Thus, J&L’s operating margin was exposed to the volatility of fuel prices. In order to stabilize operating margin, J&L has two options. One is to enter fixed-price contracts with its fuel suppliers, however, it does not work, because fuel suppliers tend to walk away when fuel prices rise and J&L will be left with unattractive options. The other (and the only available) option is to hedge by purchasing derivatives. Argument against hedging The most important argument against hedging this type of risk is that a corporation needs to, in exchange for hedging, (i) give up the upside of commodity prices going down (in futures, swaps and collar) or (ii) pay premiums (in options) or (iii) both.
On the other hand, this idea of free trade is highly disadvantageous, and even harmful, to the Global South with the Global North dictating prices. The less developed countries find it difficult to compete with the economically advanced countries and the production of primary products is poorly paid. What’s more, the fact that the price is dictated by supply and demand leads to instability regarding income. This limits the Global South’s ability to develop as investment is restricted due to economic instability; ultimately free trade has led to “the development of the underdevelopment” In keeping with minimal
Company mainly focused on maximizing the shareholder value by the CEO and other management’s managerial philosophy. Currently, Hill Country uses a risk adverse strategy to choose their business or project. Hill Country’s industry is high competitive but it kept going well with cost efficiency and quick reaction to customer requirements. From these reasons, Hill Country has few risks. However, analyst and experts present that Hill Country’s excess liquidity with zero debt is going to lose benefit and fail to maximize the shareholder value.
It is important to note that although all moral absolutists agree that there are fundamental ethical laws they disagree on the origin or authority of these laws. They may be religious or like Kantian ethics based on God and the existence of natural law. In general there tends to be a consensus that Absolutism comes in three distinct types. Platonic Idealism is the first significant example of absolutist theory. This theory is referred to as the theory of forms, the forms are eternal constants which give meaning to the world.
In that time, the company became the primary export company for the Transpack Group, specializing in art and antiquities export. To date, the company has achieved a lukewarm economic and financial position, ensuring its financial autonomy, but with very low profit margins. The reasons for BTG’s current position can be attributed to an absence of proper strategic planning, inadequate managerial leadership and corporate culture. Given this context, the Board of BTG has decided to “re-launch” the company, hire new management and initiate a new turn-around strategy. This paper will argue that in order to increase profit and shareholder value the company must diversify its sales portfolio while strengthening its core competencies.
This film also displays how greed is good in the way of competition. When Gates stole Job’s ideas and created a competing company, it meant it would keep prices of personal computers at a reasonable price. Going back to Gordon Gekko’s speech in the movie Wall Street, he says, “greed in all forms- greed for life, for money, for love, knowledge- has marked the upward surge of mankind.” This quote epitomizes the thought of self-interest. When people go to school, go to work, and do productive things, they do it for their own benefit and personal gain. That’s greed.
The difference is that utilitarianism states that no matter what a person should never stray from the moral that will bring the greatest good. Kant justifies that under certain circumstances one could stray from the moral as long as the truths are logically consistent and universalizable. Utilitarianism is broken down into two categories; act utilitarianism and rule utilitarianism. The act utilitarian believes that one cannot establish rules in advance to cover all situations, actions and people because they are all different. The rule utilitarian believes that there are enough human motives and situations to justify setting up rules that apply to all humans and situations.
From this perspective, the role of government intervention may arguably be indispensible. When a domestic economy suffers a market failure, it becomes the job of government to intervene through such measures as taxation or the introduction of regulatory measures into a particular market. However, if government’s intervention is too heavy handed, then the allocation of efficiency in that particular market may be worsened rather than corrected. This is what is known as government failure. This essay will therefore present a discussion on which is the lesser of the two evils; market failure versus government failure.
Assignment 2: Poverty and Pollution Case Study Bus 309 June 02, 2013 Beverley Carey Determine the ethical implications of businesses polluting in a third world country. Professor Summers argues that the bank should migrate of dirty, polluting industries to go the poorest countries. His implication is inhuman, Just because the countries has a lower cost of living doesn’t give them the right to go a polluted them. The Third World refers to the poorer and undeveloped countries of the world. Repeatedly, these countries have enormously poor ecological situations.
Cigarettes and alcohol are considered to be demerit goods because they are over provided by the markets, therefore, they are also over consumed by the people. The government believes that those goods are bad for the society and the people, therefore, the government tries to decrease the consuming of those demerit goods. Cigarettes and alcohol are inelastic demands. Their PED value is less than one but greater and zero. These two products will have a small change in the demand when the price is changed, which means that if the price is raised the demand of the product will not change drastically (fall by much in comparison).