DEFINITIONS

bill of lading (what is it and what are its four functions?)
C&F.  (discussed in class, 12/2)
C.I.F.  (discussed in class, 12/2)
certificate of origin
currency arbitrage
currency option
currency speculation
depreciation (or appreciation)
devaluation (or revaluation)
F.A.S.  (discussed in class, 12/2)
F.O.B.  (discussed in class, 12/2)
exchange rate
(outright) forward contract
forward rate
freight forwarder
hard currency
letter of credit (It's a letter -- from whom to whom, saying what?  What 4 parties are named on a confirmed letter of credit?)
pro forma invoice
spot rate

EXPLANATIONS

What are [at least three] influences on the change in a bilateral exchange rate, and how do the influences operate?

What are key distinctions among various forms of international business (i.e., what is actually provided between "home" and "host" countries, in return for what), and under what circumstances would a "parent" company (the company with the asset or advantage that may be useful in another country) choose one or another?

Be able to use Dunning's eclectic framework (the OLI framework) to explain why a company would engage in exporting versus international licensing versus FDI.

What are the components of an international marketing plan;  in what ways do the components need to work together (e.g., be able to construct an example of a particular motivation for exporting, and how that might affect each of the components of a marketing plan)?

What are the three key variables in export payment?  What options are within each variable?  What determines which options an exporter will pursue?  What are some of the ways an exporter can avoid exchange risk?

What are the pros and cons of "fast track authority"?  [Brainard & Shapiro]
 

Discuss the development of trade policy in Canada, during the 20th century, with a major focus on Canada's trade relationships within North America:

• What have been the dominant policies, at what times, during the century?
• How would you characterize Canada's comparative advantages, especially relative to the other two countries?  What factor endowments have influenced those comparative advantages?  Have the factor endowments or comparative advantages changed during the century?  Are any acquired advantages relevant to explaining Canada's trade?
• Why did Canada enter into an FTA with the US?  Why did Canada join NAFTA?
• Given the elements above, how should NAFTA affect Canada:  who should benefit and who should suffer (within Canada)?

Select one of the following major international economic institutions:  IBRD;  IMF;  GATT and its successor, the WTO.  [We discussed this in small groups on 11/23;  Bello;  Curtis & Ciuriak;  Larson;  Stiglitz;  Curtis & Ciuriak; lecture notes]

• What do the initials stand for?
• Why was it established?  What was its purpose?
• How has its purpose changed over time?
• What imbalances of power exist among countries, and among interests (e.g., corporations, labor, consumers, agricultural interests), in the decision making of the institution?  What causes these imbalances?  What measures would ameliorate the imbalances?