International Business Ethics - Assignment Example

International business ethics By + Question Why is business ethics regarded as necessary? The concept of ethics majorly concerns a person’s moral judgements about something that is right or wrong. The decisions made within a business maybe through people or groups though whoever makes them is always guided by the culture of the organization. Ethical decision is a moral one and employees must resolve on what they think is the right course of action (Enderle, 2009). Ethical behaviour and business social accountability can bring great benefits to a business premise such as: making the employees to stay in the business thus reducing the labour turn over and significantly increasing the productivity, and attracting customers to buy the products from the firm hence triggering the sales and profits. Question 2: Who is Jeremy Bentham and why is he a significant figure to philosophical ethics? Jeremy Bentham was a very great English philosopher and at the same time very active in political issues. He was born in Hounds ditch; London on February 15, 1748.He remains a great figure for his good work in moral philosophy where he perfectly evaluates the concept of utilitarianism (Enderle, 2009). This principle vividly explains the idea of actions in relation to their consequences. The appropriate consequences that specifically trigger the element of happiness in every individual involved in the action. The features of the moral philosophy are the greatest happiness concept, artificial recognition of someone’s interest with those of others and global egoism. These elements would provide social, legal and moral improvements according to the knowledge Bentham had in ethics. Bentham’s moral philosophy clearly reflects the element of psychological view that the major motivators in individuals are pain and pleasure. In business ethics, there is an important issue on the equality in the place of work in that the rights of the employees are valid. Bentham supported this strongly (Frost, 2011). Question 3: Why according to Joel Bakan do corporations have the personality of a psychopath? According to the concept of law, corporations are needed to facilitate and pursue their interests above all others instead, they prey upon and abuse others without the concern for legal rules or moral limits. Bakan had a view that corporations were growing to be more superior globally and controlling the lives of people in a manner of which they were having less knowledge. Bakan was majorly having an interest of displaying information about the nature of corporation for easy access by the public (Frost, 2011). He argued that the corporations have a lot of money or wealth that they were only creating positive images to themselves and he greatly wanted a state of balance and creation of public consideration. Bakan insists that the corporation has a moral imperious to create large volumes of money as it is also possible for its stockholders and the law retains this goal. According to the argument basis of Bakan, the corporation has traits of psychopathy that include people being put at risk in order to satisfy the corporate goal, blackmailing the public with false reputations that are in the corporation, manipulation, lack of empathy and strong beliefs that one is the best. These aspects might lead to the destruction of the firm in the long run. Due to these informalities, Bakan urges the government to implement greater democratic controls over corporations in order to bring back the sense of serving the interests of the public (Hayden, 2009). Question 4: For the economist Jeffrey Sachs, why does sub-Saharan Africa still experience such high levels of extreme poverty? Extreme poverty is a major defect in the sub-Saharan Africa and efforts to eradicate this calamity are in process. Jeffrey Sachs a great economist visits Africa for a case study on how this deadly issue can end. Various issues make sub – Saharan Africa to underperform in terms of economic growth and development. These include technological concepts, physical issues and the inability to achieve the millennium development goals. Africa did not experience a green revolution. Sub- Saharan Africa lacks the most prominent flood plains that trigger the large scale and low cost production in irrigation. The rainfall is also not reliable in most regions making the famers to harvest low yield and most of them are low-income earners who cannot afford buying fertilizers to improve the yield. The food production per person in Africa has been falling and the occupants’ caloric intake is the lowest in the world making food insecurity common (Homann, Koslowski & Luetge, 2007). The labour force is always concentrated on subsistence agriculture making the economy to produce poorly. Question 5: In what ways can global organized crime contribute the development and economic prosperity? Global and organized crime is always a major problem in the economy and governments are always radical in order to away with it. However, in a deep perspective in economics there are some elements of prosperity due to these illegal operations. The economic advantages are factors such as the improvement of security. Security in various states will rise in order to curb these situations. Stable security in an economy will attract great investors (Mitchell, 2009). The investors will set multi-million projects that will trigger economic growth and development. Transitional and organized crime is always a big business. In 2009, there was estimation that there was a generation of eight hundred and seventy billion dollars. This value was equal to 1.5% of global gross domestic product. During that year, it was more than five times the amount of official development maintenance