Assignment:
Part I
1. In a world without trade, what would happen to the costs that American consumers would have to pay for Logitech's products?
2. Explain how trade lowers the costs of making computer peripherals such as mice and keyboards?
3. Use the theory of comparative advantage to explain the way in which Logitech has configured its global operations. Why does the company manufacture in China and Taiwan, undertake basic R&D in California and Switzerland, design products in Ireland, and coordinate marketing and operations from California?
4. Who creates more value for Logitech, the 650 people it employs in Fremont and Switzerland, or the 4,000 employees at its Chinese factory? What are the implications of this observation for the argument that free trade is beneficial?
5. Why do you think the company decided to shift its corporate headquarters from Switzerland to Fremont?
6. To what extent can Porter's diamond help explain the choice of Taiwan as a major manufacturing site for Logitech?.
7. Why do you think China is now a favored location for so much high-technology manufacturing activity? How will China's increasing involvement in global trade help that country? How will it help the world's developed economies? What potential problems are associated with moving work to China?
Part II
1.Discuss the basic idea behind economic integration. What is the European Union? What advantages does it offer its members? How does Britain's approach to the euro and now to debt resolution within the bloc fit into the concept?
2.Is Britain isolating itself by not agreeing to work with the rest of the European Union or is it protecting itself and its sovereignty? Could Britain actually emerge stronger as a result of this decision?
3.British Foreign Secretary William Hague has stated that Britain should be part of Europe, but be taken over by Europe. What did he mean by this? Do you agree with him? Why or why not?
4.Britain, along with France and Germany, were founding members of the European Union. Consider how the bloc might change if Britain is indeed isolated after its recent rejection of the fiscal deal.