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Frequently Asked Questions (FAQ)

Below are answers to questions that students have asked in class or on the Ask Collin page.

Index

Last update: June 26, 2007

Q: What do you mean on the class homepage when you say "answer key to midterm?" (International Enterprise Management: Submitted June 26)

A: An answer key just means a document with the answers. The answers for all the midterms were posted on the class homepages; for example, the answer key to the International Enterprise Management midterm is here.

Q: We did not discuss Two-Stage Games of Imperfect Information (section 5.2 of the lecture notes) and Repeated Games (section 5.3). Will these be on the final exam? (Advanced Negotiation and Game Theory)

A: No. There is some additional information and examples in the game theory chapters of the lecture notes such as the sections mentioned above and including, for example, information on how to compute the Shapley value. If there is a section of the lecture notes we did not discuss in class, then it will not be on the final exam.

Q: What is the difference between a Master's degree and a Master's program? (The student did not specify which class he or she is in)

A: This question is answered on the Study Abroad page.

Q: How many students usually fail your exams? (International Enterprise Management)

A: That depends.

If your question is "Am I going to fail your exam?" then, as those who have taken tests from me can tell you, my exams are not easy and I generally don't ask the kind of questions for which you can, knowing nothing else, simply guess the answer. If you do not study, it is likely that you will fail. If you study, it is likely that you will pass. The choice is yours.

Q: Where can I find the answers for last week's quiz? (International Enterprise Management)

A: You can go to the International Enterprise Management homepage and scroll down to the section titled "Exams and Quizzes."

In the sentence reading "The answer key to quiz 1, which was administered on Wednesday, May 9, has been posted," click on the word posted.

Note that when I first posted the link, due to a typing error, the link did not point at the right file. The broken link was fixed over the weekend.

Q: How old are you? (International Business Management and Entrepreneurship)

A: As in life, the answers to some questions in this FAQ shall remain unanswered.

Q: Can you use a different theme for hte class web site? I think it will look better. (International Business Management and Entrepreneurship)

A: Thanks for your comment. The web site is, indeed, rather bare-bones, but this is intentional.

The web site is intentionally made with a simple user interface because I want it to be easy to navigate. I use the classic "inverted L" layout used by Amazon.com and many other major web sites because most people find it natural and easy to use.

If I were designing a web site for a rock-n-roll band or youth-oriented online magazine, I would make liberal use of Flash animation and flaming logos. However, in the case of this web site, I prefer substance over style and the design reflects this.

Q: Between FDI and outsourcing, which is better to go into a global market? (International Business Management and Entrepreneurship)

A: As with many questions in economics, it depends. There are advantages and disadvantages to both and which is used depends on the business situation that you are confronted with. The primary differences between the two are control and market penetration.

With outsourcing, you are relying on others to produce products or services for you. If you want to maintain some distance between you and your supplier, then outsourcing is probably the better alternative. You may want to maintain distance between yourself and your supplier if, for example,

• You want to take bids from several different suppliers and use competition to drive down the price.
• You anticipate a short-term relationship with the supplier.
• You have no intellectual property issues to worry over. For example, if production of the products being supplied do not rely on proprietary intellectual property that may be expropriated.
• Your firm is relying on the outsourced products or services in your home market, so you do not need a presence in the foreign market to do business.

With foreign direct investment (FDI), you acquire control in the supplier of a product or service. If control is an important issue, then FDI is probably the better alternative. You may want a controlling interest in your supplier if, for example,

• You anticipate a long-term relationship with the supplier.
• You have intellectual property issues to worry over. For example, if production of the products being supplied utilizes valuable intellectual property, you may need to ensure that you have more control over the use (or potential misuse) of that property.
• You are interested in doing business in a foreign market and want to acquire an equity stake in an established company that already knows how to do business or that is already established in the foreign market.

Q: When is the midterm exam? (Advanced Negotiation and Game Theory)

A: As per the syllabus, there will be no midterm in the advanced negotiation and game theory class. Midterm dates for other classes are announced both in class and on the class homepages.

Q: What is the difference between "e-business" and "e-commerce?" (International Business and Entrepreneurship)

A: E-commerce refers to the buying and selling of things over the internet. E-business refers to a business whose primary sales channel is the internet.

However, in practice, both terms are used interchangeably. E-commerce is much more commonly used than e-business, so if you are unsure which word to use, use e-commerce.

Q: What is meant by "financial packages" in the article "Doubts inside the barricades?" (Contemporary Issues in Business and Economics)

A: In the article "Doubts inside the barricades," the author writes, "Since then, however, the IMF has actually given huge financial packages to Brazil and Turkey even as Paul O'Neill, America's treasury secretary, has decried bail-outs." (p. 3)

The word "package" is used to refer to the fact that several types of financial assistance, such as loans (which have to be paid back), grants (which do not have to be paid back), and advisory services, are bundled together to form a package that is given to a country to help them through a difficult time.

The term "bail-outs" is commonly used when financial aid is given to a country to save it from economic disaster. When a boat has a hole in it and water is coming in, the act of taking a bucket and pouring the water that is coming into the boat back outside the boat is called "bailing." When a ship is sinking, you "bail out" the water to keep it from sinking.

Q: What does "high context" mean? (Business Negotiation)

A: Context is information that surrounds a communication and helps convey the message. Often there is more information in something someone says than in the words themselves. The same words said with a smile can mean something different than when they are said with a frown.

High-context societies, such as Japan, the U.K., and many Arab countries, use a communication that is often highly coded and implicit. For example, if someone says to a woman who is wearing a red dress, "Red is such a difficult color," what is really meant is, "That dress does not look good on you."

In low-context societies, such as the United States and Canada, communication is explicit and a speaker says precisely what he or she means.

Q: The link to the quiz 2 answers is broken. Can you fix it? (International Business Management)

A: The link appears to be in place and the file is on the server. However, sometimes when I try to load it, it works, and other times it does not. I am not certain what the problem is, so I will copy the text of the sample response into the FAQ below.

Q: One of the characteristics of organization culture is organization climate. Does that refer to world climate, the MNC's climate or the regional climate? Which climate is most important of all? (International Business Management)

A: In the lecture, we referred to the organizational climate as one of the important characteristics associated with an organization's culture.

This refers to the climate within the MNC; i.e., the general feeling about the MNC by the employees. Things that contribute to the general feeling about the MNC include how people treat each other within the MNC, how management treats their employees, how employees interact with customers, etc..

Q: Will the section on social comparison from chapter 3 of The Mind and Heart of the Negotiator, titled "Distributive Negotiation: Slicing the Pie", be included on the final exam? We did not discuss it in class. (Business Negotiation)

Q: Do we have to read all the articles you provided us during the semester for the final? Some of them were not discussed in class. (International Business Management)

A: No. Although you should read all the articles for your personal benefit, the final exam will focus on the articles that we discussed in class.

Q: Will the section on social comparison from chapter 3 of The Mind and Heart of the Negotiator, titled "Distributive Negotiation: Slicing the Pie", be included on the final exam? We did not discuss it in class. (Business Negotiation)

A: No. Although you should read the full chapter for your personal benefit, the final exam will focus on the material that we discussed in class.

Q: Will the final handout provided in Business Negotiation (chapter 4 of The Mind and Heart of the Negotiator, titled "Win-win Negotiation: Expanding the Pie") be included on the final exam? (Business Negotiation)

A: No. We did not have time to discuss it this semester, but will return to it next semester in the advanced negotiation class.

Q: Can you explain more about the terms ex officio and good offices?

A: Ex officio means that someone has some right or privilege because of the position that they have. For example, the president of a company may have the right to sit in on all meetings of the Board of Directors because he is the president. The president of the United States is ex officio the Commander-in-Chief of the armed forces. That means that the person who is elected President in the U.S. is automatically designated as the highest-ranking person in the military and anyone in the U.S. military must follow his or her orders.

Good offices refers to beneficial acts performed for another, such as beneficial acts performed by a mediator in a dispute. The DSU (Dispute Settlement Understanding - Annex 2 of the WTO Agreement) has rules concerning good offices. You will not need to know this term for the final exam.

Q: In the definition of Profit-sharing Plan (also known as Deferred Profit-sharing Plans, or DPSPs) in the glossary, it says that when and how you can withdraw these funds without penalties is restricted. Does it means that though you can share profit in your company, or is it something like a stock option in which you have to first put some funds in your company?

A: A DPSP, or Deferred Profit-Sharing Plans, is a type of pension (retirement savings) plan. What follows is more detail than you really need to know, but since you asked ... employers who have a DPSP take a share of their profit at the end of every year and give it to employees. They divide it up based on employees' salary and other factors.

The money (and any interest you earn on it) is tax-free until it is withdrawn. That means that it does not count on your annual income taxes until you take the money out of the DPSP account. If you take it out of the account before you are retirement age (65 in the U.S.) you may have to pay a penalty. Many companies also have vesting restrictions, which means that if you leave the company before you have been working for them for a certain number of years (usually somewhere between 5 and 10 years), you lose all or part of the money that is in your DPSP account.

About 1/4 of U.S. companies have some kind of profit-sharing plan.

Q: Can you elaborate a bit more about the terms LATNA and FTS?

A: The term LATNA stands for Least (Desirable) Alternative to a Negotiated Agreement. It is not an official negotiation term, but is meant to humorously describe how, in a dispute, BATNAs are often linked. When considering your BATNA in a dispute, due to linked BATNAs, you should think about the worst thing the other party can do to you if you do not reach an agreement. See the answer to this question for more information about linked BATNAs.

FTS stands for Face Threat Sensitivity. This refers to how easy it is to cause someone a loss of face. If you give someone a mild criticism, such as "I don't think that shirt is a good color for you," and they feel they have lost face, they have a high FTS. If it takes a much stronger criticism, such as "I think you are unethical and a liar," to cause someone to feel that they have lost face, they have a low FTS. On average, due to cultural differences, Chinese have a higher FTS than Americans.

Q: Which sections of the cross-cultural business tips from Kiss, Bow, and Shake Hands will we need to know for the final? How much should we study it?

A: Review the sections titled BUSINESS PRACTICES and PROTOCOL. You need to generally familiarize yourself with it, but do not spend too much time with it. Any questions on the final exam will be general questions.

Q: Where is the link where we will need a username/password?

A: I announced in class that some parts of the class web pages may require a username/password combination. I have not password-protected any part of the web site yet. But when I do, you will know it when you see it.

Q: What is a "save format" in a web page?

A: I don't know exactly ... I would have to take a look at what you are referring to. Format would refer to the look and feel of a web page. Is there a specific web page you are asking about?

Q: Could you explain why the percent increase in Y is less than the percent increase in K in the Rybczynski theorem? (International Economics)

A: This question requires some detail to explain, so you'll have to have some patience as we go through the answer to this question.

As a reminder, the Rybczynski Theorem states that "if relative commodity prices are constant and if both commodities continue to be produced, an increase in the supply of a factor will lead to an increase in the output of a commodity using that factor intensively and a decrease in the output of the other commodity."

The result is a mathematical result that follows from the assumptions of constant returns to scale, diminishing marginal returns, etc.. In class, it was stated without proof, but it can be proven mathematically. However, we can see why it is true by drawing a picture.

Consider the increase in the supply of a factor in a box diagram. (See below.) In the diagram, the labor endowment L is increased. Since the commodity prices w and r are constant (one of the conditions of the theorem) and there are constant returns to scale, the capital-labor ratio used by the producers does not change from their original ratios of k_x and k_y.

The Rybczynski Theorem

As you can see from the diagram, the line O_yA is longer than the line O_yA^'. Thus, the output of Y actually decreases.

Economically, this happens because when more labor is available at the old prices, there is an excess supply of labor in the economy. Since capital must be used with labor to produce both X and Y, this also results in an excess demand for capital.

Since the labor-intensive industry X can produce output with the additional labor more profitably than the capital-intensive industry Y, it increases output. However, in doing so, it must take some capital from the capital-intensive industry. This result in a decrease in the output of Y.

Now consider, for example, a 10% increase in K and a 15% increase in L. You could decompose the change into two separate changes: (1) A 10% increase in both K and L, then (2) a further 5% increase in L.

As a result of the first change, output of both X and Y increase by 10% due to constant returns to scale.

As a result of the second change, according to the Rybczynski Theorem, output of X increases by more than an additional 5%, while output of Y actually decreases. So the total change in Y is less than 10%, the total change in K is exactly 10%, the total change in L is exactly 15%, and the total change in X is more than 15%.

Q: Should we be responsible for the class contents before midterms for the final? If we should, what its approximate proportion in the final?

A: Yes. The final exams are cumulative; however, in your study, you should emphasize the information we covered after the midterm. Include the midterm itself as a source of information to review for the final. I will refrain from citing a proportion, but will recommend that you spend the majority of your study effort on the information from the second half of the course.

Q: Can you explain unit value isoquants in more detail? (International Economics)

A: Students are first referred to the Factor Price Equalization Theorem section of the chapter titled The Heckscher-Ohlin Model in the lecture notes. Specifically, sidenote 10.6.3.

An example of unit value isoquants is given below. The factor price equalization theorem states that free trade in commodities will equalize factor prices as long as both countries continue to produce both goods. The primary point to be made with the unit value isoquant graph is that if a country's endowment of capital and labor is weighted too heavily towards either capital or labor, the country does not produce both goods.

Unit Value Isoquants, Unit Isocost Lines, and the Factor Price Equalization Theorem

The unit value isoquants for X and Y are tangent to the unit isocost line (from 1/r_a to 1/w_a) at the capital-labor ratios k_y and k_x. The set of points within the rays given by k_y and k_x is called the zone of diversification, and if a country's endowment of capital and labor is within the cone of diversification, the country continues to produces both goods.

To see why, note that in order for both goods to be produced, the unit value isoquants must be tangent to the unit isocost line, and production for X and Y occurs with the capital-labor ratio at the point of tangency. If one of them was not tangent, it must either cross the unit isocost line or not touch the unit isocost line at all.

• If one of the unit value isoquants crosses the unit isocost line, then the producer of that good could produce more than $1 worth of good for exactly $1 worth of inputs. Thus, the producer of that good would be making positive profit whereas the producer of the other good would be making zero profit. This is not an equilibrium because one producer has incentive to raise the price of inputs to take capital and labor away from the other producer.
• If one of the unit value isoquants does not touch the unit isocost line at all, $1 worth of inputs produce less than $1 worth of outputs of that good. Thus negative profits are being earned and that good would not be produced.
• Try drawing these two scenarios to convince yourself that it is true.

If a country's endowment of capital and labor were, for example, k_f, then the capital and labor could be divided between production of X (using the capital-labor ratio of k_x) and Y (using the capital-labor ratio of k_y).

However, if a country's endowment of capital and labor were, for example, k^'_f, there is no way to divide the capital and labor using the ratio k_x and k_y without having extra labor left over. With an excess supply of labor, the price of labor would fall and the unit isocost line (1/r_a to 1/w_a) would adjust to a point at which it is tangent to one unit value isoquant, but not the other.

Q: What is a trade-off agreement? (Business Negotiation)

A: A trade-off agreement is a kind of integrative agreement. An integrative agreement is just another word for a win-win agreement.

An integrative agreement is one in which negotiators get concessions on their high-priority issues in return for giving concessions on their low-priority issues.

There were several types of agreements that Jeanne M. Brett, author of Negotiating Globally and negotiation professor at Kellogg School of Business, described:

• Trade-off agreement- Agreement in which parties make concessions on low priority issues in order to gain more on high-priority issues.
• Narrowly focused agreement- Agreement that focuses on the particular circumstances of the dispute, as opposed to the general principle underlying the dispute.
• Limited-duration agreement- Agreement to try something for a limited time and then evaluate before continuing.
• Contingent agreement- Agreement that depends on another event, usually in the future.
• Broadly focused agreement- Agreement that focuses on the interests underlying the dispute.
• Future-based agreement- Agreement that deals with the future before dealing with the past.

Q: Merry Christmas! I want to ask some questions: Where are the International Economic Organizations midterm answers? And where are the quiz answers of the International Business Management course? (International Economic Organizations)

A: Happy holidays to you too! The midterm answers to International Economic Organizations are on the class homepage.

The quiz answers of the International Business Management course have also been posted online.

I should like to mention that I post answers to tests and quizzes online as a courtesy and convenience for students. If answers to any given quiz or test are not posted online, they will be discussed in class.

Q: Is there any difference between IBRD and IDA in whom they give a loan to (i.e., public or private sector)? (International Economic Organizations)

A: No. The primary difference lies in the per-capita income and credit-worthiness of countries they lend to.

Q: What is the difference between equity and equality? (Business Negotiation)

A: The terms have been added to the glossary. Look up "equity," "equality," "equity rule," "equality rule," and "needs-based rule."

Q: Would you explain a little more about integrative agreements? What do you mean when you say BATNAs are linked in dispute situations? (Business Negotiation)

A: An "integrative agreement" is the same thing as a "win-win agreement." They are two different terms used for the same thing. In an integrative agreement, all potential options have been discovered and creatively exploited. It is about creating value. This is what is meant by "expanding the pie."

As opposed to an integrative agreement, a "distributive" agreement is about claiming value, and is what results from "slicing the pie."

With regards to linked BATNAs, in a typical buyer-seller negotiation, if no agreement, a negotiator receives their BATNA. For example, when negotiating for a sweater, if no agreement can be reached, the buyer can simply walk away and is no worse off than before the negotiation began. By walking away, they receive their BATNA; for example, they may not buy a sweater or they may have to buy a less preferred style.

With a dispute, the situation does not simply return to normal if no agreement is reached. Often each party in a dispute can take actions to harm the other. For example, if a coworker wants you to change a policy and you refuse, they may then become an enemy in the workplace and attempt to have you fired. Their BATNA is to resolve the dispute by having you fired and your BATNA is linked to theirs. Each of your alternatives to a negotiated agreement depend on the response of your opponent, even if no agreement is reached. In a dispute, it is often helpful to think about the worst thing the other party can do to you when contemplating your BATNA.

Q: When I click on the link to the answers to quiz 2 in the international economic organizations class, I am taken to your homepage. How do I get the answers? (International Economic Organizations)

A: The link has been fixed. Thank you for making me aware of the issue and apologies for any confusion.

Q: There have been several questions regarding whether autarky is the same as self-sufficiency. (International Economics)

A: It depends on how it is being used. In models of international trade, autarky is defined as "the absence of cross-border trade." Since our class concerns international trade, and I use the word in the context of the models of international trade that we discuss, this is the definition that I use in class.

Self-sufficiency is defined as "able to provide for your own needs without help from others." It is important to note that a country can have no cross-border trade, yet not be self-sufficient. An example would be North Korea, which could be considered to effectively be in autarky for political (rather than economic) reasons, yet has historically not been self-sufficient. In August 1998, the U.S. Congress estimated that nearly 2 million North Koreans (nearly 10% of the population) may have died of starvation in the three prior years. Clearly, though North Korea was not trading with the outside world, it was not self-sufficient.

However, autarky has been used by economists and others as a synonym for self-sufficiency. In the Dictionary of Economics by Jae K. Shim and Joel G. Siegel, autarky is defined as "[a]n economic policy of self-sufficiency rather than relying on foreign imports and exports." (p. 20) This use of the word derives from its origins in Greek.

From Wikipedia,

The word "autarky" is from the Greek ata'rkeia, which means "self-sufficiency"
(derived from ato, "self," and arke'w, "to suffice"). In American English it is
sometimes confused with autarchy (Greek: atarxi'a), which either means
self-government or government by absolute rule. ("Autarchy" is the British
English equivalent of the American word "Autarky"). 

...

Today, complete economic autarkies (or autarchies) are rare. An example of a
current autarky is North Korea, based on the government ideology of Juche
(self-reliance). However, even North Korea has a small amount of trade with the
People's Republic of China and Japan. Bhutan, seeking to preserve an economic
and cultural system centered around the dzong, has until recently maintained an
effective economic embargo against the outside world, and has been described as
an autarky. With the introduction of roads and electricity, however, the
kingdom is being forced into trade relations as its citizens seek modern
manufactured goods.

Historical autarkies

* The United States, while still emerging from the American Revolution and
  reeling from persecution by Great Britain, came close to complete autarky in
  1808 when President Jefferson declared a self-imposed embargo on
  international shipping. The embargo lasted from December 1807 to March 1809. 
* Japan was partially an autarky during the era known as the "Edo period",
  prior to its opening to the west in the 1850s, as part of its policy of
  sakoku.  There was a moderate amount of trade with China and Korea; trade
  with all other countries was confined to a single port on the island of
  Dejima.
* India had a policy of near-autarky that began after its establishment as an
  independent state, around 1950, and ended in 1991. 
* China as well was close to an autarky from around 1950 to 1978, as a result
  of policies established by Mao Zedong. 
* Albania became a near-autarky in 1976, when Communist Party leader Enver
  Hoxha instituted a policy of what he termed "self-reliance".  Outside
  trade increased after Hoxha's death in 1985, though it remained severely
  restricted until 1991. 

Others may use it to mean "an economic policy of self-sufficiency," and as long as they are not talking about international trade models, they would not necessarily be incorrect in that usage.

Q: If the autarky price is farther away from the world price, does the country gain more from trade? (International Economics)

A: Yes. Perhaps the best way to illustrate it is with a graph. Although this is by no means rigorous, it gets the right idea across.

In the graph on the left, consumers respond to a world price in which the price of X is relatively higher than in autarky by exporting X and importing Y.

Suppose the world price differs even more from the autarky price. This is illustrated in the graph on the right. As can be seen by comparing the graph on the left with the graph on the right, with an even higher relative world price for X, consumers respond by exporting more X, importing more Y, and end up on an even higher indifference curve.

Gains from Trade Example 1	Gains from Trade Example 2

Q: I read about two terms, "absolute wages" and "relative wages." Are absolute wages the wages (in terms of dollars or yuan) that a worker gets from the producer and relative wages purchasing power measured in terms of goods? (International Economics)

A: Absolute wages, as you say, are wages in monetary (e.g., dollars or yuan) terms.

"Relative wages" can be used to describe wages relative to something else. In international trade, the term "relative wage" is often used to talk about wages in one country relative to wages in another. When speaking about workers with different educational levels, "relative wage" may refer to wage levels of (for example) those with a college degree relative to those without a college degree.

There are two other terms regarding wages that are worth knowing: "Real wages" and "nominal wages."

The term "real wages" is used to denote wages in terms of purchasing power of goods and the term "nominal wage" (like "absolute wage") is the wage in monetary (dollars or yuan) terms. That is, real wages are nominal wages adjusted for inflation. A price index is used to adjust for inflation (for example, in the U.S. the CPI, or Consumer Price Index, is a commonly used price index) and real wage = nominal wage / price index.

Q: Can you explain the term "rule of thumb" used in negotiation class? (Business Negotiation)

A: A rule of thumb is an easily learned and easily applied procedure for approximately calculating or recalling some value, or for making some determination. It is a rule that is not intended to be entirely accurate for every situation, but is used because it is simple and easy to apply, particularly when there is significant uncertainty.

For example, when I was a software engineer, I would use a "rule of thumb" to estimate the amount of time it would take to complete a project. Since software engineering projects are very complex and there are often things that one cannot account for when planning, I would estimate the amount of time I thought it would take to complete a project, then double it. The doubled estimate would be the amount of time I would tell management that the project would take, and it was usually fairly accurate.

When civil engineers build bridges, they try to estimate how strong the bridge must be so that it does not collapse. Then, based on a rule of thumb, they may design the bridge to be twice as strong to make extra sure the bridge does not collapse.

Tailors (people who make clothes) also have a common rule of thumb that they use for measuring the people they are making clothes for. The rule states, typically, that twice the circumference of a person's thumb is the circumference of their wrist, twice the circumference of the wrist is the circumference of the neck, and twice around the neck is the person's waist.

Q: Will you announce the dates you are going to give quizzes ahead of time?

A: No.

Q: I find that the examples in the selections from the Business Negotiation textbook are difficult to follow. Should we be responsible for them? (Business Negotiation)

A: When referring to the materials from the textbook that have been made available, focus on the topics and material that we have discussed in class.

Q: What sources should we use to study for the midterm in addition to our class notes? (Business Negotiation)

A: Please review the selections from the textbook that have been made available. Please also review the negotiation exercises we have gone through in class as well as the comments that were returned from the last negotiation exercise.

Q: I want to know the purpose and the program of World Bank. Also I want to know some criticism of the bank programs. (International Economics)

A: The World Bank and IMF will be discussed in detail later in the semester in the International Economic Organizations class. I suggest you consult a student in that class later in the semester for more detail.

The purpose of the World Bank is given in the World Bank Mission Statement, which reads (in part)

• To fight poverty with passion and professionalism for lasting results
• To help people help themselves and their environment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors

Criticisms include complaints that (in general) globalization has widened the gap between the haves and have nots, benefitted rich countries at the expense of poor countries, and that (in particular) the economic stabilization policies of the World Bank and IMF have been overly burdensome to those seeking financing. At least those are the main ones I can think of off the top of my head.

Q: What is meant by the term "race to the bottom?" (This question was asked on Sunday, 10/22 at 3:07pm by an International Economic Organizations Student)

A: This question was asked in the first quiz in International Economic Organizations. This was mentioned both in International Economic Organizations when we discussed the need for international law and International Business Management when we discussed drawbacks of globalization.

Please see question 9 in the document posted with the quiz answers.

For more information, you can also see Wikipedia. Please note that Wikipedia, although it is an excellent general online reference, should not be considered a definitive reference and that the entry for "race to the bottom" has had its neutrality disputed.

Q: Do we have to read all the articles you give us word-for-word and fully understand the meaning of every word? (International Business Management Student)

A: No. You do not need to know the meaning of every word and every fact presented in the article. However, you should know (1) what the article is generally about, (2) the major players (i.e., the primary countries, companies or individuals mentioned in the article), (3) what the primary points that the author makes, and (4) any important opinions that the author has.

I recommend you write down a brief outline of the article (including the four points mentioned above) while you read through it.

Q: If there are contents in the class notes which we did not discuss in class, are we responsible for them? (International Business Management Student)

A: Yes. However, the things I discussed in class I consider to be most important, so I recommend that you study those first and spend the most time on them.

Please see also the question about Annex 1C: TRIPS and related topics below if you are in my International Economic Organizations class.

Q: What does the word "Hodgetts" mean in the class notes? And where are the tables you say? (International Business Management Student)

A: Hodgetts is the author of the textbook used in class.

The tables (and figures and sidebars) I refer to in the class notes, such as "Hodgetts Table 1-5," are tables (and figures and sidebars) presented in the textbook. Sometimes I simply discuss the contents of the table in class, while sometimes I pass out a copy. For example, Hodgetts table 1-5 was the table detailing "The 3 Eras of the Soviet Union" passed out on September 5.

If there are any references to tables, figures, or sidebars that we did not discuss in class or which were not passed out to the class, obviously, you are not responsible for their contents.

Q: Will the "Annex 1C: TRIPS" and "Annex 2: DSU" sections in the lecture notes be on the midterm? (International Economic Organizations Student)

A: No. I have not yet discussed the sections "Annex 1C: TRIPS", "Annex 2: DSU", "Annex 3: Trade Policy Review Mechanism," or "Annex 4: Plurilateral Agreements." These sections were recently removed from the lecture notes to avoid any possible confusion.

Q: Will we have to write down the definitions or just choose from, say, A / B / C / D in the upcoming midterms? (International Economic Organizations Student)

A: Most of the questions will be multiple choice. However, you will have to write some things, such as definitions. If you are asked to write a definition, it does not need to be verbatim (that is, precisely word-for-word) -- I am primarily interested in whether you have the idea correct.

Q: Can tell us in detail what kinds of questions will you give us? Fill-in-the-blank? Essay question? (Business Negotiation Student)

A: Most of the questions will be multiple choice. I may ask some definitions and questions that require a written answer. For questions where I ask for a written answer, you will not be expected to write a novel. I will be primarily interested in whether you understand the concept behind a particular topic.

Q: Can you put more detail in your online class notes?

A: I will try to include as much detail as possible. The class notes take me quite a bit of time to type, so there is a limited amount of information I can include.

If there is something you are unclear on and you think could use more detail, it would be helpful if you request more detail either in class, in an e-mail, or anonymously through the Ask Collin page.

Q: The class is moving too quickly. Can you slow down?

A: Due to the fact that I am teaching in English, there is a balance between spending more time focusing on the English and teaching the subject material. I will continue to teach at the current speed, but if there is something you are having difficulty understanding, I encourage you to ask questions in class or after class. I am happy to schedule office hours if you could use some assistance understanding a particular topic.

Q: You erase the board too quickly.

A: This is a common problem with instructors. I will try to be conscious of this, but if you could use some more time to write something down, please feel free to speak up in class.

Q: This question is in the form of a suggestion. Following the first quiz in International Business Management, a student suggested that a more concept-based testing approach, rather than a detail-based approach, provides a better learning experience.

A: Thanks for your suggestion. I agree in principle and found your suggestion insightful. In practice, due to the format of the multiple-choice questions, it is challenging to make multiple-choice quizzes and tests (as opposed to, for example, essay tests) as concept-oriented as one would like.

For a variety of reasons, it is more practical for many teachers (including myself) to administer multiple-choice tests when adjusting to teaching in a different cultural environment and educational system. So I will probably continue to make a significant portion of quizzes and tests multiple-choice questions.

In general, you can expect tests to be more concept-oriented and quizzes to be more detail-oriented though quizzes will have some conceptual questions and tests will have some detail-oriented questions. After our return from the holiday, we will discuss testing and study practices in more detail in class.

Q: Will you write larger on the chalkboard?

A: Thanks for letting me know that my writing is too small. I will try to write larger and more clearly. Please let me know if my writing continues to be too small.

Q: How do I submit a question for the FAQ?

A: You can submit a question on the Ask Collin page.