and it was approximately 6% of the international export of products. This facilitates various businesses globally and the net income or a return of the enterprises brings a positive change in the economy. The crimes will create employment opportunities for various individuals who are not constructive at any point of production. This improves the living standards of the employees since they are always paid a suitable amount after transaction such as drug peddling. The transactions in the global crimes are very expensive due to their level of risk (Mitchell, 2009). This generates money that the peddlers use in investments that eventually benefit the economy through the concept of the invisible hand. Question 6: Explain and demonstrate whether economic globalization has been able to reduce global poverty in the poorest regions of the world? Abstract Advocates of the economic globalization view it as a key to impending economic development and in general, it is always explored to be a positive force that improves the quality of life, hastening of economic growth, high productivity, effective and efficient allocation of economic productivity. However, anti-globalization policy urges that it facilitate poverty and lead to inequality in the distribution of income. Many developing countries board on the channel towards integrating their economic situations with the global economy through liberalization of their investments. There will be trade administrations with the expectation that will automatically facilitate economic growth and boost the living standards of the less fortunate or poor (Snoeyenbos, Almeder & Humber, 2001). This paper attempts to assess the impact of economic globalization on poverty and equality in Pakistan since it is one of the poorest regions in the world. This is done through the focus on the trade liberalization aspect of globalization. The outcome from Granger interconnection point out that trade liberalization has contributed to a positive role in the creation of employment opportunities but it has a negative impact on the per capita of gross domestic product. Generally, the results clearly suggest that globalization leads to the reduction of poverty and at the same time triggers income inequality. There is a very important concept that Pakistan should consider in order to enjoy the benefits of economic globalization (Snoeyenbos, Almeder & Humber, 2001). It therefore needs to adopt pro-poor growth policies that emphasize investment in human development and provision of a structure that facilitates social safety principles for the poor. Introduction The concept of development is in great relation with change. A vibrant and constant process shifts the economies from lower phase and higher phase of development. It is a process of social and economic transformation within the poor countries. The element of global growth and development is essential to cover the main social and economic objectives and the competent values that the low-income societies are striving to achieve. Some of the essential purposes of development include reduction of inequality, level of unemployment and the poverty trap (Kline, 2005). Definitely, the main objectives of economic growth and development are to decrease the level of poverty and provision of necessary or basic needs in that order. International financial institutions such as international monetary funds and the World Bank are playing a greater role in the global economic structure by ensuring that there is reduction of poverty in developing countries. In the previous years, industrialization was the mechanism for facilitating growth rate while recently agriculture is suffering at the expense of an industry making the terms of trade to worsen in the agricultural sector. There was a problem in achieving the high growth rates in least developed countries because of the poor performance on human indicators. Due to this situation, the World Bank came up with fundamental principles that boosted the idea of acquiring basic needs and uniform distribution of growth. Growth policy was very vital in this case as it was considered to be a necessary pre condition for sustainable development though countries are urged to look after the poor citizens and provide them appropriately with basic facilities (Paliwal, 2006). The current situation of globalization is structured on the ideal view of the world where markets work effectively, technology and capital stream freely. Individuals have the opportunity to contact all the ideas, information and the ability to participate in the market on an equivalent parameter. Economic globalization happens to some extent due to advancements in technology, reduction in transportation costs and careful decision on behalf of various central authorities to boost their incorporation with the global or universal economy. Indicators of economic globalization are free movement of labour, elimination of trade restrictions such as tariffs and liberalization of capital markets. In general, economic globalization channels towards a higher growth and productivity thus reducing the degree of poverty (Rosenthal & Barry, 2009). Literature review Economic globalization is a multi-faceted sensation and its outcome is never uniform. Individuals who are against globalization always argue that globalization strongly affects the poor and specifically the poor regions in the world while pro-globalizers certain that it leads to poverty reduction. A country such as china has benefited from the concept of globalization while Korea has not fully utilized this idea (Paliwal, 2006). Countries that took the concept of economic globalization to be a serious idea experienced an authoritative force for economic growth while the states that were ignorant