Healthcare Finance in The United States of America

In United States the Congress had passed the Medicare Prescription Drug, Improvement and Modernization Act of 2003 or MMA and with this imposed a stoppage for 18 months on the starting of new physician owned specialty hospitals. At the same time, they also wanted to know the position regarding certain matters of physician owned heart, orthopedic and surgical specialty hospitals through MedPAC. The team visited sites, made legal analysis and met the share owners in these hospitals and finally presented a report to the Congress. It had also gone through the cost reports received from Medicare and inpatient claims of 2002, which was the most recent at that time. This will naturally form the basis of such hospitals being permitted or not. (Physician-owned specialty hospitals) The findings of this committee showed that:- Physician owned hospitals generally treated patients who had less severe problems and concentrated on specific diagnosis related groups and the reason for both of this was that these were expected to be more profitable than other patients. These hospitals do not treat as many Medicaid patients as community hospitals. Regarding the costs of patients in these hospitals for the patients, the Medicare patients did not get benefits of lower costs though the inpatients had shorter periods of stay. There was no appreciable impact of physician owned specialty hospitals on the community hospitals as seen in 2002, and there was also no impact on the financial performance of the community hospitals. Most of the differences in profitability can be rectified by improving the prospective patient system for inpatients that are made by Medicare. Thus according to the findings there are not major differences between the community hospitals and physician owned specialty hospitals in terms of costs or capability for services. (Physician-owned specialty hospitals) Differences among types of hospitals: We shall make comparison of the hospitals in India and USA. In India, apart from the government hospitals, there are a number of large hospitals run by trusts or large corporations. In the city of Bombay or Mumbai, the hospitals named Jaslok or Hinduja are run by trusts and Wockhardt Heart Hospital is run by a major pharmaceutical company. Even when the hospital has been promoted by a physician, still the hospital is run like a corporation as is seen in the case of Apollo Hospitals. There is now a new hospital named as Asian Heart Hospital in Bombay which has been promoted by a physician team and they have a large stake in the hospital. The team of physician is led by one Mr. Panda who is now the CEO of the hospital. These physicians have all invested their own funds, and to get more funds, they have even asked for more contributions from other physicians who are now not resident in India. The hospital is the result of a plan by these physicians in 1993-94. The hospital took about 10 years to complete. Thus one should realize that a hospital takes a long time to take shape up. (Doctors in arms) The biggest problems in the management of hospitals come from physicians and renowned physicians are sought for empanelment by hospitals. The physicians then continually force the hospitals to upgrade their infrastructure and also charge heavy fees from the patients. At the end of the services by the physicians, it is they who get the biggest returns. It is also difficult to retain the physicians as they leave at the earliest opportunity, and this statement is from one of the promoters of the hospital, GW Capital. They are now investing money in the concept of physician managed private hospitals. This resulted in its investment of Rs 150 million or about 3 million dollars in buying a 26 percent stake in another hospital group in Hyderabad, in 2000 called the Care Group. That group has expanded very fast and now has over a 1000 beds in its operations in six centers. (Doctors in arms) Thus the costs of the hospitals will require about 12 million dollars for a 1000 bed operation. At the same time, not all hospitals are made with money in mind and there are hospitals in Chennai or Madras in India which have 150 physicians, 500 nurses and 371 Para-medical staff. The entire team works within a budget of Rs 120 million or 2.4 million dollars. (Healing Ministry of the Madras Diocesan Medical Board) This hospital is run by a religious mission and its objective is to provide service to the people and this hospital does not want to make money, but run at break even costs. In United States, during 2002 there were 48 hospitals found to be physician owned hospitals. Of them 12 were heart hospitals, 25 were orthopedic hospitals and 11 were surgical hospitals. These hospitals are generally very small with average capacities of orthopedic hospitals being 16 beds, the surgical specialty hospitals being 14 beds and heart hospitals are the largest with average capacity being 52 beds. The general conditions of these hospitals are not full fledged as they do not have emergency departments, whereas 93 percent of the community hospitals have emergency departments. The reason for existence of these hospitals is the physician control over the hospitals. (Physician-owned specialty hospitals) At the same time, one of these hospitals has been named as one of country's top 100 heart hospitals. (Parkwest Medical Center) Financial position of private hospitals: According to available reports, the private hospitals are in a position to take on patients who are capable of paying for them, and not take on patients who have to depend on managed care organizations. This increases the incomes of the hospitals by 20 to 50 percent. This reduces the cost of a bypass surgery at one of the hospitals in India, Care to about Rs 80,000 or $1,700. The cost in India is higher by about 30 to 40 percent in corporate hospitals. Even the new hospital, Asian Heart has predicted a cash break even during the second year of operations, and by the end of the second year it expects to pay a 15 percent dividend to the investor. Thus on an investment of $50 million, the returns would be $7.5 million from the second year. (Doctors in arms) The position in United States is the same, and in spite of some private specialty hospitals not having made any distributions to stockholders, the study showed that the margin in these hospitals was about 13 percent in 2002 as compared to 3 to 6 percent that was seen for community hospitals. (Physician-owned specialty hospitals) The advantages of physician owned specialty hospitals: To find this aspect out, there were discussions with the physicians who were investing in these hospitals. The cardiologists and surgeons want to admit their patients, perform the required procedures and have the patients recover with minimum disturbance. They believe that community hospitals cannot match their services as those hospitals have a variety of services and missions that they have to undertake. The direct control by the physicians help to increase productivity through less disturbances to the schedules in operating room which come from the emergency cases that come about, decreasing the down time between operations between two different surgeries and this is due to cleaning the operating room more efficiently, increased ability to work between two operating rooms even when the operating rooms are blocked due to some other work and better efficiencies through direct control of operating room staff. As mentioned earlier, they also like to form specialty hospitals as they have increases in income. There is some increase due to productivity, but they are able to collect a share of the profits from the facility for themselves and other associated physicians. They concentrate on providing services that are profitable, on treating patients who are less sick and thus more profitable. (Physician-owned specialty hospitals) Even in India the same situation exists and most of the physicians who have now started developing hospitals have been working together earlier, and one of the main aims is to remove the pressure from managed health care systems that they have to face otherwise. There is now a distinct change in the formation of hospitals and new hospitals are being formed by physicians. The total costs have been discussed to some extent, but without the participation of physicians, the hospitals are unlikely to be successful.

