GBUS 300 Final

Key points from our India guest Sreedhar’s time with us.

CSB+SJU - Sreedhar India Presentation Spring 2025

Focus in particular on his slides about “Secrets of Success.” I will ask you about some of

the most important points from his presentation to us.

doing business with India, a lot of companies import significant numbers in India, more cost effective yet skilled workforce, population is growing especially in the middle class, flourishing start up ecosystem

• Be clear on your purpose and goals in India

• Adapt to India’s market (don’t copy other countries)

• Plan for a long timeframe (10–30 years) and expect delays

• Always consider worst-case scenarios (Murphy’s Law)

• Business must feel “Indian” (local understanding + leadership)

• Use long-term reviews (yearly, not short-term)

• Ensure strong, consistent leadership (5–7 years minimum)

What are examples of how the US is or is not a country of free trade?

For - Open capital markets, part of the WTO, partakes in trade agreements (USMCA)

Against - tariffs, import quotas, “buy American policies”

From the Group Country Case Studies, know the basics of the cases. Questions

will be not so much about the specifics of the cases but topics from our class

tied to the cases. One question each about 6 of the cases: Poland, Trade in

Services, Higher Education Study Abroad as an Export, Britain Post-Brexit;

RCEP.

need to gather info

Think about and be prepared to write about Justice in this course through text

discussions, case studies and class discussions.

Rooted in the idea that trade should not come at the expense of workers, communities, or developing nations.

Issues like exploitative labor practices, unequal trade agreements, and tariffs that disadvantage poorer countries raise fundamental questions about whether the global trading system is truly just. Understanding justice in this context helps us evaluate not just the efficiency of trade, but its moral fairness across nations and peoples.

Recall our discussions in class about the impact of globalization on lowering

the percentage of the world’s poor living in extreme poverty. We talked often

about Figure 1.6 in Chapter 1.

Graph shows that global poverty has steadily declined over time. From the 1980s to around 2000, the share of people living below both poverty lines stayed fairly high, but after 2000 it dropped much more quickly.

What impact did COVID have on globalization?

COVID severely disrupted global supply chains, revealing how vulnerable interconnected economies are when one part of the world shuts down. It caused many countries and companies to rethink dependence on foreign suppliers, leading to a push for more domestic production and "reshoring."

Know the role Education plays as a determinant of economic development

(Chapter 3 LO3-1, p.75-76)

Education is a critical driver of economic growth because a well-educated, skilled workforce is more productive, innovative, and adaptable to changing industries and technologies.

Countries that invest in education tend to have higher human capital, which attracts foreign investment and enables workers to contribute more effectively to the economy.

 Know the concept of sustainability—end of Chapter 5 LO5-5.

Meeting today's needs without compromising the ability of future generations to meet their own needs

Requiring businesses to consider their impact on society and the environment, not just profits.

Recall Porter’s Diamond and the possible impact of government. I won’t ask

you to name the components of the diamond.

Porter's Diamond explains why certain countries are more competitive than others in specific industries

Government can influence a nation's competitive advantage by shaping the conditions within the diamond through policies like subsidies, education funding, regulations, and trade restrictions that can either strengthen or weaken a country's ability to compete globally.

Can be positive or negative

Know the basics of Foreign Direct Investment—how can it help stimulate

growth in the home economy, free market view of FDI.

FDI occurs when a company invests directly in business operations in another country. From a free market perspective

Benefits both the home and host economies by transferring capital, technology, jobs, and skills across borders.

Stimulates growth by increasing productivity, creating employment, and encouraging competition

Governments should interfere with it as little as possible.

Role of the World Bank

The World Bank provides loans and financial assistance to developing countries to help reduce poverty and stimulate economic growth and development.

Recall infant industry concept and role of government.

New or underdeveloped industries in a country may need temporary government protection (through tariffs or subsidies) from foreign competition until they are strong enough to compete on their own in the global market.

What is dumping from a trade perspective?

When a country sells its exported goods in a foreign market at a price below the cost of production, often to gain market share or get rid of excess supply, which can unfairly undercut domestic producers in the receiving country.

What is the term used when governments temporarily support new industries

until they have grown strong enough to meet international competition?

Infant Industry Protection

What does the WTO argue that removing tariff barriers and subsidies in the

agricultural sector could do?

The WTO argues that removing tariffs and subsidies in agriculture could significantly boost global economic output and raise living standards, particularly benefiting developing nations that rely heavily on agricultural exports.

Foreign Direct Investment: Major players since World War II?

USA, France, UK, Germany, Netherlands, Japan

Impact of shipping cost for products with certain characteristics on trade?

heavy bulky things costs more to ship leading to less profit and incentive to trade international

small things like pharmacuaticals and tech can easily be moved for less shipping cost and more profit

 How do NAFTA and USMCA seem to increase the international competitiveness

of U.S. and Canadian firms?

By eliminating tariffs and reducing trade barriers between the US, Canada, and Mexico, these agreements allow firms to lower production costs by accessing cheaper Mexican labor and materials.

This makes US and Canadian companies more cost-competitive globally

Understand spot and forward exchange rates

• Spot Rate – The current exchange rate at which currencies are bought and sold right now, for immediate delivery.

• Forward Rate – A locked-in exchange rate agreed upon today for a currency transaction that will occur at a set date in the future, allowing businesses to hedge against the risk of currency fluctuations.

Understand the main functions of the foreign exchange market

• Currency Conversion – Converts one country's currency into another to facilitate international trade and investment.