for this were struck by extreme levels of poverty. It is clear that the literature concept indicates that economic globalization triggers economic growth, creates employment opportunities and hinders the level of poverty (Kline, 2005). However, the economic development affects countries differently due to varying degrees of population growth, government authorities, and the various institutional issues internationally. Objective of the study The main objective of the study in this article is to examine the connection between economic globalization, income and poverty in Pakistan since it is one of the poorest regions in the world. The research is relying on the granger causality experiments. Methodology In this research, there is a proper examination in the connection between poverty, inequality and economic globalization in Pakistan through the concept of granger causality analysis. The study implements two methodologies to achieve this analysis. The approach of vector error correction model that permits an individual to examine for short-run and long-run destiny while the Toda and Yamamoto and Dolando and Lutkepohl approach examines for only short-run fate though has an upper hand that it does not need a prior examination (Paliwal, 2006). The VECM approach This concept is always important in the evaluation of the relationship between poverty, globalization and in equality. If there is no restriction in the VAR concept, it is not possible to test for granger causality in the time factor experiment due to the existence of complex aspects in the variables that results to false results. The TYDL approach The concept of VECM principle that entails pre-testing via a basic factor and integration examinations face effects from the physical outlook and this may probably lead to incorrect conclusions concerning the fate. To solve this problem, the TYDL came up with a technique that is applicable without considering the integration of features of the model. Discussion The involvement in trading activities has always been thought of to be a major cause of economic growth and development of a poor country may be subject to safeguarding a trade expansion. According to previous research, most of the fewer developing countries were involved in serious trade liberalization in the 19th century and they received some level of favourable market access. Unfortunately, these factors did not fully lead to the effective reduction of the level of poverty (Paliwal, 2006). Most of the least developing countries are always in need of the multilateral trading structure but it is always challenging to derive benefits from the implementation of the central authorities. The purpose for this article was to examine the relationship between the economic globalization, income inequality and the level of poverty in Pakistan that is one of the poorest regions in the world or globally. The overall research was in consideration of the granger causality experiments. In this study, it is clear that economic globalization is found to have a negative impact on poverty in the long-run (Rosenthal & Barry, 2009). This is shown by the TYDL concept. According to VECM, there is existence of short-run and long run that illustrates the relationship between poverty and globalization. Generally, the research shows that globalization hinders poverty in the long run, creates employment opportunities but inequality is still a problem. Other factors trigger the economic growth such as political stability, institutional framework and macroeconomic variables. Conclusion Economic globalization is a paramount concept that is considered resourceful and beneficial to the growth and development of an economy. There are also negative effects of globalization on growth in developing countries and this increases poverty and non-uniform distribution of income (Rosenthal & Barry, 2009). The benefit from economic globalization depends on quality of institutions, market structure, and level of political stability, macroeconomic policies and the previous situation of the market. The least developed countries should adopt pro poor growth policies that will stress on the investment in human development and provision of a system for social safety for the less fortunate. Economic globalization happens to some extent due to advancements in technology, reduction in transportation costs and careful decision on behalf of various central authorities to boost their incorporation with the global or universal economy. Indicators of economic globalization are free movement of labour, elimination of trade restrictions such as tariffs and liberalization of capital markets (Kline, 2005). In general, economic globalization channels towards a higher growth and productivity thus reducing the degree of poverty. References Enderle, G. (2009). International business ethics. Notre Dame, IN: University of Notre Dame Press. Frost, M. (2011). International ethics. Los Angeles, Calif: London: SAGE. Hayden, P. (2009). The Ash gate research companion to ethics and international relations. Farnham, England: Ash gate Pub. Homann, K., Koslowski, P. and Luetge, C. (2007). Globalisation and business ethics. Aldershot, England: Ash gate. Kline, J. (2005). Ethics for international business. London: Routledge. Mitchell, C. (2009). A short course in international business ethics. Petaluma, CA: World Trade Press. Paliwal, M. (2006). Business ethics. New Delhi: New Age International. Rosenthal, J. and Barry, C. (2009). Ethics & international affairs. Washington, D.C.: Georgetown University Press. Snoeyenbos, M., Almeder, R. and Humber, J. (2001). Business ethics. Amherst, N.Y.: Prometheus Books. Stouffer, J. and Seiler, S. (2010). Military ethics. Kingston, Ont.: Canadian Defence Academy Press. Read More