Capitalist system

Individuals and businesses own most of the natural and capital resources. These are the factories, farms, machinery, land, minerals, and other resources used to produce goods. Individuals and businesses also buy and sell goods freely. Goods are distributed through the market of buyers and sellers. Capitalism is the economic system in the United States. Socialism is another type of economic system. In a socialist system, the people, through their government, own many of the resources and manage the economy. Representatives of the people decide what to produce and how much. The government then plans how to carry out these decisions. The government also distributes most goods and services, especially with regard to housing, food, medicine, and other basic necessities. Many nations today engage in limited socialist programs, such as socialized medical or education systems. However, only a few nations can be said to operate entirely under socialist principals. Command economy In a command economy, the government owns nearly everything that is used to produce goods. Government planners, rather than the people, make the decisions about what to produce and how to distribute it. North Korea is an example of a country with a command economy. Mixed economy individuals, businesses, and the government own some parts of the economy. All of these groups play a role in making economic decisions about what to produce and how to distribute it. Russia was once part of the former Soviet Union, which had a command economy. Russia now has a mixed economy. Communism: Government ownership of productive resources, and a one-party state to enforce decisions. The level of public ownership is usually higher than in socialism. It is even less efficient and even more equalitarian (although under communism, some folks appear to be more equal than others. Dictators and high party officials usually appear to live better than do common citizens). Fascism: Fascism claims to be capitalist, but as the state is not democratic, there’s little popular control over anything. The state (usually, some dictator or group of dictators) tends to reward its friends and punish its enemies, which leads both to oppression and an inefficient economy. (The firm that kicks back the most money to the government is the firm that survives and makes a profit, but it isn’t very often the firm that produces the best products at the lowest price. ) Both inefficient and unequal, this seems to represent the worst of all possible worlds.

