Free Essay

Business Financial Systems

In: Business and Management

Submitted By renj1976
Words 1214
Pages 5
In today’s economy, members in the U.S. market, in addition to, competing within the national boundaries, also compete for business in

the global market. There is a need for high productivity at lower costs and employers compete through a myriad of situations such

as hiring preferences, compensation, promotions or layoffs (Prempeh, 2013). Many factors affect a company’s decision to expand its

business and its ability to succeed internationally. An in-depth analysis of overseas political and legal environments, as well as corporate

and ethical policies must be examined prior to negotiations occurring in the global business market. Each country have different laws

addressing the treatment of employees in the workplace. Standards that may be unethical in the United States may prove to be an

opportunity for laborers in other countries, making it more difficult to establish and build business relations. This paper will

describe and analyze employment and labor laws in the domestic and international markets, and the impact those laws may have on the

XYZ Construction Company.

Employment and labor law initially arose out of the desire to protect the employee from unethical and immoral practices in the workplace

and combat preferential and bias treatment towards specific groups of people. The establishment of the employment and labor laws was

set in place to provide redemption and equality for employees. There are four categories dealing with employment law. Employment at will

is a contract of employment for an indeterminate term, is terminable at will by either the employer or the employee; the traditional American

rule governing employer–employee relations. One of the first laws to restrict the employer’s right to freely terminate employees was the

National Labor Relations Act, which has reduced the number of employees covered by the employment-at-will doctrine ("Executive

Concepts", 2011). In the global market, employers constantly seek cheaper and more efficient labor. However, employers must confine their practices to the

domestic laws of the jurisdiction where they operate. The U.S. labor standards are not dependent on conditions in other countries and

have very stringent laws against mistreatment of their workers (Donaughey et. al, 2014). There are three major pieces of legislation that

govern labor–management relations in the United States today: the Wagner Act of 1935, the Taft–Hartley Act of 1947, and the Landrum

–Griffith Act of 1959, all of which are known as the National Labor Relations Act (NLRA). The NLRA guarantees the rights of workers to

organize and bargain collectively and forbids employers from engaging in specified unfair labor practices ("Executive Concepts", 2011).

In some countries, child labor and inhumane treatment of laborers are common. Safety standards are ignored to produce cheap goods.

Because some countries do not enforce child protections or human rights, the government pays little or no attention to this type of

treatment. Some high powered distance countries accept inequality, in these areas women remain disadvantaged in many areas of life

such as education, employment, health, and civil rights.

Child labor including indentured servitude and child slavery, have existed throughout American history for quite some time. Economic

development motivated workers to move from farms and home workshops into urban areas and factories where children were often

preferred, because they were less threatening, more manageable and unlikely to strike. Due to the opposition of child labor in the North,

many factories migrated to the South where the practice was more accepted. Most child labor occurs because children and families are

poor and lack options and opportunity for education and income. Many factors affect poverty, but international agencies are increasingly

paying attention to trade policy as a key factor.

Additionally, discrimination against workers have been an ongoing issue in labor relations both domestically and globally. With many U.S.

firms having operations overseas, the question of the extent to which U.S. laws prohibiting discrimination apply to foreign countries

naturally arises. The Civil Rights Act of 1991 extended the protections of Title VII and the Americans with Disabilities Act (ADA) to U.S.

citizens working abroad for U.S. employers. Amendments to the ADEA in 1984 had already extended that act’s protection in a

similar manner. The provisions of these acts also apply to foreign corporations controlled by a U.S. employer ("Executive Concepts",


Another ongoing issue in labor relations is ethics. Individuals recognize that a countries perception is influence by culture (De George,

2006). A collectivist culture, people pay more attention to social relationships than behavior. A New York executive explained to Asian

students that his wife and him went to prison for conspiracy. Their nephew was living with them and he was selling drugs from their house.

