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Task 4 Economic Development

Economic development strives through practices and policies to improve the economic, political, and social well-being of the people of a particular country or region. As you complete these activities you will begin to better understand the impact of economic development on international business. You will also begin to investigate trade among nations and how economic development affects trade.

Learn about the differences in undeveloped, developing, and developed countries and issues of political risk.

                          1. Watch
                          2. Read Chapter 4 section on Classifying Countries.
                          3. Answer the Quick Study Questions 1 to check your understanding.
                          4. Read Chapter 4 section on Political Risk and Managing Political Risk
                          5. Answer the Quick Study Question 3 and 4.

Investigate international trade.

                          1. Watch
                          2. Watch
                          3. Read Chapter 5 section 1 – 6
                          4. Answer the Quick Study Questions 1 – 6 to check your understanding.

Investigate the political economy of trade.

                          1. Watch
                          2. Read Chapter 6 section on Why Governments Intervene in Trade
                          3. Answer the Quick Study Questions 1 to check your understanding.
                          4. Read Chapter 6 section on Global Trading Systems

Complete the Ethical Challenge

You are a member of a World Trade Organization task force that is reviewing the nine-year banana conflict between the United States and the European Union (EU). The EU was giving preferential treatment to banana exporters from Africa, the Caribbean, and the Pacific island nations. But the United States challenged what it saw as unfair trading practices and the World Trade Organization agreed. The U.S. action gained support from global fruit companies Dole, Chiquita, and Del Monte, which account for nearly two-thirds of the fruit traded worldwide. The EU argued it was supporting struggling economies for which bananas make up a large portion of their income.

  1. Should international trade be left to private enterprise only, or should governments openly manage it to benefit poorer nations?
  2. Would you have argued on behalf of the United States or the EU? Explain.
  3. What are the pros and cons of each side’s arguments?

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