SECOND  IN-CLASS  TEST
 

Write brief essays on three of the following topics.
 

1. Define international competitiveness, and present two key measures.  In what ways does Krugman feel that the debate over U.S. competitiveness is (a) inaccurate and (b) misleading or even dangerous?  What’s your assessment of Krugman’s arguments?
 
2. What are the four elements of Porter’s “diamond” underlying national competitive advantage?  What roles can government play in supporting these elements?
 
3. What does Castells mean when he counterposes the concept of an informational economy to that of a post-industrial economy?  What empirical trends does he present for sectoral and occupational shifts in G-7 countries over the 1920-90 period?  How do these trends support his argument that post-industrialism is a misnomer?  Be able to encapsulate (very much in an overview fashion) the major differences among the trends in these countries.
 
4. (From Castells), what are the empirical relationships between (a) technological advance and (b) the number, type, and security of jobs in wealthy countries?  Identify at least two contingencies in these relationships:  factors upon which the operation of the relationships depend.
 
5. How do the contingencies of corporate export-related goals and resources, and target-market characteristics, affect export-planning decisions concerning product-adaptation policy, promotion policy, and distribution channels?
 
6. What are the alternatives within each of the three key variables for export payment?  Given these alternatives (and the availability of forward markets and factoring companies), briefly describe three ways that an exporter can avoid or hedge currency risk.  Briefly describe two ways that an exporter can avoid credit risk.