Zero Transportation Cost

Question 1

The World Bank offers information on the business environment in different countries. To explore the information, go to worldbank website, click on “Countries” at the bottom of the screen, and select a country in which you are interested. You might want to choose the country you are using for your term project–though that is not required.

Review information on the site regarding U.S. investments in the country and also countries in which the chosen country is investing. Discuss what you discovered. What does this tell you about the country? If you were asked to build a manufacturing facility in this country, what would you recommend? Why?

Question 2

In a world of zero transportation costs, no trade barriers, and nontrivial differences between nations with regard to factor endowments, firms must expand internationally if they are to survive. Discuss.

no more than 500 words

Question 3

How do you explain the use of countertrade? Under what scenarios might its use increase further by the year 2020? Under what scenarios might its use decline?

Answer the question in no more than 500 words

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