Nuclear Power Vs Coal Burning Environmental Sciences Essay

Nuclear and coal discharged power Stationss provided about half of the electricity generated in the UK in 2007. Figure 1 shows a dislocation of the parts made by all of the beginnings of fuel used to bring forth electricity in that twelvemonth. Figure 1: Fuel used for UK electricity coevals on an end product footing in 2007 [ 1 ] . Coal is an cheap fuel that is comparatively easy to mine and the UK still has big militias. In 2001 the universe militias of recoverable coal were 1083 billion metric tons which is adequate to last over 200 old ages at current World ingestion degrees. [ 2 ] Unlike oil and gas, the bulk of which is concentrated in the politically sensitive country of the Middle East, the largest militias of coal are in North America, Russia, China and India. Nuclear power Stationss use comparatively little sums of fuel compared to char, so uranium can be easy stock piled. Known uranium stocks are merely plenty for approximately 50 to sixty old ages at current ingestion degrees. However, much of the U is available from less sensitive parts such as Australia, Canada and the United States, { see Appendix 1 } . Nuclear workss are powered by enriched uranium pellets. To guarantee continuation of electricity supply, up to 100 dozenss of pellets may be stored at each reactor at any clip. Each one inch pellet can bring forth the same sum of energy as one ton of coal [ 3 ] . This is because power station class coal has a calorific value of about 26 GJ/tonne and U has a calorific value of between 420,000 and 672,000 GJ/tonne i.e. about 20,000 times as big. [ 4 ] The mean thermic efficiency for atomic workss in the UK in 2005 was 38 % [ 5 ] . The newest coal engineering can accomplish about 48 % efficiency [ 6 ] . For comparing, typical efficiencies for the assorted ways of bring forthing electricity in the UK are shown in Appendix 2. Nuclear and coal discharged power Stationss work in much the same manner. Water is heated to do steam which turns turbines connected to generators which produce electrical power. The difference is that in atomic power Stationss a concatenation reaction is used to do the heat alternatively of firing coal. Nuclear power workss create heat through the fission of U atoms that are split by slow traveling neutrons bring forthing tremendous sums of energy. Figure 2 shows the basic designs of ( a ) dodo fuel workss and ( B ) atomic workss. Figure 2 Comparison of typical designs of fossil fuel and atomic workss [ 7 ] With coal fired Stationss the immediate pollution job is air borne atoms. The ash produced in the burning chamber besides presents a major waste control job because of the immense sums created. For illustration, a 1000MW coal fired station produces about 400,000 metric tons of ash per twelvemonth [ 8 ] . Whereas, 12,000 metric tons of waste is generated by all of the universe ‘s atomic reactors per twelvemonth. [ 8a ] Nuclear power workss do non bring forth the air pollution associated with coal, but the spent fuel is a risky waste that can stay a radioactive menace for 1000s of old ages. The fact that the atomic station needs a containment edifice to envelop the reactors highlights the possible danger of atomic power. The containment edifice has a strengthened concrete shell lined with steel which acts as a radiation shield to forestall any release of radiation in the event of an accident. It is designed to be strong plenty to defy temblors, aircraft impacts and sabotage efforts. The three major events that have slowed the advancement of the atomic industry worldwide are the Windscale fire of 1957, the Three Mile Island partial reactor meltdown in 1979, and the more serious Chernobyl reactor meltdown in 1986. The incidents showed the demand for a containment edifice because with the Three Mile Island accident the radioactive dust was successfully contained. Whereas, the Chernobyl and Windscale reactors did non hold a containment edifice which resulted in big countries of the environing countryside being contaminated by radioactive dust. The Windscale incident was on a much smaller graduated table than Chernobyl with a thousand times less radioactive Iodine 131 being released. [ 9 ] In all of the incidents hapless on the job patterns, faulty or unequal equipment and complacence about safety issues were involved. These incidents and the tremendous cost of decommissioning the reactors has meant that for many old ages at that place have been no programs to construct any more atomic reactors in the UK. Coal fired power workss have been associated with smog, acerb rain and planetary heating. They besides release metals such as quicksilver, arsenic, Be, Cd, lead and Se which can be deposited on dirt, in lakes and in watercourses where they become long term environmental pollutants. Gass associated with firing coal include C dioxide, the chief nursery gas blamed for planetary heating and clime alteration ; sulfur dioxide which can do acerb rain ; and N oxides which are responsible for ground-level ozone. Particulate affair, which includes dust, carbon black, nitrates and sulfates is besides emitted doing respiratory jobs and asthma onslaughts. Natural coal besides contains trace sums of radioactive U and Th. This is non a job until coal is burned bring forthing fly ash, which concentrates the original degrees of U and Th by a factor of 10. Surprisingly, ‘the fly ash emitted by a power works carries into the environing environment 100 times more radiation than a atomic power works bring forthing the same sum of energy ‘ . [ 10 ] The environmental jobs associated with coal have led to a push for ‘clean coal ‘ steps to restrict emanations and to capture the CO2. For illustration, fluke gas desulphurisation systems can take up 99 % of the sulfur dioxide. The procedure besides produces gypsum which is used in the building industry. Nitrogen oxides are controlled utilizing particular burners which cut down the O supply to the hottest portion of the burning chamber where the coal is burned. Electrostatic precipitators can take more than 99 % of the particulates from the fluke gas by making a charge on the atoms which are so attracted by aggregation home bases. Fabric filters and wet particulate scrubbers are besides used. As CO2 is a nursery gas the proposed method is to capture the gas and shop it underground before it can get away to the ambiance. Figure 3 shows an illustrations of how a CO2 gaining control system might be used.Key1. CO2 pumped into obsolete coal Fieldss displaces methane which can be used as fuel 2. Carbon dioxide can be pumped into and stored safely in saline aquifers 3. CO2 pumped into oil Fieldss helps keep force per unit area, doing extraction easier Figure 3 Options for informations gaining control and storage The construct of C gaining control and storage has been proven by little scale systems but commercially feasible large-scale systems have non yet been developed. Coal mines can be unsafe and soiled topographic points and unfastened dramatis personae excavation in peculiar can go forth an unpleasant landscape. Coal mineworkers can be affected by pneumonoconiosis, or black lung disease, and emphysema if they breathe in excessively much of the coal dust. Transporting coal by lorry and train from the mine to the power station causes pollution. As the older coal fired and atomic power Stationss reach the terminal of their utile lives, determinations will hold to be made about their replacing. Should atomic or coal be considered for the following coevals of power Stationss in the UK? In an ideal universe the reply would likely be no ; but in the existent universe the concerns of authoritiess are energy security and supplying a uninterrupted supply of electricity at a sensible monetary value. Therefore, it is likely that one or both will play a important portion in the proviso of base burden electricity for the foreseeable hereafter because feasible options are non yet available. The instance for atomic power must get down by sing the fact that installed safety systems have non prevented three major atomic accidents in the last 50 old ages. No 1 could give a 100 % confidence that a major catastrophe will non go on in the hereafter ; but the atomic industry has been scrutinised more than any other industry in history and hence the safety steps are as near to state-of-the-art as possible. Progresss in nanotechnology may bring forth better control and feeling devices to farther better safety steps. In recent old ages ‘while the agreements for storage have proved to be satisfactory and the installations have been operated without major jobs, it is by and large agreed that these agreements are interim, that is, they do non stand for a concluding and lasting solution ‘ . [ 12 ] However, work on atomic transubstantiation, that can potentially cut down the clip that the waste is unsafe from 1000s of old ages to possibly five hundred old ages, [ 8a ] , may do it more toothsome. Nanotechnology research into disassemblers may bring forth applications in atomic risky waste direction. Coal generated power is a good established engineering that people are familiar with. However, it has a repute for being a dirty industry that can be unsafe for its workers and bring forth a visually unpleasant environment. In recent old ages the clime alteration argument has intensified and coal, which produces the most greenhouse gases of the fossil fuels, has been targeted as a major cause of planetary heating. The efforts to clean up the industry will potentially cut down the job but will be dearly-won and may take many old ages to demo any betterments. One factor that may work in its favor is the recent discrediting of scientists look intoing clime alteration. Allegations were made that ‘climate scientists had doctored informations to show that worlds are responsible for planetary heating ‘ and ‘the universe ‘s most of import administration for supervising clime alteration claimed that the Himalayan glaciers would vanish by 2035 without the backup of peer-reviewed research ‘ . [ 11 ] This has allowed advocates of coal fired Stationss to propose that the instance for planetary heating has been overstated and that coal and other dodo fuelled power Stationss may be acceptable after all. China, India and other developing states are likely to be constructing 100s of coal fired power Stationss in the close hereafter. If the clime alteration anteroom has got it right it would look irresponsible for the UK to add to the job. Furthermore, a new coevals of atomic power Stationss would assist the UK authorities to run into its mark of cutting nursery gas emanations by 80 % by 2050. There is grounds that determinations are being made within authorities to unclutter the way for new atomic power Stationss. [ ] hypertext transfer protocol: //www.guardian.co.uk/environment/blog/2010/jul/27/decc-carbon-calculator } } . The trust on imported gas from some of the universe ‘s most unstable parts is considered unacceptable and favorable remarks associating to atomic power coevals have been made. The most recent grounds is EDF Energy uncovering programs to pass ?1billion in 2011 on new contracts and readying work for the Hinkley Point atomic power station in Somerset. [ ] { 13/02/11 Mail on Sunday Tom McGhie } After due consideration, I would give probationary support to a revitalized atomic industry in the UK working under the strictest of examination. I would trust that the major technological jobs with the handling of risky atomic waste will be solved in the close hereafter. Besides, if atomic power coevals receives more public credence, research into the fast breeder reactors and the long term end of power from atomic merger may have a encouragement. These developments would ease the waste job and do atomic power more sustainable in the long term.Appendix 1Table 1 Known recoverable resources of uranium [ 3a ] The top portion of the tabular array shows the â€Å" sensible assured resources † and â€Å" inferred resources, † at cost less than $ 130 per kilogram of U, as of 1 Jan 2005. These are the estimated resources in countries where geographic expedition has taken topographic point. There is besides 1.3 million dozenss of low uranium sitting about in reserves, a byproduct of old uranium activities.Appendix 2Source – Eurelectric hypertext transfer protocol: //www.mpoweruk.com/energy_efficiency.htm

