...IBUS 410- Midterm Review Globalization * Definition: interdependent, integrate * Production- factors of production- land labor capital * Endowment theory * Lower overall cost * Markets- merging markets * Economies of scale * Institutions * Drivers- decline in barriers, tech changes * Implications: * Lower barriers: optimal location * Tech changes: lower costs * 4 trends in changing demographics * MNE- types of companies involved * Democratic politics, free market economies The World Is: * Prusak- distinguish information from knowledge (difference) * IMPORTANT- the issue of access to info- but no knowledge * Ghemawat- 10% presumption, factors of time zones, languages, proximity shows that distance does matter, the world isn’t flat Opportunities & Challenges of globalization for managers * Differences of managing international vs. domestic * Boeing: benefits of globalization maximize efficiency of production but actually caused problems; lack of planning, communication, not simple for this industry (knowledge intensive industry) better for in house Localization * Standardization is ending, consumers are diverse- customization for local * Data analysis & innovation * Centralized vs localized * SWOT analysis National Differences * Political economy- system of gov. Political, economic & legal influence each other. Collective vs individualism ...
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...conservative estimates of future earnings. And this phenomenon of accounting scandal exist in contemporary society. The integrity of the accounting profession and the credibility of financial information provided by businesses have been undermined by scandals. Accounting and business education should pay more attention to the ethical to prevent accounting scandals. And they should not be focused on the teaching of accounting techniques. Neoliberal ideology is a political movement beginning in the 1960s that blends traditional liberal concerns for social justice with an emphasis on economic growth. And it is similar to globalization. Globalization includes three elements that are difficult decreasing, quick response to alterations, and multilateral trade liberalization. And accounting professional contains individual professional judgment and professional self-regulation. Globalisation brings many benefits but also a number of problems, for instance, low price labour used by multinationals that Increasing wages for highly-skilled workers and reducing wages for less-skilled workers obviously leads to greater inequality. Neoliberalism has also been unable to address growing levels of global inequality. In order to better focus on ethical education, accountants should consider ethical issues in various directions. And they should understand the requirements of students’ future employer, and how to guide students into a true ethical notion. Introduction With the development of society in...
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...understanding of how the future may impact these goals. * Know how government regulation affects the economy. * Show the relationship of supply and demand as illustrated on supply and demand curves. * Define elements of productivity and how it can be increased. * Define “quality of life”. * Know the similarities and differences between for profit and not-for-profit organizations. * Know the role of the US Federal Reserve and what tools they use to implement their policies. * Know what a free market economy is and its relationship to the distribution of wealth. * Define a socialist economic system. * Know how profit is determined for a business. * Know who the stakeholders are of a business. * Know what constitutes US fiscal policy and how is it used to manage the economy. * Define gross domestic product (GDP). * Know and explain the “rights of capitalism”. TCO 2: Given the importance of ethics in business, be able to understand and address ethical dilemmas that may occur in...
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...Environment Factors of production: Resources used to produce goods and services 1) Land (natural resources) 2) Labor (workers) 3) Capital (buildings, equipment) 4) Entrepreneurship 5) Knowledge/Information World Economic Systems 1) Communism: All factors owned by all people * Big government * No competition * Karl Marx 2) Socialism: Some factors owned by all people * More equal allocation of resources * Government/central planning for basic goods/services * Most basic industries owned by the government 3) Capitalism: Factors are privately held and used to make profit * Promotes competition and freedom. * Driven by self-interest, rewards innovation * Adam Smith: father of free trade and capitalism Market Economy A) Supply and Demand B) Levels of Competition * Pure: Indistinguishable products, infinite sellers, i.e. Retail gas * Monopolistic: Similar products, many sellers, i.e. Candy, Athletic Shoes, Apparel * Oligopolies: Market is dominated by a few sellers, i.e. Soft drinks, Airplanes * Monopolies: One firm owns majority of market, i.e. Electricity, Gas, Water Economic Indicators (indicate health and trend of an economy) 1) GDP: Measures the sum of all goods and services produced in a country in a year 2) Unemployment rate: Measures percentage of population 16 and over looking for work but cannot find it. Three types of unemployment * Frictional: in between jobs, best type...
