International Business Mod05 Nontariff Barriers Are More Difficult Assess And The Nonquantitative Barriers Such Standards

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-12

2. Would you consider an international internship, traineeship, or volunteer position to build

your global mind-set? Share your strategy for developing your international management

skills.

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-13

END OF MODULE EXERCISES

CRITICAL THINKING QUESTIONS

1. Why might a government-owned firm have an unfair advantage over privately owned

companies?

2. Why do countries that are committed to open market and capitalism have publicly owned

enterprises?

3. When they accept foreign assignments, how can expatriates prepare for risks associated

with such an assignment?

4. If you were responsible for developing your company’s international strategy, what role

would country risk assessment play?

5. Why do U.S. consumers tolerate paying, at times, as much as twice the world sugar price

for their sugar supply? How might an economist evaluate the U.S. sugar policy?

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-14

6. Why could carrying cheese as you drive across the border from the United States into

Canada be risky behavior?

7. It seems that free, unrestricted international trade, in which each nation produces and

exports products for which it has a comparative advantage, will enable everyone to have a

higher level of living. Why, then, does every country have import restrictions?

This seems a contradiction. Almost all nations belong to the World Trade Organization and have

committed to moving towards free trade. Yet the reality suggests that each nation would prefer

8. A protectionist argument for the defense industries suggests that since we need them, we

must protect them from import competition by placing restrictions on competitive imports. Is

there an alternative to trade restrictions that might make more economic sense to consider in

this case?

9. Governments assert that their safety standards for food imports are important to ensure

that their citizens not be harmed by unsafe foods. Comment on how such a concern may be a

nontariff barrier.

10. Almost all governments are on guard against dumping. Why would a government be

opposed to its citizens or businesses being able to obtain products at lower costs?

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-15

11. A union leader in the auto industry argued, “Workers are paid $20 an hour in the United

States but only $4 in Taiwan. Of course we can’t compete. We need to protect our jobs from

cheap foreign labor.” What are some possible problems with this statement?

12. There are two general classifications of a nation’s import duties: tariff and nontariff

barriers. Which would be more difficult for a business in consumer products to factor into its

export pricing?

Nontariff barriers are more difficult to assess, and the nonquantitative barriers such as

GLOBALEDGE RESEARCH TASK

Exercise 1

globalEDGE ‘Global Insights’ is where profiles of trade blocs, countries, U.S. states, and

Exercise 2

Market Potential Index (MPI) is available under the ‘Tools and Data’ tab on the top menu. The

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-16

MINICASE: Chocolate: Is Your Treat the Result of Unfair Labor and the Exploitation of Child

Labor?

1. Should labor practices in another country be a relevant consideration in international

trade? Why or why not?

This question offers an opportunity for students to reason through the ethical issues and the

business realities of child labor. One approach is to position the late economist Friedman’s

2. With regard to trade products such as cocoa, what options are available to governments,

businesses, and consumers for dealing with practices such as child labor or slave labor in

other countries? What are the implications associated with each of these options?

Governments can establish trade boycotts and certification requirements. These approaches

carry compliance costs to the business and slow down or constrain the movement of supplies.

3. How would international trade theorists view the Fair Trade movement?

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-17

BONUS ACTIVITIES

VIDEO SUGGESTIONS

McGraw Hill’s collection of international business videos is available at

TEAM EXERCISES

1. Country Risk Exercise

In small teams (up to 5 members), ask students to prepare a country risk assessment or a

regional risk assessment for an assigned area or country, and then, evaluate the prospects for

2. Team Research on Nationalization

Assign small student teams the task of researching examples of nationalization, both with and

3. Research on the Effect of Lobbying on Government Trade Positions

Public advocacy organizations influence the actions of governments in their positions on trade

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-18

SUPPLEMENTAL ACTIVITIES

Case Studies

Case studies that focus on intercultural issues and their effects in business environments are

Ivey Cases

“Solartron C” focuses on expatriate adjustment in Africa. The company has a government

CONTROVERSAL ISSUES

1. Country Risk Assessment

After a discussion of CRA, based on the readings, ask students to discuss which types of

business would be most and least vulnerable to political risk.

Here is a brief outline of one possible approach to this discussion question, one that would

work well as an in-class team assignment.

Most Vulnerable

Least Vulnerable

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-19

2. Relations with Cuba

Diplomatic relations with Cuba have recently been re-established and U.S. sanctions placed on

this island nation presently are under review. Discussion of the Cuban sanctions, including their

TERM PAPER OR PROJECT TOPICS

These topics may be assigned as individual or collaborative projects:

1. Rather than a term paper on a specific module, we recommend that a term paper on a

3. Review of sanctions and their effectiveness.

5. Exploration of some of the ways defenses against terrorism have impacted businesses.

TEACHING SUGGESTIONS

1. This chapter is very important to students’ understanding of the political forces that affect

2. We encourage a review of current events and application of the module’s topics at the

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-20

4. Guest lecturers could include political science, economics, and history professors who work

in the area of economic thought. Managers from local businesses that have been affected by

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

CONNECT TOOLS FOR ASSESSEMENT OF LEARNING

Connect Content Matrix

For every chapter, please refer to the Connect Content Matrix to see what application exercises

are available and what Learning Objectives they help reinforce/assess.

Title

Assignment

Type

Topic(s)

Learning

Objective(s)

AACSB

Accreditation

Tagging

Bloom’s

Taxonomy

Political

Challenges of

Poverty: An Indian

Young Mogul and

the Poor

Video Case

Trade Restrictions

05-01; 05-02;

05–03

Reflective

Thinking

Understand

Terminology in

Practice

Click and Drag

Nationalization and

Privatization of

Business

05–01

Knowledge

Application

Apply

Google in China:

Politics and Trade

Restrictions

Video Case

Government Policies

Affecting Trade

05–04

Analytical

Thinking/

Reflective

Thinking

Understand/

Analyze

Evaluating

Country Risk

Click and Drag

Managing Political

Risk and Differences

05–03

Analytical

Thinking

Understand

Why

Governments

Intervene

Click and Drag

Government

Intervention in Trade

05–04

Analytical

Thinking

Understand/

Analyze

CONNECT ACTIVITIES

1. Political Challenges of Poverty: An Indian Young Mogul and the Poor

Activity Summary: This is a video case in which students learn about a 20-year-old Indian mogul

2. Terminology in Practice

Activity Summary: This click and drag activity asks students to select the correct term that

International Business, 2e

Geringer, McNett, Ball

Instructor Guide to Module 5

05-22

Education.

individually as an internet assignment. Consider current events that may apply to this activity

and discuss in class.

3. Google in China: Politics and Trade Restrictions

Activity Summary: After watching a short video about Google leaving China, students are asked

4. Evaluating Country Risk

Activity Summary: In this click and drag activity, students are asked to select boxes that

5. Why Governments Intervene

Activity Summary: In this click and drag activity, students match actions of government