Public Administration Case Study Example | Topics and Well Written Essays - 500 words - 1

Public Administration - Case Study Example study aimed at answering what are the contributions that leaders need to make in public organizations to motivate their workforce (Wright et al., 2012). The specific purpose of the study was to identify the methods through which leaders following transformational leadership style can use internal and external motivational factors to increase their employee’s focus and attention towards the mission of the organization. In order to conduct this study data was collected through a survey in which the respondents included different senior level managers in the public organization and the total size of those who were surveyed was more than 50,000 senior level managers (Wright et al., 2012). The survey was supplied with the help of the internet and the survey was posted on the website of the study. Out of those individuals who responded to the survey a total of 1,538 were considered as valid for the study (Wright et al., 2012). The majority of the respondents were male and they belonged to the White race and they had attained higher level education. The study was conducted with the help of a statistical tool called correlation and regression and the validity of the responses was analyzed through the statistical tool of Cronbach Alpha (Wright et al., 2012). With the help of the study the researchers identified that leaders who practice transformational leadership style can help in elevating worker’s motivation towards providing public services (Wright et al., 2012). The researchers even identified that this form of leadership provided employees with clearly and well defined goals. The third main finding of the study was that worker’s motivation towards providing public services and clearly defined roles are two important factors that attract employees towards the mission of the organization (Wright et al., 2012). Furthermore the researchers identified that leaders in public organizations that provide their followers with a vision, led by setting an example,