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...Globalization isn’t a new discover worldwide it has been going on for many years between many different counties. Yet, the United States is pretty new to the concepts and rules of free trade. Just like many new ideas and regulations that affect our everyday lives people across the world have a different view or understanding of the term globalization. Depending on others owe ethics, morals and ways of life create their own personal agreement or disagreement with global trade. Globalization has basically made the world a smaller place and also made ways for free trade and business to effectively communication between various parts of the globe. It has potential to make this world a better place to live in. It is changing major problems like unemployment and extreme poverty. Developing countries benefit the most and a lot from globalization as there is a sound flow of money and a decrease in the currency difference between every country with in the world. Free trade creates a mass competition base between many companies worldwide producing the same products, which give everyone worldwide many different options on what they would like to spend their own hard earned dollar on. With all those great positives for globalizing there are also many negatives about it. Globalization is causing citizens in many parts of the world to lose their jobs as work is being outsourced to other countries. The cost of labor in many other countries is extremely low as compared to a different country...
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...Businesses only act in an ethical way because it looks good rather than because it is the right thing to do. To what extent do you agree with this statement? (40 Marks) Businesses are differentiated in several ways but one way that really separates businesses are the ethics of the company. Ethics are the standards of right and wrong behaviour from the company, this is difficult for a business as they all have different ethics and to what extent how ethical they are and should be, if they even want to be ethical? I will now look at businesses that have different ethics and how this has affected their running of the business, also evaluating why they chose to be so ethical. One company that do not publicise their ethical culture is Ben and Jerry’s, the ice cream giant with their elaborate and quirky flavours which they have become iconic for started a revolution by becoming the first ever company to become ‘fair trade’ with Vanilla Ice Cream in 2006 and have declared all European products by 2011 will be and by the end of 2013 the rest of the worlds production. This basically meant everyone involved in the process of creating the ice cream including the labour such as farmers who extracted the raw materials to produce their goods such as cocoa beans were paid at a good rate which would’ve increased their costs but not significantly. The reason costs didn’t rise significantly was mainly due to the company expanding allowing them to exploit economies of scale by bulk-buying their...
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...Glen v. Club Mediterranee, S. A. Facts * Elvira de la Vega Glen and her sister, Ana Maria de la Vega Glen, were Cuban citizens and residents who jointly owned a beachfront property on the Peninsula de Hicacos in Vandero, Cuba. * In 1959, The Cuban government expropriated the property without paying the Glens and they fled Cuba. * Anna died and the Vandero beach property was passed to her nephew, Robert M. Glen. * Approximately, forty years after the property was taken by Cuba, Club Mediterranee, S.S., and Club Med entered into a joint venture with the Cuban government to develop the Glen Property. * The Glens sued Club Med in a U.S. District Court located in the state of Florida where the original Glens’ had fled. * The U.S. District Court held that the act of state doctrine barred recovery by the Glens and dismissed the Glens’, claims against Club Med. * The U.S. Court of Appeals applied the act of state doctrine and affirmed the judgment of the U.S. District Court that dismissed the Glens’ claim against Club Med. 1. The act of state doctrine prevents any court in the United States from declaring that an official act of a foreign sovereign performed within its own territory is invalid. That means that states that an act of a government in its own country is not subject to suit in a foreign country’s court. 2. The Cuban government did not act ethically when they expropriated the Glens’ property. Club Med did not act ethically when they...