His wife and him were accused and sentenced to jail time for many years. When Asians students heard this, they were horrified. To the

Asian culture, they believe that family relationships are more important than the crime. Whereas the American culture, we see nothing

wrong with the punishment. This is an example of differentiation of cultures ethical perception (De George, 2006). In other countries in

Asia, it is customary to socialize while conducting business. Negotiations are conducted and relationships are formed over drinks or dinner,

this custom is not readily practiced or welcomed in Western cultures because the act of socializing while conducting business transactions

can be perceived as unprofessional. It is a fact that in most Asian cultures, business executives do not base their investment solely on the

economy, factors such as networking and business relationships are vital.

The business world can be a very complex world, especially in terms of domestic and global relations. There are many aspects to

consider especially in international relationships. Most countries have stringent guidelines while others do not and for some building

relations through social interactions are vital to business transactions. Some country have no child labor laws, while the United States has I

implemented measures to ensure such practices do not go unpunished. Business relations involves in-depth research not only to

understand the business relations of the country where the interest lies but also to ensure culture is understood.

The United States, unlike other countries, has many laws in place to protect against child labor, unfair treatment of laborers,

Americans with disabilities and discriminatory practices.

Donaghey, J., Reinecke, J., Niforou, C., & Lawson, B. (2014). From Employment Relations to Consumption Relations: Balancing Labor Governance in Global Supply Chains. Human Resource Management, 53(2), 229-252. doi:10.1002/hrm.21552

Larion, A. P. (2014). Regulating Domestic Work by the International Labour Organization. USV Annals Of Economics & Public Administration, 14(1), 238-243.

Prempeh, J. H. (2013). The Impact of Globalization of Globalization Standards: The ADEA and a need for more legislative protection. Labor Law Journal, 64(4), 198-204.

Convention and Recommendation concerning Decent Work for Domestic Workers. (2011).
International Labour Review, 150(3-4), 439-454. doi:10.1111/j.1564-913X.2011.00128.x

De George, R. T. (2006). Business Ethics (6th ed.). Upper Sadle River, NJ: Prentice Hall, Inc. A
Pearson Education Company.

The Levin Institute . (n.d.). Globalization 101. Retrieved from

Trevino, L. K., & Nelson, K. A. (2007). Managing Business Ethics. Straight Talk About How To
Do It Right. [University of Phoenix Custom Edition e-Text]. : John Wiley & Sons. Retrieved from , website.

Similar Documents

Premium Essay

Universal Banking

...Universal banking is the norm in lower- and middle-income countries. Ever- expanding safety nets also seem to be the norm in the 20th century in these same countries. Is there a connection between the two? Should the structure of the financial system influence the depth or breadth of the financial safety net adopted by governments? Why or why not? The role and the future of safety nets as an inherent feature of the majority of financial systems today have been debated widely following the recent financial and economic meltdown. In order to develop adequate reforms for the global financial system, it is important to understand the role of safety nets in both developed and developing economies and its interconnection with the financial institutions. This paper will investigate two major issues. First, it will analyze interconnection of safety nets and universal banks in the lower- and middle-income countries (LMIC). Second, it will look into interdependence of the safety nets’ features and the types of the financial systems. It will argue that safety nets’ breadth and depth should be influenced by the structure of the financial system. Universal banks and safety nets in lower- and middle-income countries The 20th century witnessed universal banks and safety nets spreading across the LMICs. The explanation of this phenomenon is complex as universal banks and safety nets developed independently, but definitely influenced and reinforced each other in the LMIC markets.......

