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International business the challenge of global competition 13th edition ball solutions manual • 1. Chapter 02 - International Trade and Foreign Direct Investment 2-1 International Business The Challenge of Global Competition 13th Edition Ball SOLUTIONS MANUAL Full download: global-competition-13th-edition-ball-solutions-manual/ International Business The Challenge of Global Competition 13th Edition Ball TEST BANK Full download: global-competition-13th-edition-ball-test-bank/ CHAPTER 2 International Trade and Foreign Direct Investment Learning Objectives LO2-1 Appreciate the magnitude of international trade and how it has grown. LO2-2 Identify the direction of trade, or who trades with whom, and trends in such trade.

LO2-3 Outline the theories that attempt to explain why certain goods are traded internationally. LO2-4 Explain the size, growth, and direction of foreign direct investment LO2-5 Explain several theories of foreign direct investment. NOTE: International business statistics, data, and facts about countries, regions, governments, and companies can change rapidly and dramatically. We recommend that you update this information regularly.

Request PDF on ResearchGate On Jan 1, 2013, John Michael Geringer and others published International Business: The Challenge of Global Competition.

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In partnership with PBS, iGlobe is a free video service for McGraw-Hill adopters that allows you to download breaking news videos onto your desktop to show in class or online. Updated monthly, these streaming videos are complete with teaching notes and discussion questions. Key concepts for each video are identified to save you time! Visit www.mhhe.com/ball13e, or talk to your McGraw-Hill sales representative for more information about iGlobe or the IB Newsletter.

Overview This chapter addresses three major concerns, the state of international trade, that of foreign investment, and then an exploration of why businesses enter foreign markets. International trade and foreign direct investment have grown dramatically over the last three decades. Although new trading and investment patterns are emerging, developed nations tend to trade with and invest primarily in other developed nations, and not in developing countries. Trade theories attempt to explain why nations trade with each other. Mercantilists (1550 to 1800 and perhaps on-going) believed that trade should be a vehicle for accumulating gold. Adam Smith, • Chapter 02 - International Trade and Foreign Direct Investment 2-2 displeased with mercantilist ideas, showed that a nation could acquire what it does not produce by means of free, unregulated trade.

A nation could gain most by producing only goods that it could produce with less labor than other nations. Ricardo carried Smith’s argument a step farther by proving that a country that was less efficient in the production of all goods could still gain from trade by exporting those products in which it was less inefficient.

Firms go abroad either to increase profits and sales or protect them from being eroded by competition. Avast oshibka zaversheniya processa ustanovki. To increase profits and sales, they may enter new markets, go to markets that promise to help them obtain greater profits, or enter markets in order to test market. The competitive moves are motivated • Chapter 02 - International Trade and Foreign Direct Investment 2-3 to protect the home market, to attack competition in their home market, to protect their foreign markets, to guarantee supply of raw materials, for geographic diversification, and to satisfy management’s desire.