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...Business Ethics: What happens when business operates without ethics In Ethics, The Heart of Leadership, Al Gini argues that ethics are an integral part of business. He employs multiple arguments to back up his claim. One such argument is that “work is how we spend our lives, and the lessons we learn there, good or bad, play a part in the development of our moral perspective and the manner in which we formulate and adjudicate ethical choices” (p. 30). In other word, as long as one values ethics in one’s personal life, they should behave ethically in both personal and professional pursuits. It is hard, if not impossible, to completely separate these two worlds. Another argument is that while economics provides a basis for action based solely on self-interest, ethics are important for operating in an environment filled with interconnected entities such as business, government, and people. After all, “no business can view itself as an isolated entity, unaffected by the demands of individuals and society” (p. 33). Gini recognizes that there is a widespread sentiment that business and ethics are mutually exclusive. It seems that “…the realm of business operates under the dictum of legal moralism: Everything is allowed that is not strictly forbidden” (p. 33). Not only does Gini disagree with that sentiment, he believes the ethics of leaders to be critical for the whole corporation. While each individual has their own opinions and their own free will, Gini describes a trickledown...
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...contrast microeconomics and macroeconomics. How do the 2 approaches interrelate? Use a specific example to explain. Macroeconomics and Microeconomics are both dealing with economics but indifferent levels, Macroeconomics is the study of a country's overall economic issues and Microeconomics deals with economics on an individual consumer,families and individual businesses. They can affect how much you can purchase for your family and what is available for you to purchase for your family. 3. What are the fundamental elements of the free market economic system? How can businesses thrive within this system? 1. The rights to own a business and keep after-tax profits 2. The right to private property 3. The right to free choice 4. The right to fair competition Free Market economies allows businesses to thrive by allowing owners to keep the profits, encouraging growth. 4. Describe the 4 degrees of competition within the free market system. Offer 2 to 3 examples of each type of competition by filling in the chart. Pure Competition: A market structure in which a very large number of firms sell a standardized product into which the is very easy in which the...
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...Chapter 01 Globalization Answer Key True / False Questions 1. As a result of globalization, we have been moving toward a world in which national economies are (p. 7) relatively self-contained entities. FALSE Over the past three decades a fundamental shift has been occurring in the world economy. We have been moving away from a world in which national economies were relatively self-contained entities. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Understand what is meant by the term globalization. Topic: Introduction 2. By offering the same basic product worldwide, firms help to create a global market. TRUE Consumer products such as Citigroup credit cards, Coca-Cola soft drinks, video games, McDonald’s hamburgers, Starbucks coffee, and IKEA furniture are frequently held up as prototypical examples of this trend. The firms that produce these products are more than just benefactors of this trend; they are also facilitators of it. By offering the same basic product worldwide, they help to create a global market. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Understand what is meant by the term globalization. Topic: What Is Globalization? 3. A company has to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets. FALSE A company does not have to be the size of multinational giants to facilitate, and benefit from, the ...
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...trading, it is somewhat unfair to mark this country as the reason for the United States economical situation. Some authors, like Robert Scott, claim that the entrance of China into the World Trade Organization (WTO) has negatively affected the United States’ unemployment rate, the jobs production and its income per capita reduction. In the next pages, the report written by Roger E. Scott entitled: ‘Costly Trade with China. Millions of U.S. jobs with net job loss in every state’ will be analyzed to determine what China has been doing to become the number one exporter in the world, as well as the impact that China’s exporting has had in the United States. It also will be determined how costly it has been to the United States to trade with them; what other factors may have affected the United States and its trading capacity; and what the future implies for the commercial relationship between these two countries. Finally, it will be discussed whether or not the United States should seize other opportunities by creating new free trade blocks with another countries in the world, such as the North America Free Trade Agreement (NAFTA) with Mexico and Canada. Review In 2010, China became the number 1 exporter in the world. However, its inclusion in the international trade world was not easy. Its self-imposed isolation made of China a very unique country in terms of commercialization with other countries. Taking a step back in time, it was not a long time...
