that we reform this system so that it will function much more effectively? (10 pts) [In addition to our class discussion on this topic, you should consult readings from the internet, ie, the Economist article I shared with you in class in answering this question] Question # 2: We also explored why the internationalizing firm does so. In this context, we discussed theories scholars have offered to explain why international trade and investment take place, what the gains from these are, and how these gains might be distributed among the parties. Our analyses of the Philips vs. Matsushita and the Global Wine Wars cases have helped us understand these issues. In this context: (2a) compare and contrast EITHER (A) the international product life cycle (Vernon) and the oligopolistic reaction (Knickerbocker) theories, OR (B) the comparative advantage (Ricardo) and the competitive advantage of nations (Porter) theories in terms of their power in explaining trade and investment flows (20 pts). (2b) Bring into your discussion the monopolistic advantage (Schumpeter, Hymer) and the liability of foreignness (Hymer, Zaheer) arguments that explain how these might work in the theories you discussed above (10 pts). (2c) In your view, which of these theories explain(s) today's trade and investment flows best and why? (10 pts) (2d) Do you believe that the eclectic theory (Dunning) is the all-encompassing theory it is purported to be? Why or why not? (10 pts) [In addition to our class discussion on this topic, you may consult Malhotra, Agarwal, and Ulgado (Journal of International Marketing, 2003) for help in answering this question] Question # 3: Another theme we studied this semester has focused on global market opportunity assessment, the geography dimension in the firm's internationalization process. In this context, we argued that for effective opportunity assessment, firms need to conduct formalized analyses of the macroeconomic, microeconomic, and cultural environments in which they hope to operate. Under the cultural environment umbrella, we discussed Porter's, Hofstede's, Inglehart's, and Schwartz's approaches to market analysis and learned about how these might be applied to evaluating the attractiveness of various markets for the firm's entry. Given our class discussions on this topic: (a) discuss Porter's, Hofstede's, Inglehart's, and Schwartz's approaches to market analysis comparing and contrasting these in terms of their merits and weaknesses (30 pts); and (b) explain how you might go about applying these to the marketing of a product/service with which you are familiar (20 pts). You are welcome to use any of the cases we discussed in class or any product or service with which you are familiar in answering this question.