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International Business
In general, it is ethically defensible to offshore work, even at the expense of long-time domestic employees. For one, as manager my primary duty is to the shareholders, which means that my first obligation is to enhance shareholder wealth. Other obligations are secondary. In addition, there is usually no obligation to long-time workers. In the U.S., employment is "at will," meaning that employees can be terminated even without cause. There are exceptions to the at-will doctrine, however, such as for employees with contracts individually or as part of a union. It is not ethical to offshore labor where an employee has a contract protecting their employment, if the offshoring is in violation of the contract.
Ch 4 Q3. Competition in the form of imports from countries with lower wages is not unfair, as long as the price of labor is set by market forces. Price of labor is just one dimension of competitive advantage. Indeed, in many cases the developed country has a competitive advantage in education, training, access to capital or other considerations. Thus, each country competes on its strengths, which is not unfair. This argument is the best interests of the unions and the people they represent. The unions keep up membership, which is the key driver of revenue. The union members benefit directly from the wages and benefits they receive. They would, in theory, benefit from the competition in the form of lower prices, but this benefit would not outweigh the direct wage benefit they receive from limiting competition. The country as a whole does not benefit, as the nation would receive more goods for less if the trade is allowed.
Ch 5 Q. 3. The ideal trading policy that firms should push for government would be those that allowed them to and their suppliers to have unfettered trade, while eliminating foreign competition. What is best for the individual firm is not necessarily what is best for the nation as a whole. Companies want to see open trade in their industry with respect to their ability to import components and export finished products. However, they benefit from having competition in the domestic market limited. Therefore, free trade is the first objective for businesses because it gives them an opportunity to lower costs and develop overseas markets.
Stakeholder management is also defined through a series of escalation processes to ensure that GE senior management at the subsidiary, regional and global levels stay consistent with each other from a policy standpoint as well. GE relies on cross-functional teams within their strategy planning process that also enables greater stakeholder communication as well (Thomas, Bollapragada, 2010). GE also has extensive sustainability and "green" initiatives in place that also provide for
These can create significant management problems due to the impact of different cultures, taxation and pricing, the complexity of choosing the optimal structure for international business, high political risks and many other issues. The specifics of financial planning is determined by the following problems, including volatility in exchange rates, particularly the national taxation, revaluation of currencies, possible difficulties with the export of funds from abroad, problems with in-house transfer pricing,
International Business Environment Outline and critically discuss the criteria by which they judge whether or not a country is stable. International businesses faces a number of risks when they decide to operate overseas. Their ability to make sound investment decisions and to address those risks is directly related to the stability of the country in question. Firms therefore need to develop mechanisms for measuring stability before making the decision to enter a
International Business Over the last several decades, globalization has been having profound impact on the way businesses are operating. This has created shifts in the markets for a wide variety of corporations seeking to aggressively expand into these areas to increase their overall profits. A good example of this can be seen with a study that was conducted by the UN Conference on Trade and Development. They found that nearly 90%
Other tools frequently used in this approach are positioning surveys and moving-average trend following trading rules. Fund managers regularly use these patterns to take informed decisions for short-term investments (Exchange Rate Forecast, 2010). Exchange rate risk affects both revenues and costs, which in turn affects a company's marketing, production, and financial decisions (Shapiro, n.d.). If a company's revenues are down then they might find themselves with less money to produce
International Business Law -- Recognition International Recognition Law -- Recognition The number of states in the world map is constantly increasing. In the beginning of 20th century it was fifty five, in the middle it touched the figure of seventy five and by 2005 it soared up to 200 in total (Crawford, 2006). With increase in number of states, the concept of state recognition is also emerging on the international platform, where