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...Discussion Questions for Smith vs. Marx (October 8, 2013 pp. 134-165) An Essay on the Background of Business Ethics: Ethics, Economics, Law and the Corporation 1. What is philosophy? A conversation. 2. What is "philosophical ethics"? A conversation about conduct, the doing of good, and the avoiding of evil. 3. What is "business ethics"? A conversation about right and wrong conduct in the business world. 4. Business ethics was once known as “the world’s most famous oxymoron” until about thirty years ago. What happened to change that view? Newspaper headlines of foreign bribes, Wall Street scandals, exploding cars, whistleblower conflicts and civil rights in the workplace allowed the view that value questions are never absent from business decisions to come into play and that moral responsibility is the first requirement of a manager in any business. From then on, it has become the general consensus that a thorough grounding in ethical reasoning is essential preparation for a career in business. 5. How was the “ruling class” defined in the seventeenth century according to Karl Marx? The ruling class in every age is the group that owns the means of production of the age’s product. In the 17th century, the product was almost exclusively agricultural and the means of production was almost exclusively agricultural land; landowners were the aristocrats and rulers. With the coming of commerce and industry, the owners of the factories joined the ruling class...
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...Executive Summary The new version of globalization sees the trans- and multinational companies being the major players guided by the policies and treaties of the oversight international organizations and supported by technology. Given that the focus continues to be cross border trade, integration and investment, in the absence of any communal decision making process with defined criteria, it has been clear that globalization continues to be challenged with respect to ethical decision making for sustainable development. This paper summarizes the role and function of the major globalization oversight organizations and touches on the extent of the power that they wield. It briefly discusses the advantages and disadvantages of globalization and attempts to identify the goals of globalization and given these goals and the identification of the stakeholders and subsequently to evaluate whether or not it is a driver or barrier to ethical decision making and sustainable development. ‘Ethics is more than the right thing to do: it's the smart thing to do.’ Global Institute of Ethics 1.0 Introduction It appears to be no easy feat to get a precise definition for Globalization. The definition can range from that of Nobel prize-winning economist Joseph Stiglitz who defined it as “the closer integration of the countries and peoples of the world which has been brought about by the enormous reduction of costs of transportation and communication...
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...What are Business Ethics? Meaning Ethics is a branch of social science. It deals with moral principles and social values. It helps us to classify, what is good and what is bad? It tells us to do good things and avoid doing bad things. So, ethics separate, good and bad, right and wrong, fair and unfair, moral and immoral and proper and improper human action. In short, ethics means a code of conduct. So, the businessmen must give a regular supply of good quality goods and services at reasonable prices to their consumers. They must avoid indulging in unfair trade practices like adulteration, promoting misleading advertisements, cheating in weights and measures, black marketing, etc. They must give fair wages and provide good working conditions to their workers. They must not exploit the workers. They must encourage competition in the market. They must protect the interest of small businessmen. They must avoid unfair competition. They must avoid monopolies. They must pay all their taxes regularly to the government. In short, business ethics means to conduct business with a human touch in order to give welfare to the society. Need or Importance of Business Ethics Stop business malpractices : Some unscrupulous businessmen do business malpractices by indulging in unfair trade practices like black-marketing, artificial high pricing, adulteration, cheating in weights and measures, selling of duplicate and harmful products, hoarding, etc. These business malpractices are harmful to...
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...are in the correct Chapter when you take the quiz. | Question 1 5 out of 5 points | | | If trade restrictions among nations were eliminated:Answer | | | | | Selected Answer: | competition would increase, resulting in lower prices and increased choices for consumers. | Correct Answer: | competition would increase, resulting in lower prices and increased choices for consumers. | | | | | Question 2 5 out of 5 points | | | Trading blocs are groups of countries:Answer | | | | | Selected Answer: | that have reduced or eliminated tariffs allowing for a free flow of goods among member nations. | Correct Answer: | that have reduced or eliminated tariffs allowing for a free flow of goods among member nations. | | | | | Question 3 5 out of 5 points | | | In countries like China and India, the availability of cell phones:Answer | | | | | Selected Answer: | has enabled these nations to greatly improve telecommunications without investment in conventional landlines. | Correct Answer: | has enabled these nations to greatly improve telecommunications without investment in conventional landlines. | | | | | Question 4 5 out of 5 points | | | When the total value of exports is higher than the total value of imports, a country experiences a _____Answer | | | | | Selected Answer: | trade surplus. | Correct...
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