1. Define Institutions (Min: 600 words)
Define institutions in the context of business strategy and explain the role of institutions when considering entering a foreign market. Provide at least one example of a country where weak institutions may serve as a barrier to entry for a U.S. firm.
Support your analysis by referencing and citing at least three credible sources in addition to the course textbook, which can also be cited in your essay.
2. Trade Liberalization (500 words)
What role does trade liberalization (i.e., reducing barriers to trade) play in fostering economic growth and development? In your response, address the following points succinctly:
- What effect do lower trade barriers have on the price of domestic goods?
- What effect do lower trade barriers have on domestic producers of products that compete with imports?
- What additional economic development benefits might trade liberalization bring to a developing country (e.g., knowledge)?
- If you can, suggest mechanisms that could make the liberalization process more beneficial to economic development?
Support your analysis by referencing and citing at least two credible sources. (One can be your text; others may include scholarly journal articles, business or law journal articles, textbooks, news publications, etc.).