Premium Essay

Internation Accounting Thoughtput Model

In:

Submitted By patton110
Words 669
Pages 3
Introduction
ABC is company which founded in UK, currently their director want to invest business in either china or US. This paper applies the Throughput Model illustrates how the process of an individual’s decision choice is made

Throughput Model pathways
Generally, there are six pathways (1) P → D ,(2) P → J → D ,(3) I → P → D, (4) I → J → D ,(5) P → I → J → D and (6) I → P → J → D. They represent psychological egoism, deontology, relativist, utilitarianism, virtue ethics, and ethics of care, respectively.

(1) “P → D represents psychological egoism that stresses individuals are always motivated to act in their perceived self-interest.” (Rodgers, Gago 2001) On the one side, in this ABC case, if their director graduate from US and work for couple year in there. Then they will more likely to invest business in US instead of china. Because US and UK have similar accounting system, moreover there will face less communication barrier. On the other side, if this director is Chinese, he knows a lot about china then he will invest business in china because it fits his person desires.

(2) “P → J → D depicts the deontology viewpoint that emphasizes the rights of individuals and on the judgments associated with a particular decision process rather than on its choices.” (Rodgers, Gago 2001) This model are rules based, followed by guide lines. ABC company’s decision which place to invest business should vote by board of director. Another important aspect needs to consider is that whether UK government had certain law would encourage firm to trading with candidate country. Director also need to analysis both US and china’s law and tax policy, then decide which to go.

(3) “I → P → D highlights the relativist perspective which assumes that decision makers use themselves or the people around them as their basis for defining ethical standards.” (Rodgers, Gago

Similar Documents