ANALYSIS OF TWO OPPOSITE LEGAL OPINIONS (FATWAS) ON THE SAME ISSUE Essay

ANALYSIS OF TWO OPPOSITE LEGAL OPINIONS (FATWAS) ON THE SAME ISSUE - Essay Example 15) presented to them for clarification by the faithful. Ali Khan (2006a, p. 202) refer to them as scholarly decrees which may have substantial explanations and reasoning behind them or be simply statements addressing the issue at hand (Cornell 2007, p. 154) as opinions. Cornell avers that such scholars extract their verdicts from the Quran, the Sunnah which is anything approved of by Prophet Mohammad, through creation of consensus among themselves or through the use of Ijtihad, which basically means personal, logical reasoning on the part of a scholar. Often times, different fatwas are issued on the same topic. The explanation for this may be that the each of the fatwas is offered with regard to different geographical or historical settings (Khan 2006b, p. 16). Christian Snouck (quoted in Petersen 1997, p. 11) asserts that another cause of the contradictions in fatwas is fictitious verdicts that are not requested by the laity addressing invented questions, mostly issued for rivalry purposes as illustrated abundance of various ideological standpoints in the twentieth century (Petersen 1997, p. 28). Notwithstanding the context, only one ruling can be right at a time (Khan 2006b, p. 17). In line with this argument, Dr. Sano Koutoub Moustapha (Different Fatwas, 2015), responding to a query on handling contradictory rulings, finds that differences are normal since scholars have differing methodology and principles. He notes that Islam does not compel following of Ijtihad, but that fatwas must be issued by qualified scholars. Muslims are allowed to choose opinions pertinent to them, with stronger foundations or exercise their own judgement. According to Dr. Moustapha, all verdicts are acceptable (Different Fatwas, 2015). Shaykh Muhammad Saalih al-Munajjid reiterates that only knowledgeable persons can give fatwas which should be based on a proper evidential foundation (Islamqa.info 2015). It is well established that some foods, for instance,

Management(importance of planning, organizational design challenges, Assignment

Management(importance of planning, organizational design challenges, henry ford-mass production) - Assignment Example As Thompson and Frank (129-130) point out, resource planning is compulsory for any organization that aims at surviving in the contemporary business environment. In any business system, organizational resources are scarce and proper planning is necessary to optimize their output. The management has role to plan on the allocation of the human and financial resources in the most convenient manner to maximize the output. To accomplish the stated objectives, planning will be necessary to guarantee that these objectives materialize. In the absence of planning, the organization will fail to achieve its goals, which is part of business failure. Hornby is one of the organizations that embarked on effective business planning to survive in the competitive toy industry (Thompson and Frank 140). The organization suffered from the forces of competition in the market until when it engaged in proper strategic planning. The organization set its goals, and planned on how to use its limited resources to attain its laid goals. Optimal utilization of resources and work planning ensured its survival. In this light, effective planning is a necessary competence for any organization. In the contemporary business environment, business design is the process of configuring structures, processes, systems and people practices in such a manner that all business strategies are accomplished. The process of business design is complex and managers should prepare to face challenges as they develop their strategic plan within the organizations. The changes evident in today’s business structures poses new challenges to the management team while implementing their design decisions. One of the challenges that face organization managers while conducting business design is complexity of organizational roles. In the organizations role, the managers aim at matching the employee with their most

Gulf Regional Legal Environment of Business Essay - 2

Gulf Regional Legal Environment of Business - Essay Example For example, Sadah (2010) has pointed out those countries like Oman lacks in proper legal framework which can not only protect domestic players but also attract foreign investors. Hence, it can be said that providing a stable legal framework to domestic and foreign companies is related to Oman’s growth and prosperity. McConnaughay (2001) has defined law as a structure and combination of principles which provide guidance to companies on how to do business and also takes care of the interest of investors. In Oman, Commercial Companies Law under the Royal Decree No. 4/1974 takes care of most of the business entities such as Joint-stock Companies, Limited Liability Companies (LLC), joint venture between partners etc (Morison Muscat, 2010). However, such an old prescription is not helpful for Oman to solve the entire pertinent and current day business problem. For example, the age old Royal Decree No. 4/1974 is not helpful to guide business operation of commercial companies which m ight or might not have principal operation in Oman. Another important thing is that, in last 20 years, rapid industrialization in Oman has increased interest of foreign investors to invest money in order to expand business in the country (Morison Muscat, 2010). ... Part 2 Research scholars such as Siviglia (1993), Fox (2009) and Christou (2009) have pointed out that, commercial agreement between countries is important facet of international trade policy for government of any country. Careful analysis of the work done by Fox (2009) shows that commercial agreement between Sultanate of Oman and any foreign Country is exposed to both advantages and disadvantages. Commercial agreement between Sultanate of Oman and international countries comes under the Royal Decree No. 102/94- FCIL and foreign capital investment policy (Morison Muscat, 2010). According to the law, foreign companies need to get license from Omani government in order to commence business in the country. Investors of foreign countries are allowed to invest in tourism, construction, infrastructure, technology or own share of Omani company. Commercial agreement between foreign countries and Oman also includes the clause that, foreign investors will be eligible for tax holidays if their service is found to be necessary to economic growth of Oman by the Council of Ministers (Morison Muscat, 2010). There are plenty of advantages associated with signing commercial agreement by Sultanate of Oman with international countries such as, foreign partners will invest additional fund to the Oman economy which will positively impact the gross domestic product growth of Oman, technological partnership between foreign companies and domestic players will ultimately increase the overall technological capacity of the Oman, foreign investors will create job opportunity by investing money in Oman which will significantly improve the labour market condition

Public Opinion (American Politics) Essay Example | Topics and Well Written Essays - 500 words

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Business Environment Assignment Example | Topics and Well Written Essays - 750 words