• Hedging – Protects businesses from losses due to unpredictable changes in exchange rates.

• Speculation – Allows investors to buy and sell currencies to profit from exchange rate fluctuations.

• Arbitrage – Taking advantage of price differences in currencies across different markets to make a profit.

Purchasing Power Parity

idea that exchange rates should adjust so that identical goods cost the same in different countries. In other words, a dollar should buy the same amount of goods in the US as its equivalent does in another country.

In reality, prices differ across countries, but PPP is useful for comparing the true economic output and living standards between nations.

Understand why the dollar became and is still the world’s reserve currency as

well as a cost and benefit for the US playing this role.

The dollar became the world's reserve currency after World War II through the Bretton Woods Agreement, when the US had the world's strongest economy and the dollar was tied to gold. Even after the gold standard ended, the dollar remained dominant due to the size and stability of the US economy and its widespread use in global trade.

Benefit for the US: The US can borrow money at lower interest rates because global demand for dollars keeps their value high.

Cost for the US: A strong dollar makes American exports more expensive and less competitive globally, hurting domestic manufacturers and workers

Know John Kotter’s eight-step model for leading organizational change. You

won’t need to recite all eight steps, but know the basics and most important

topics we discussed in class.

framework for leading organizational change that outlines key steps to successfully implement change, including creating urgency, building a strong leadership team, developing and communicating a vision, and sustaining momentum to make the change stick.

According to the article we read and discussed, how many people do you need

to get “on board” with you to successfully create change in your organization?

square root of the number of people in the organization

Recall the article and discussion about Servant Leadership. What are some of

the key points from this article and the one we discussed about engaging

people in the organization, including the Power Point.

• A leadership style where the leader puts the needs of employees first and shares power.

• Focuses on helping people grow, develop, and perform at their best.

• Emphasizes empathy, trust, and ethical decision-making.

What were the key points Kevin Caulfield discussed with us in our class related to

doing business internationally?

Which of the following is a major barrier to trade in services?

A) Tariffs

B) Licensing and regulations

C) Shipping costs

D) Natural resources

B

Trump’s tariffs in 2018 were a net positive for trade and the economy.

A) True

B) False

False

What is the primary driver for the increase in trade in services?

▪ Increased tariffs on manufactured goods

▪ Advances in digital technology and global communication networks

▪ Decline in international transportation costs for physical products

▪ Expansion of agricultural exports in developing countries

Advances in digital technology and global communication networks

T/F By 2040, trade in services is expected to account for 1/3rd of the total

global trade?

True

USMCA Justice Observation

Through trade in services, there are some areas where justice lacks:

▪ Unequal access and opportunity due to wealthy countries dominating

high-value service industries

▪ Wage and labor fairness. Service trade can lead to outsourcing,

where companies move jobs to countries with lower wages

▪ Brain drain vs. brain gain. Highly skilled workers often move from country to country

What was a major economic consequence of Brexit?

A. Increased access to the EU single market

B. Reduced trade barriers

C. Increased trade costs and delays

D. Elimination of all tariffs

C. Increased trade costs and delays

T/F: Brexit allowed the UK to fully maintain all previous trade benefits with the EU.

False

EU Brexit Justice

A Benedictine value highlighted in this project is justice, as Brexit has disproportionately

impacted lower-income individuals and young people by increasing economic hardship,

limiting opportunities, and reducing access to work and mobility across the European

Union.

Which of the following is a key criticism of the RCEP?

A. It eliminates all tariffs immediately

B. It lacks regulation on labor, environment, and state subsidies

C. It excludes major global economies entirely

D. It does not provide much trade utility for member countries

It lacks regulation on labor, environment, and state subsidies

T/F: RCEP may increase dependence of smaller countries on larger ones, particularly China

True

Which factor most contributed to Vietnam attracting foreign direct investment?

A. High corporate taxes

B. Lower labor costs and a young workforce

C. Limited access to global trade

D. High levels of government control

Lower labor costs and a young workforce

T/F: Vietnam’s economy is largely independent of global trade.

False

Justice Related to Vietnam

Justice observation:

Vietnam has done a great job growing its economy and its country, but there are still some

issues such as fairness, income inequality, corruption, and lower wages. This affects

growth because it changes how the growth spreads.

What was one goal of Javier Milei’s reforms?

a. Increase Inflation

b. Reduce government spending

c. Close trade markets

d. Raise subsidies

Reduce government spending

True/False: Argentina’s economy had no major problems before Milei became president

False

Argentina Justice Tie

One major justice issue is that the people most harmed by the reforms were often the

poorest

citizens. While wealthier groups may benefit from long-term stability, lower income

families

faced cuts to assistance, healthcare, and wages. Economic reform should not ignore

those most in

need.

1. Which factor most threatens U.S. higher education exports?

A. Campus size

B. Visa delays

and political tensions

C. Textbook prices

D. Student clubs

Visa delays and political tensions

T/F: Education exports contribute to the U.S. trade surplus.

True

1. Starbucks shows FDI by:

a) Exporting coffee beans only

b) Using only licensing

c) Shifting to greater ownership abroad

d) Avoiding international markets

Shifting to greater ownership abroad

T/F: Singapore is a major world trading hub where it’s easy to start a business?

True

True/False: Poland’s EU membership fully protects it from the effects of global tariffs.

False

Poland Justice

The tariff policy can lead to justice concerns since smaller nations such as Poland might

be adversely affected by policies made by larger countries that hold more power but offer less

input into these decisions.