Words: 1330 - Pages: 6

Premium Essay

Risk Disclosure

...Financial stability and risk disclosure Keynote address by Mr Jaime Caruana, General Manager of the BIS, to the FSB Roundtable on risk disclosure, Basel, 9 December 2011. Abstract High-quality risk disclosure is good for markets, because it helps investors make more informed decisions. It is good for prudential supervisors, because it makes banks more accountable to both supervisors and investors. And it is good for financial stability, because it reduces the chance that unexpected events will disrupt the system. To be effective in promoting market discipline, disclosure must be complemented by strong incentives for counterparties to engage in monitoring. The public sector's role in promoting transparency arises from a number of market failures, including the externalities to be gained from common standards, the "free rider" problems that may lead to too little investment in producing and gathering financial information, and the tendency of markets to overreact to bad news when the information environment is clouded. Guided by these considerations, the Financial Stability Board and the Basel Committee on Banking Supervision have long supported improvements in transparency, through their work on accounting, disclosure templates and aggregate market data. At the same time, industry and investor representatives need to play a key role in developing disclosure standards. Accounting standards need to converge, standards for the discussion and analysis that accompany financial...

Words: 2400 - Pages: 10

Premium Essay

Ifa Progress Report

................................................ The Financial Sector Assessment Program (FSAP) ............................................. The Reports on the Observance o f Standards and Codes (ROSC) ....................... The Financial Sector Reform and Strengthening Initiative (FIRST) .................... The Financial Sector Reform and Strengthening Initiative (FIRST) .................... Combating Money Laundering and Terrorist Financing (AML/CFT) ................. Debt Sustainability & Debt Management ............................................................. Social Protection................................................................................................... A. B. C. C. D. E. F. ANNEX Accounting and Auditing ........................................................................................... Corporate Governance ............................................................................................. Insolvency and Creditor Rights ................................................................................ 22 28 33 2 INTRODUCTION 1. In response to major financial crises in the 1990s, the international community embarked o n a range o f initiatives to help prevent crises and to manage them in the event that they nevertheless occur. This framework i s referred to as the International Financial Architecture (IFA). 2. Lessons drawn from the aftermath o f those financial crises underscored...

Words: 12222 - Pages: 49

Premium Essay

Contemporary Business Issues

...Module 1 - The Accoutant As Strategic Business Adviser The Need For Advice 1.4 (9 issues small business entrepreneurs seek advice about - business structure, IP, liability, regulation, contracts, etc) 1.4 (Malach, Robinson & Radcliff 2006) 1.4 (business efficiency & productivity, management information systems, risk management & internal controls) 1.5 (strategic level - selecting appropriate growth strategies, identifying new products and markets, etc) 1.5 (the need for advice variety of reasons - consider the demand for advice arises) 1.5 (Xiao & Fu 2009) 1.5 Table 1.1 - Characteristics Of Different Sized Organisations 1.6 (SE MSE LE - organisation, strategy, customer/community, financial, governance, work force, IT processes) 1.6 Requests For Advice: Operational - Srategic - Global 1.7 (improving operational performance, greater strategic role, globally relevant issues) 1.7 Example 1.1: A Busniess Dilemma 1.7 Counterpoint (opposing arguement, soft skills, first: make the right decision about the services they perform - second:) 1.7 Providing And Implementing Advice (technical skills, soft skills) 1.8 Figure 1.1 - Providing Business Advisory Services 1.8 (issue, requirement, request, investigation, advice, decision, implementation) 1.8 (recommend actions should be well supported, identify key stakeholders) 1.9 Figure 1.2 - The Chain Of Events For Business Advisory Services) 1.9 Example 1.2: Succession Plan - Please Help 1.9 ...

Words: 7475 - Pages: 30

Premium Essay

Strategy Map

...Strategy Map – DEPARTMENT – Funds Department The following illustration depicts the strategy map of the DEPARTMENT – Funds (R&S) Department. The business unit, reports under the Financial and Distribution Services Division of DEPARTMENT. The key responsibilities of the Funds Department is to facilitate the collection of sales amounts due from Travel Agents, and settling of the funds due to Airlines, this process is done through the Hinge Bank Account while ensuring the funds of the Airlines are safeguarded against any risk. The business unit is comprised of a Central Team in XXXX, managing the coordination and development of the process, combined with a Regional Team responsible for execution of the daily operations. The development of the strategy map, allows the Funds department to address the following areas: ➢ Identification and Alignment of the Funds objectives with the “DEPARTMENT Strategic House” and Vision. ➢ Communication Tool to allow the stakeholders to understand the key areas the department are focusing on. ➢ Identifying the cause and effects of implementing certain processes and strategies, and how this would contribute to driving the organizational objectives. [pic] [pic] Learning and Growth Perspective People, Performance & Development: ➢ One of the key objectives of DEPARTMENT is to deliver its mission, by making the organization a great place to work through living and upholding its values on an......

