• Department of economics econ: multinational corporations reading response task i – within one and a half day( 36hours) answer the question based on the reading materials and don't plagiarize! read the following two papers to answer the questions below. both papers (unctad. 2011. non-equity modes of international production and fragmentation of production, wir 2011; and bivens, l. j. 2005. truth and consequences of offshoring, briefing paper, economic policy institute) are posted on the blackboard course page. limit your answers to a maximum of five pages. each question carries seven points. 1. describe the following terms as indicated in the unctad (2011) report. a. core business b. global value chains c. non-equity modes of entry d. countervailing power of partners 2. there are about four major forms of non-equity modes (nem) of entry (contract manufacturing and service outsourcing, franchising, licensing and contract farming) by a multinational company into a host country. for each of these modes describe the factors (determinants) that encourage a multinational firm to choose one of these modes over the other to enter a host country. be specific. 3. each non-equity modes of entry by a mnc are different, at least, in the amount of local value added, and export earnings they generate in a host country? which of these modes of entry generate the highest local value added and why? which of these modes of entry generate the highest export earnings and why? 4. bivens(2005)’s paper argues that studies that highlight the positive impacts of offshoring on the u.s economy mostly ignore the costs associated with the following: a. a loss to the u.s economy through terms of trade effects. b. costs associated with income distribution consequences. explain each of these losses and how offshoring creates/generates these costs. 5. the three studies that bivens (2005) reviewed indicate that offshoring benefits the us economy through both employment creation and price reduction. bivens argues that the results from these three studies are not reliable at best and, in some cases, outright incorrect. explain how bivens arrived at this conclusion. which side (bivens’s conclusions or the results of the three studies) would you support? explain why 6. based on our readings of the two papers, given the irreversible phenomenon of offshoring, what should be done by stakeholders to maximize the benefits of offshoring for the majority of the people in both the host and the home countries? discuss briefly.

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In the UNCTAD 2011 report the term core business refers to the main line of business or activity that a company is engaged in This can include the production or distribution of goods or services resea... View the full answer