Business Environment - Assignment Example To meet their objectives and sustain the shareholders, a business may raise the dividend amount so as to offer satisfactory returns to this category of stakeholders. However, shareholders should not always expect huge returns; there is always an extent beyond a company may not go, depending on the economical status and market forces (Daphne, 2015, p.3). The objective of the government as one of the stakeholders is to ensure the operations of a business are ethically carried out and that taxation policies are adhered to. To meet this objective, an organisation must ensure that a business license is obtained before commencing its operations. It must observe regular and timely tax payment. However, higher taxation may lead to a downfall of business (Daphne, 2015, p.5). Government must, therefore, consider market structure and make its taxation as flexible as possible. The objectives of customers are sometimes very challenging to meet due to their compounded nature. Customers have put higher expectations on the product price, quality, quantity, taste, branding, taste and other related aspects of a product. A business owes customers all these duties. Depending on the level of competition and product differentiation, an organisation may not meet the exact needs of customers; one quality will always be missing. The very quality may be found in another product from a different organisation. Market structures are several interconnected factors that bind the seller, the buyers and the products. Normally, the type of market faced by a business firm will determine its decision on pricing and level of output. It should be noted that a business is never free to set the prices of its products; the pricing is always dependant of the preexisting forces in the market. It, thus, implies that the limit of profit is always a subject of the market structures (Ciliberto, 2009, p.180). The flexibility of a

Reading and Comprehension Essay Example for Free

Reading and Comprehension Essay Read 8 Secrets to a Knockout Business Presentation using the SQ3R method. Answer the following questions to assess how well you followed the SQ3R method, and whether it helped. Note: Your grade for the assignment will depend on the quality and honesty of your responses and not on how successful you felt you were. ? What was the main point of the written piece? ? What did each section deal with? ? What questions did you ask yourself as you were reading? ? How can you change your note taking skills for the future? ? What would you do to retain this information for later use? ? How might the SQ3R method help you improve your reading comprehension and retention skills? Gen/105 Week 7: Reading and Comprehension Project 1. The main point of this written piece was to tell the reader what the eight most successful secrets were to delivering a knockout presentation in your business affairs. A lot of people at companies just make boring PowerPoint slides and it has so much irrelevant information that the point of the meeting is masked by a weak presentation. This article shows what to do and how to make a great presentation. 2. Each section of this paper dealt with a new and exciting way to capture the attention of a viewer of your business slides. The writer states to â€Å"dig deep† by adding new information and giving more to the viewer. â€Å"Avoid Info overload† shows that too much information can be detrimental to a project, people can bored and wander off. In the section â€Å"Practice Delivery†, it talks about how to memorized your speech and practice what you are saying. This will avoid mistakes, mishaps and fumbling with words. Also, the writer says to â€Å"forget comedy†, by leaving the humor out the project is more professional and shows that you are serious. By â€Å"pick powerful props† shows your audience that memorable ideas and notions can be obtained by using props, so the audience can remember ideas and thoughts associated with the presentation. Another secret is to â€Å"minimize you†, this means take out information relating to you or the business, because people already know what this information is. It waste space and time, and people can get sidetracked. â€Å"Speak the Language† notes that speaking as you always do will help minimize confusions with acronyms and abbreviated words. Be professional but make sure everyone can understand what is been said. Last but not least, â€Å"simple slides† states that you should use slides in your presentation to highlight important information and key words, don’t let the slides overrun the presentation. 3. The questions that came to mind when I was reading was significant. They dealt with how to maximize information during presentations and how do I apply material that are useful in my projects. I don’t want to use unnecessary information that is irrelevant. I also asked myself if using pictures and props were a good idea. I found out that these two tools are necessary to keep the audience engaged in what you’re talking about. 4. I feel like that I have great note taking skills. I always note key words and phrases. If I have a long or difficult reading I always break it down in paragraphs and take notes on key sentences. I also use an outline format which helps greatly. It is almost like the article written in my own language so I can understand it better. I always use my notes to go over information instead of trying to re-read an entire article to find important facts. 5. I will use notes to retain this information for later use. My notes can be very well written as well as the reading, with the same information available. I always keep notes to look over for extra information and key points. 6. I think the SQ3R method does help my reading and comprehension skills improve. By skimming the article I mentally note key words and phrases. I can see how each paragraphs ends and if there are any vocabulary words noted. Noting questions is helpful as well. Keeping in mind question I would ask about the article will help me find an answer to it within the paper. I believe the method does help a lot especially when it comes to larger papers or article that I need to comprehend.