Words: 1926 - Pages: 8

Premium Essay


...demand will be change as well, so managers have to expand the size of business to make the organization more perfect and get effective, efficiency achievements. According to expand business, the company should do more international trade, it will make the globalization and the globalization has more benefits. For example, it can reduce the goods costing, which some countries can open the factories on China. However, the globalization has some disadvantages. For example, the global financial crisis occurred on 2008. This essay is going to analyses how globalization and global financial crisis in the business environment impact on the organization you work in and the tasks you undertake. The globalization refers to the system of contact among the countries of the world in order to improve the global economy. The globalization is the amalgamation of economics and societies all over the world. Globalization including economic, technological, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure (Hotbabefacthicks, 2010). The global financial crisis refers to a widespread economic emergency that began in 2007. Beginning with the crash of the United States financial system, the crisis quickly spread worldwide, thanks to the interconnected marks of modern global trading systems. It is still impossible to fully explain the effects of the global financial crisis, as the disaster continues to damage and impede......

Words: 1357 - Pages: 6

Free Essay

Financial Crisis's viewpoint Financial Crisis It’s commonly believed that the financial crisis happened during 2008~2009 is one of the most serious financial events in human history. A collapse of the US sub-prime mortgage market and the result of the housing boom in other industrialized economies have had a ripple-effect around the world. Furthermore, the other failures in the global financial system have surfaced. Some financial products and instruments have become so complex and twisted, that as things start to unravel, trust in the whole system started to fail. All of this comes at a price From 2006 to 2009, our economic world have been changed. Comparing the activities of 2006 and 2009. first, real GDP was essentially unchanged, making 2006-2009 the worst three-year period science 1946-1948. in spite of an essentially zero increase in production for the 2006-2009 period, personal consumption grew by almost 2 percent. however, private investment fell by more than 30 percent. on the other hand, the banks charged off $27 billion in bad bet for 2006, but this exploded to $191 billion in 2009. personal and business bankruptcies field in federal courts accelerated dramatically over the 2006-2009 period, with personal bankruptcies increasing by 136 percent, while business bankrupts increased by 209 percent. Since the outbreak of the financial crisis, the American banking system and the whole financial industry's problems have been exposed: many United States financial institutions......

Words: 899 - Pages: 4

Free Essay

Islamic Finance: Can It Be a Remedy for Financial Crises

...ISLAMIC FINANCE: CAN IT BE A REMEDY FOR FINANCIAL CRISES? I. INTRODUCTION The financial system is at the heart of the modern economy. When this system works well, it enables to allocate resources that maximize the productivity of the economy. On the contrary when it does not work properly, the whole economy starts to decline. Because financial system must be considered as an in-built part of real economy in terms of credit mechanism. The recent global financial crisis began in August 2007 and after this time it spread gradually to the financial markets in the world. Although it is not severe as in its beginning phase but recovery is not but its aftershock is still going on. There has been numerous research conducted by many economists and analysts. According to the many of these studies, risky transactions, lack of surveillance, and greed that underlie this financial crisis. The relationship between Islamic finance and the financial crises has been discussed by many authors in some of these research. All those works has been done after the beginning of the global financial crisis. Thanks to its strength aspects include risk sharing mechanism, strict Sharia governance rules, tighter supervision and transparency policy, almost all of these works have been concluded that Islamic finance may make significant contributions to prevent financial crises like the current one. Also the reality of the limited impact of the current global financial crisis on Islamic Finance-based......

