international trade

1. Establish the essential international trade data for each of your candidate countries using the World Trade Organization’s STAT Portal: Country Profiles, Trade.gov: TPIS Portal Country Report, and World Economic Forum: Global Enabling Trade Report.

Global Trade Balance Metrics Comparative Values, Growth Rates & Index or Ranking Scores

(Most recent year unless requested otherwise, or not available*)

Country A (Advanced) Country B (Emerging)
Trade (% of GDP)

Trade per capita (USD)
Trade Balance (USD)
Trade Openness (imports + exports as % of GDP)
Trade Readiness – (WEF: Global Enabling Trade Report)
Summary Index Result (global rank)
Pillar Element 1.02: Complexity of Tariffs (rank)
Pillar 3: Efficiency and transparency of border administration (pillar rank)

1. Using the World Trade Organization’s STAT Portal: Country Profiles, Trade.gov: TPIS Portal’s Country Report, and World Economic Forum: Global Enabling Trade Report or other resources, establish a global trading profile for the candidate countries. As you collect this information, think about how it informs you on the candidate’s likely comparative and competitive advantages and disadvantages in the global marketplace.

Candidate Global Trade Background Comparative Values, Growth Rates, and Index or Ranking Scores

(Most recent year unless requested otherwise, or not available*)

Country A (Advanced) Country B (Emerging)
Merchandise Trade (MRY) Export Breakdown
Global Exports (USD, % annual change)
% Agricultural (of total)
% Manufactures (of total)
% Fuels and Mining (of total)
% Other (of total)
Top 5 Export Destinations (country, % of total)
Top 5 Nonagricultural Exports (product, USD value or % of total)
Import Breakdown
Global Imports (USD, % annual change)
% Agricultural (of total)
% Manufactures (of total)
% Fuels and Mining (of total)
% Other (of total)
Top 5 Import Destinations (country, % of total)
Top 5 Nonagricultural Imports (product, USD, or % of total)
Merchandise Trade Balance (USD)
Commercial Services (MRY) Export Breakdown
Global Exports (USD, % annual change)
% Transport
% Travel
% Goods-related Services
% ICT goods (% of total imports)
Top 5 Export Destinations (country, %)
Top 5 Nonagricultural Exports (product, USD, or % of total)
Import Breakdown
Global Imports (USD, % annual change)
% Transport
% Travel
% Goods-related Services
% ICT goods (% of total imports)
Top 5 Import Destinations (country, USD, or % of total)
Top 5 Nonagricultural Imports (product, USD, or % of total)
Commercial Services Trade Balance (USD)

1. Using the Trade.gov: TPIS Portal’s Country Report or other resources, establish the nature of bilateral trade relationships between the United States and each candidate country. Then document the industry-specific trade dynamics between the two.

Bilateral Trade Metrics Trade Detailed: USA – Candidate

(most recent year unless requested otherwise, or not available*)

Country A (Advanced) Country B (Emerging)
U.S. Exports to Candidate (USD)
Top 5 U.S. Exports to Candidate (product category, % of total)
U.S. Imports from Candidate (USD)
Top 5 U.S. Imports from Candidate (product category, % of total)
U.S. Trade Balance with Candidate (USD)
Industry-Specific Trade: U.S. – Candidate
U.S. Industry-Specific Exports to Candidate (product or category, USD)
U.S. Industry-Specific Imports from Candidate (product or category, USD)
U.S. Industry-Specific Trade Balance with Candidate (USD)
Additional Industry Specific Bilateral Trade Notes:

1. Using the World Investment Report: UNCTAD and the Bureau of Economic Analysis International Trade and Investment Country Facts Report, research the current FDI activity for each candidate globally and bilaterally with the United States.

Direct investment Positions:

Candidate to World and United States

Comparative Values, Growth Rates, and Index or Ranking Scores

(Most recent year unless requested otherwise)

Country A (Advanced) Country B (Emerging) United States
Global FDI Background (WIR: UNCTAD)
Foreign Direct Investment Total Inflows (USD, trend)
FDI Inflows Top Sources (country, % of total)
Foreign Direct Investment Total Outflows (USD, trend)
FDI Outflows Top Destinations (country, % of total outflow)
Cross Boarder M&A Value—Sales of Country Entities (USD, trend)
Cross Boarder M&A Value—Purchases of Foreign Entities (USD, trend)
Greenfield Investment Projects—Country as Destination (USD, trend)
Greenfield Investment Projects Country as Source (USD, annual trend)
Candidate – US FDI Background (Amount, % Change, total Sales) (BEA)
U.S. direct investment position in candidate (USD, % annual change)
Direct investment position from Australia in the United States (USD, % annual change) N/A
Australian MNEs: Majority-owned affiliates in the

United States (sales USD, # employees)

U.S. MNEs: Majority-owned affiliates in Australia (sales USD, # employees)

Briefly address the following managerial concerns:

1. Briefly survey the trade composition and destinations of each candidate last year. How diversified are the export and import sectors?

1. Based on trade data, would you assert that either candidate has a global comparative advantage in the production of certain products or services? What about with the United States? Do those advantages impact your industry along its global or local value chain? How?

1. Briefly explain factor proportions theory. What factors are most abundant in each candidate country?

1. Briefly survey the foreign direct investment composition and destinations of each candidate.

1. Do the trade or FDI patterns indicate if either candidate presents a competitive advantage that would benefit your industry?

1. Does either candidate have a national industrial policy? In what areas is it seeking to improve candidate country competitiveness?

1. Given the FDI and trade profiles you have developed in this module, place your two candidate country names in all viable internationalization strategy quadrant(s) of the integration-responsiveness framework. Has your perspective changed from last module? Please note the most compelling global and local trade and investment-related factors justifying your recommendation in the rightmost column.

Global Integration Pressure

(Weak) (Strong)

Global Strategy Transnational Strategy Trade and investment-related factors pressuring global value chain integration:

Trade and investment-related factors pressuring local responsiveness:

Home Replication Strategy Multidomestic Strategy
(Weak) Local Responsiveness Pressure (Strong)

1. Applying the international product life-cycle theory to your industry and its products, which candidate looks like it’s the best fit for selling your industry’s existing product lines and technologies? What about manufacturing it?

1. Given the trade environment and investment complexity of each candidate, how centralized do you think corporate governance should be to successfully execute internationalization strategy?

1. Consider the six organizational forms available to you as you plan for internationalization. Are there organizational forms that are better for firms pursuing internationalization only motivated by Mathews’s linkage, leverage, and learning (LLL) theory versus looking for market expansion or cheaper factors of production?

1. How does Dunning’s eclectic paradigm inform management’s logic for selecting an entry mode? Does it favor indirect (e.g., export/import), contractual (e.g., licensing), or direct (e.g., merger or greenfield) entry modes?

Reflection

1. What were the most challenging concepts?

2. As your instructor reviews this submission, is there a topic you would like additional time spent on in your feedback?

 
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