Impact of Culture on International Business

Impact of Culture on International Business Doing business on the international plane presents many challenges because of a variety of factors which differ from one market to the other. These differences are basically informed by the environment of the host country, which is often times different from that at home. One of the environmental factors that present such a challenge is culture. Culture can be defined as complex construct that embodies a peoples knowledge, morals, art, beliefs, customs, laws and other capabilities gathered by a community over time (Clifton, 2004). The culture of the host country strongly impacts on the performance of a firm that engages in international business. Notable aspects of culture central to the conduct of international business include the social structure, religion, language and education. G4S, a company that has established itself in international business has had its fair share of challenges in this area. Social structure has to do with how society is socially organized. It could be looked at from the individual-group dimension, or from the social stratification dimension. Some societies consider an individual the pillar of social organization (Emerson, 2007). This is the scenario G4S encountered when it entered the American and most Western markets. The challenge here was how to instill a sense of teamwork among employees. It was an uphill task for managers who had been socialized to believe in the superiority of teamwork, as individuals compete against each other for results. On the Japanese market however, the firm found that emphasis was on group, rather than individual performance. Though this is said to be the driving force behind the companys success in Japan, it is vilified for imbedding creativity, and is touted as a stumbling block to dynamism. This, indeed, is a challenge the firm has had to deal with. Social stratification has to do with placing members of society in certain classes. There are those in the lower, middle and upper classes. Many times, this is borne out of ones family background, income or occupation. Those from the lower class only hope to move from that class to the upper one through a process called social mobility, which is in most cases done through education and job opportunities. When opportunities for mobility are suffocated, there is likely to be conflict between the classes; and in the job situation, between management and employees. Some societies have room for social mobility, while others do not. A country like Britain has less social mobility (Hill Jain, 2008, p. 66, 67). As a result, there is always simmering tension between management and workers, which the firm has had to deal with from time to time. When industrial disputes become frequent, the firm finds doing business in the country quite expensive. Such a problem is not common in America, where social mobility is easy. G4S operates in countries with various religious persuasions, which have an effect on its operations. In predominantly Christian (protestant) countries such as Britain, America and most of Africa, the spirit of entrepreneurship has helped expand the companys operations and profitability. Protestantism advocates for hard work and creation of wealth for Gods glory, but abstinence from worldly pleasures. Since the resources earned from working cannot be spend on leisurely pursuits, the only other option is to reinvest it in expanding the business (Hill Jain, 2008, p. 70). The Christian ethic, which is a cultural issue, is supportive of the entrepreneurial (capitalist) mindset. Doing business in Islamic countries such as Saudi Arabia is rather tricky. In the first place, the Islamic culture frowns upon charging interest on loan. Doing business in such an environment has been very expensive. The fact that adherents of Islam do not work on Fridays goes against the practice in other countr ies, and managers found it difficult making adjustments. The Islamic culture also favors market based systems and when they suspect one is making exorbitant profits, however justified, the establishment begins putting sanctions in the companys ways. This has hindered the company from making maximum profits from its investment, which is the hallmark of the capitalist culture from where the company originates. There have also been problems of negative perception of the company because of the historical West-Islamic conflict, making the firms operations difficult. When tensions between the two sides run high, sometimes the companys property is destroyed, or its products and services shunned by customers. This reduces the companys profitability. Operations in China where Confucianism advocates for individual connections rather than the rule of law have also been problematic. Business ethics have not been adhered to, making the firm lose out on opportunities for lack of connections, refe rred to as Guanxi (Goodrich, 2005). G4S once lost case where a company that had breached a contract was left unpunished because one the companys top executives was a son to a leading politician. Though this would appear to be unethical in most Western countries, it is perfectly normal in China, as the company later came to learn. For the sake of survival, G4S has now been forced to recruit well-connected local executives, and to enter partnerships with local companys belonging to senior government officials. This is normal in order in China. Most of the countries in which G4S operates have diverse linguistic backgrounds. This has posed major problems, especially in Saudi Arabia, where most people speak Arabic. Expatriate managers without the knowledge of Arabic have found it very hard to communicate when marketing the companys products and services. This has forced them to attend Arabic classes so as to make them perform better. Most African countries with a multiplicity of languages also pose problems of multiple cultures, which call for extensive training on the part of managers for these regions. Formal education determines the quality of skill, values, norms and the general socialization of individuals. G4S has had problems operating in countries such as Somalia and Rwanda in Africa, which have no proper system of formal education. In most cases, the firm has had to rely on expatriates to fill top management positions. References Clifton, J. (2004). Culture and International Business. New York: Blackwell Publishers Ltd. Emerson, N. (2007). The Social Dimension of International Business. Beverly Hill: Sage Books. Goodrich, A. (2005). The Dynamics of Global Business. Chicago: Gift Book Publishers. Hill, C. W and Jain, A. K. (2008). International Business: Competing in the Global Marketplace. New Delhi. Tata McGraw-Hill Publishing Company Limited. Impact of Culture on International Business Impact of Culture on International Business In this essay I am going critically to evaluate the impact of culture on the International Business. Culture is a term which could be defined in many ways. All the people have different attitudes and perceptions so when being asked what is culture for them , the answer will always have different aspects. Despite the we all believe we have impulsive knowledge on what culture mean defining it is more complex. According to Kroeber and Kluckhohns research culture may be defined in more than 160 ways. Best culture descriptions that were found during the research are that culture is. Different aspects of culture help different people to find the best field for them. But theres a case when culture affects the whole society not only individuals. According to Francis Fukuyama the most crucial area of modern life in which culture exercises a direct influence on domestic well-being and international order is the economy. Although economic activity is inextricably linked with social and political life, there is a mistaken tendency (â‚ ¬Ã‚ ¦) to regard the economy as a facet of life with its own laws, separate from the rest of society. The