Words: 3382 - Pages: 14

Premium Essay

Executive Summary

...revenue and recorded $21.8 billion in net income. In light of challenges, the firm demonstrated their ability to continuously build their business. JPMorgan raised more than $2.1 trillion in capital for its clients, and more than $75 billion of these capital expenditures went to nonprofit and government entities. Since the 2004 merger with Bank One, JPMorgan has done well against other financial companies and performed slightly below the S&P 500. The company’s tangible book value per share has steadily increased over time, showing a promising future for JPMorgan. Legal and regulatory costs have decreased the value of JPMorgan’s stock, which has lead to a lower price/earnings ratio. Though these legal matters have presented a formidable obstacle, JPMorgan is determined to overcome them over time to make sure the quality of its business shines. Overall, JPMorgan’s four franchises have strengthened their leadership positions, increased their market share, and have continued to deliver on their commitment to improve customer satisfaction and foster innovation. Scope The data and analysis within this report comes from the audited financial statements by PricewaterhouseCoopers for the fiscal year ending December 31, 2014. Findings 1) JPMorgan has an outstanding franchise that has emerged as an endgame winner a) Recent JPMorgan financial results have shown its great ability to adapt to both marketplace and...

Words: 1222 - Pages: 5

Premium Essay


...Scholars have stepped in to conduct studies and researches in relation to globalization so to shed light essential in comprehension. The impact of globalization is a motion that is endless. The supporters argue that globalization has brought economic prosperity in the world in many ways while opponents associate most of the adverse effects with globalization. This paper will outline the impact of globalization in the context with the international business. The information will be useful as it will highlight the issues that are closely related to globalization and identify the existing gaps. A valid conclusion will be drawn with the recommendation that should be considered in future researches as far as international business is concerned. Technology and policies will be referenced in the explanation of how financial flows, foreign direct investment and the international trade liberalization have evolved. The discussion will therefore be based on how the changes that have been brought by globalization have influenced international business in various ways. Trade The world trade is on rapid expansion when compared to the gross domestic product. This has been manifested over the past two decades when the globalization was rampant. However while the impact of globalization was meant to bring more economic prosperity by increasing the competition of the products in the global market, the effect is not uniform. This therefore means that the benefits that are associated with......

Words: 2661 - Pages: 11

Premium Essay

Global Financing

...Global Financing and Exchange Rate Mechanisms Global Financing and Exchange Rate Mechanisms International financial institutions are very important for the world to function. International institutions provide capital, improves the standards of living in developing countries. International institutions include World Bank, IMF, and the regional development banks. This essay defines the roles of international financial institutions; as well as how they are used in financing operation. International financial comes with risk and the importance of managing the risk. Roles of international financial insititutions The role of international financial institutions is firm so that we can move forward to expanding to additional countries. The role of international financial institutions is to providing financial support and stable advice for project in developing countries. The role of international financial institutions is to provide stability in the developing countries. The role includes being governed by international laws because it involves more than one country. The international financial also supports the private sector in struggling countries by providing support and give initiatives to help the developing countries such as Africa. The international institutions provide loans and other aids to the countries ("Unisdr", n.d.). For example, with the Keystone pipeline project; this is project that is head by a company called TransCanada. Canada...

Words: 734 - Pages: 3

Premium Essay

“the Process of Globalization, Deglobalization, and Reglobalization”

...The Process of Globalization, Deglobalization, and Reglobalization Lots of people questioning what had happened before, so then currently we come up with this kind of economic situation? What does it mean of globalization? When and how it is started? How does the process and its impact to the current world’s economic, politic, social, trade, technology, and culture dimension? How does the future of our world economic? And where are we now? In this essay I’m dividing the process of globalization into three stages which are globalization, deglobalization and reglobalization. Every stage on globalization process had caused many changes in global world. I’m going to explain when, why, and how each stage of globalization affect the world. Let me started with the first stage which is what we called as “Globalization”. We can describe Globalization as “A widening, deepening and speeding up of worldwide interconnectedness in all aspects of contemporary social life such as economic, politic, and culture. It took place about a century ago between roughly 1850 and the start of World War I in 1914. We can defined "economic globalization" as the opening and deregulation of commodity, capital and labor markets which led to the present neoliberal globalization. "Political globalization" named the emergence of a transnational elite and the phasing out of the nation-state. "Cultural globalization" was the worldwide homogenization of culture. Globalization happened when transport costs......

