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1. Discuss the major trends that have prevailed in international business during the last two decades. (2-3 sentences)
2. Explain the arrangements and workings of the European Monetary System (EMS). (2-3 sentences)
3. Why would it be useful to examine a country’s balance-of-payments data? (2-3 sentences)
4. Explain how to compute the overall balance and discuss its significance. (2-3 sentences)
5. The public corporation is owned by multitude of shareholders but managed by professional managers. Managers can take self-interested actions at the expense of shareholders. Discuss the conditions under which the so-called agency problem arises. (2-3 sentences)
6. Many companies grant stocks or stock options to the managers. Discuss the benefits and possible costs of using this kind of incentive compensation scheme. (2-3 sentences)
7. Who are the market participants in the foreign exchange market? (2-3 sentences)
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