An example of this could be social security benefits. These motivations help the company recruit top level employees and increase their overall productivity. But this can be a trade-off as these benefits and rewards can be costly. Takeaway 2 - Corporate Culture, Human Resources, and Ethics Zappos is a great example of a company that has created a lively atmosphere for their workers through their casual working environment. But another takeaway is that this type of culture is not compatible with many companies.
Aid can become an obstacle to development because of the tied nature of much aid, which benefits the donor country more than the recipient, in economic terms. Tied aid is bilateral aid in which the donor country specifies conditions relating to the way the money is spent. This often involved spending money on goods and services from the donor country. Aid is also an obstacle to development because of the frequently inappropriate use of aid on large capital intensive projects which may actually worsen the conditions of the poorest people. The strengthening of political ties as a result of bilateral aid may increase dependency and hinder democracy in the recipient country.
Negative externalities occur when social costs are more than a private cost. Governments may usually intervene when negative externalities arise, this is to tax demerit goods, which are goods that have negative externalities and are over produced in an economy. However, the government may find other solutions much more useful, for example; they find it more effective to subsidise merit goods, goods giving out positive externalities and also provide more information about the effects of demerit goods to discourage them. If markets were over producing demerit goods, those selling those goods such as firms would be taxed, so raw materials for the goods may be more expensive or possibly the machinery. This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought.
Addressing International Legal and Ethical Issues After taking the simulation CadMax company is faced with several types of legal, ethical dilemmas in entering into a business contract overseas. These dilemmas can occur in several different areas as the country of Candore is a dictatorship, and they are currently in the process of becoming a WTO signatory. When a company is going into agreement with a business with a variable political and economic structure the international law system can face many obstacles CadMax and Gentura are entering into a contract where CadMax is getting the global marketing rights for their medications and Gentrua will receive the technological knowhow to produce these products. The laws that would
Those who consider it to be a negative term, mainly the average consumer, would define price gouging as taking advantage of or exploiting in times of need by charging unfair and unreasonable prices beyond normal. On the other hand, a business owner or an entrepreneur would define it as turning a profit on goods which have suddenly become much more expensive to obtain or produce because of increased demand possibly due to an emergency or sudden event. However, some free market economists reject the term altogether and suggest that “higher prices can be viewed as a valid system for rapidly distributing scarce resources to those who need the highly desirable resources and sets off an economic chain reaction that ultimately remedies the shortages” (Price gouging, 09). Over thirty of the states in America have anti-gouging laws but the definition of price gouging vary from “excessive and unjustified” price increases or “unconscionable pricing”, to percentages amounts of previous prices, to “unjust or unreasonable profits in the sale of necessities” (Antitrust - Fuel and Energy Committee, 06). So price gauging may not be easily defined but it does mean something to those it affects.
However, there is a problem that Costco has to deal with is that their profits mostly from its membership fees instead its net income. They are sometimes keeping the prices too low to compete with their competitor but this strategy has a disadvantage. They couldn’t make a lot of profit from the merchandises. Therefore, a recommendation needs to be given. They should utilize their space in each store efficiently.
Even though union members—those who keep their jobs--- get their wages increased and enjoy improved working conditions and benefits, the economic issues that most unions brings to the United States outbalance the positive effects. As the United States competes with the rest of the world, firms struggle when one of their highest costs is directly related to labor. In the article Labor Unions by Morgan Reynolds, the author accurately explains this phenomenon: while higher wages are successfully achieved, they simultaneously reduce the number of jobs available in unionized firms. This occurs because of the basic law of demand: once prices of labor rise, then employers will purchase less of it. Hence such members’ benefits are achieved at the expense of consumers, nonunion workers, already unemployed people, taxpayers, and corporation owners (Reynolds,
Due to giving companies outsourcing opportunities, these companies will fire their staff because staff overseas will work for cheaper and sometimes even better. Also even though Symcor provides companies with 24/7 customer service, sometimes the speaking skills for people around the world is sub-par and will result in a communication barrier.
Some argue that is results in low workers motivation, inflexible to respond to customer’s needs or to adapt to changing market conditions. On the other hand theorists argue that it is a fair, treating everyone according to rules, cost efficient in organizations that use mass production and stability is maintained through control. A group of writers known as bureaucratic dysfunctionalists have identified several weaknesses of bureaucracies and criticized these sharply: The first one is Robert Merton: he argued that over time people in bureaucracies start to see “following the rule” as a goal. You act as if the goal is to follow the rule instead of the effect the rule has. He calls this goal displacement Selznick found something similar.
1) With that being said, exporting and importing is great for companies and society to bring goods and services to people, however the way trade is done can be viewed as unfair in regards to the welfare of people and justice for human man kind who is working in third world countries. “Proponents of fair trade argue that exchanges between developed nations and lesser developed countries (LDCs) occur along uneven terms, and should be made more equitable.” ("Free Trade Vs. Fair Trade," 2005, para. 3) “By contrast, free trade proponents believe that under a system of voluntary exchange, the demands of justice are met. Although free traders hope to alleviate poverty and improve conditions around the world, they prefer measures that are less intrusive than fair traders, who regard the unfettered market as injurious to these same goals.” ("Free Trade Vs. Fair Trade," 2005, para. 5) In my opinion, justice is not fully met just because the system is voluntary.