Words: 3579 - Pages: 15

Premium Essay

Global Issues.

...UNIVERSITY OF NAIROBI SCHOOL OF BUSINESS MASTER OF BUSINESS ADMINISTRATION TERM PAPER TOPIC: ISSUES IN GLOBAL BUSINESS MANAGEMENT DSM 602: By DR. YABS NGETICH MONICAH D61/69197/2013 INTRODUCTION The scope of strategic business issues faced by companies and organizations striving to operate and be successful internationally has widened due to an increasingly broad geographic scope and the increasing complexity of technology. Strategic issues arise not only through the formal, periodic strategic planning processes in companies but also can, and quite often do arise unpredictably due to new insights, unexpected advances in technology or competitive activities in the market place. All companies have their way of identifying and dealing with these being their most critical strategic questions. However, theprocess of managing emerging strategic issues is typically non-structured, not necessarily optimally suited to enable the effective identification of the most critical questions and the appropriate allocation of top management attention and corporate intelligence support to answer the identified strategic questions. Despite the past research during 1960s, 1970s, and 1980s into the domain of strategic issues (SI), strategic issue management (SIM), and strategic issue management systems (SIMS) there is a scarcity applicable approaches for firms to use in improving their attention focus and distribution in strategic issue management processes. The underpinnings of strategic......

Words: 4553 - Pages: 19

Premium Essay

Global Finance Environment Paper cultural differences, consumer taste differences, product preferences and legal regulations. It is important to define and understand these differences when merging into national markets. Globalization is inevitable and it’s happening at an astonishing speed in nearly every market possible. The technology era that we are in has enabled businesses to join forces like never before and we are seeing significant changes in the global marketplace. There are main drivers in globalization and this paper will define three of them, as well as describe the risks associated with financial investing, and explain the importance of cultural sensitivity and ethics in global finance. Drivers of Globalization Market drivers Domestic markets are saturated and growth opportunities are often times limited. Expanding globally opens up many new opportunities allowing for real growth within a business. The following lists in detail the specific market drivers that play a key role in globalization; o Convergence of per capita income o Growing global and regional channels o Global customers due to increased organizational buying o Increasing number of world brands and global advertising o Convergence of cultural beliefs, lifestyles and tastes o Transferable marketing Cost drivers Availability of raw materials, sourcing ability and costs...

Words: 1180 - Pages: 5

Free Essay

Detail of Service Sector

...Detail of Service sector from 2009-10 Name: Shiva Kr. Yadav Roll No. 11316603911 SERVICES SECTOR: INTERNATIONAL COMPARISON Conventional wisdom suggests that during the early development phase of any country, expansion of output in manufactured goods precedes growth in the services sector. As a country progresses further manufacturing often takes a back seat, giving way to the services sector in terms of both output and employment, and manufacturing firms themselves become increasingly service centric in order to remain competitive. Some have argued that the decline in manufacturing and corresponding shift to services is unsupportable in the long run as services depend critically on manufacturing for their demand. Although this argument may be applicable for certain services such as retailing and transportation, it does not entirely hold for many other services. IT in particular very high services sector growth. Russia at 5.5 per cent and Brazil at 4.0 per cent are a distant third and fourth respectively. While India’s growth rate of the services sector at 10.1 per cent in 2009 was higher than that of China at 9.6 per cent, in 2010 it has decelerated to 7.7 per cent while China’s has remained constant (Table 10.1). All this highlights the prominence of the services sector for India. Despite the higher share of services in India’s GDP and China’s dominance in manufacturing......

Words: 2264 - Pages: 10