DISCUSSION, DUE WEDNESDAY:

Question (200 WORDS MINIMUM, use powerpoint and lecture to help answer the questions in addition to your own research)

More than 500 U.S. firms have developed offices or factories in China. Many other U.S. firms have become exporters to China in recent years. However, the U.S. government has periodically threatened to restrict business between the United States and China until China improves its human rights record. The U.S. Chamber of Commerce has estimated that heavy restrictions of U.S.–China business could cause layoffs of 150,000 U.S. workers. Should the United States use trade restrictions as a means of encouraging improvements in human rights in some countries? If so, how will this affect U.S. firms that are considering business in less developed countries?

ANSWER THE FOLLOWING 2 QUESTIONS, DUE SATURDAY:

• Cite all your sources per APA (both in the body and at the end of the report)
• Professional papers are written in passive voice or as a third person. Omit “I”, “we”.
• Quality is more important than quantity. Approximate length of this report should be 2 pages, answering the following 2 questions.

1. Explain how the theory of comparative advantage relates to the need for international business. 2. Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets.