Applying the well-known GARCH/ARCH (Engle, 1982, 2001) model, we find that real output in Costa Rica is positively affected by real M2 money, the expected inflation rate, and the U.S. output and negatively influenced by the depreciation of the colon. Consistent with the Barro-Ricardo (1989) hypothesis, deficit spending does not affect real output. Therefore, the Costa Rican government may need to pursue a balanced budget and maintain the stability of the colon because the costs of currency depreciation outweigh the benefits.
Today, the development of a global vision is the cornerstone that guarantees personal, economic and social development, improves competitiveness, and strengthens democracy. Future business professionals will need to understand international business patterns and cultures in order to successfully work in corporations in either the United States or abroad. One way to achieve these goals is through the use of study abroad programs. Study abroad programs develop cross-cultural awareness as well as the interpersonal and professional skills necessary to operate in a changing business environment.A common perception of North Americans is that they are in general ethnocentric and resist efforts to internationalize. While this may or may not be true for all those who reside in the United States, it is undeniable that future college graduates require a better education in international business and cross-cultural differences. The Association to Advance Collegiate Schools of Business International (AACSB) has risen to this challenge by requiring participating schools to include a global perspective in their business education programs. In accordance with AACSB accreditation, colleges and universities must incorporate into their mission a focus on "strong and growing global economic forces" (AACSB Standards for Business Accreditation, 1991). For business schools, this entails covering topics that convey to students the United States' role in the global environment and understanding economic and cultural dynamics that play a role in transactions between businesses in other countries. Teaching the intricacies of international business law and the difficulties associated with marketing to individuals of a different language cause can lead to a diminished learning environment in traditional classroom settings. In response to AACSB's charge to improve education on international issues, some schools have stepped out of the classroom and literally moved courses into the global marketplace (Pretzels & Curico, 1996). This paper discusses the rationale for experiential education programs, the benefits of these initiatives to students, and current trends in international study abroad programs.