comprehensive cultures impact on international business might be found in every international company as culture affects HRM , International marketing , supply chain , operations management , corporate strategies and especially way of doing business. On the other hand cultures influence may be found mainly in values , beliefs and behavior. We can simply view three cultural differences across values , beliefs and behavior (see Appendix 2) The main summary about culture we can make is that when comparing different cultures we can define 4 key assumptions. Cultures are not homogenous. Within every culture there are subcultures . For example the caste system in India, working class culture. Also place of residence. For example Basque people , French Canadian. Cultural heritage and its interpretation are very individual, so we cant assume that two people from one country will behave in similar way or to have common beliefs. Separation of cultural issues from economic and political is complex as all three factors interact to influence views and beliefs. Defining the degree of differences between cultures is not straightforward because recognition of differences is a subjective issue. As the level of international trade and travel increases cultures become increasingly associated and the cultural diffusion may alter the significance of national cultures. As we saw that culture influences beliefs , values and behavior , its likely that the culture affects also the management style. The variations of what authorizes the management are not different in black and white terms , because theres a cross-cultural understanding of the purpose of doing business and the nature of management task. However there are differences of emphasis , priority and understanding which may create a variety of styles and practice. In fact the differences can be found by separating countries in a cluster. According to Hofstedes Cultural Dimensions there are four kinds of them which are used in order to compare national cultures. Individualism versus collectivism Individual rights and freedoms are fundamental values in individualistic cultures.  Special emphasis is placed on personal career and remuneration.  Collectivistic cultures are built on a foundation of values: harmony between people in the group, the priority of group needs and interests.  Hofstede concludes that all rich countries are individualistic and poor collectivist.  In societies individualistic relationships can be planned and either party to terminate them if they replace them with a good offer from elsewhere.  In collectivist cultures are characterized by relationships of moral and emotional nature. Power Distance Each member of the organization defines different levels of owned by him and other members of the groups organizational status, prestige and level in the organizational hierarchy.  Various are the rights deriving from the hierarchical level.  Subordinates carry out the decisions of superiors in a different way.  Use categories: gender, inequality, privilege, social position, status, power, etc. podchineiie  Studies of Hofstede put Asian and South American countries together with Belgium, France, Italy and Spain in the group of countries with a high index of severity of hierarchical position.  Scandinavian countries and the U.S. have low values of this parametyr, Bulgaria is among the countries that are characterized by the greatest difference between managers and subordinates. Uncertainty avoidance There are societies in which the uncertainty of future worries people, and vice versa.  For those societies are characterized respectively high or low depending on the experts in solving problems as small or large mode of individual consciousness to deal with them.Societies that do not take the risk and fear of tomorrow, develop pluralism of opinions and are willing to deal with individual problems.  In other societies, people are fighting for the future, they are nervous and aggressive.  They feel threatened by the world around them because they avoid the risk.  Hence the characteristics of the crop in their respective organizations: subordinates seek clear instructions and managers, preferring more rules and laws.  Bulgaria is among the countries in which people feel moderately stressed, are more conservative beliefs and value safety. Masculinity v femininity G. Hofstede defines masculinity as the extent to which dominant values in society are considered aggressive, pursuing the goals by all means.  The orientation is towards money and possession of property.  Cultures with a feminine nature, appreciate the relationship between people, caring for others, overall quality of life.   Dimension masculinity femininity is important to determine the methods of reasoning in the job, the choice of approaches to solving nl most complex tasks of conflict resolution.In Table.  5.5.  reflected the consequences for organizations of prevailing masculinity or femininity in the national culture (adapt. 3, 5, 12, 15 and 18). Depending on national cultures are formed organizational value systems and behavior.  Large transnational corporations are constantly confronted with the problem of national cultures, assessed the compatibility of cultures, predict the development of their interaction and assign them (incorporate).   So for every businessperson that is going to deal for a first time with a specific country can easily to look at the clusters (see Appendix 3 , fig 1) and to get an idea whit what kind of culture hes facing and how to deal. These clusters show that theres a level of cultural attraction between groups of nations so its easier to make a general understanding of management practice. But there are danger s of making groupings of countries. The detail of how people behave in certain situations must be discovered by own experience and discussions with people who have already worked with the particular country. Although having an understanding of a nations characteristics at a good level is very useful in international business because in different parts of the world theres a different management styles and because each of the main business factors are affected by the culture and cultural differences. When a company is creating its international strategy , it should consider where and what is going to sell , also to evaluate if the product will be accepted , because the future of the products success depends on the cultural understanding of the people who are going to buy it. For example for a company selling pork meat will be impossible to sell in Islamic countries because of the religion restrictions. Also staff should be employed in a variety of adequacy in the foreign locations. So human resource management need to be sensitive to any cultural need that might to individual countries. Similarly if a company wants to establish overseas plants , the culture and cultural difference can easily affect the way of production and content and format of any financial reports produced to report the firms performance. Its important to look how culture affects the operations management , international marketing , human resource management and finance functions. Impact of culture on International Marketing Its clear that the cultural differences across the world offers not only challenges but also opportunities for the international marketing. When being on a business trip its interesting to face products and facts that might be regarded as strange . For example advertisements of well-known brands completely different than those ones at home , or even opening hours for shops. All of those simple facts are of a great importance for marketing managers and pose potential threats for them when developing a strategy. When a company which is going to expand overseas is developing its strategy there are four alternatives for it: selling the product without changes on international markets. modifying products for different countries or regions. developing new products for foreign markets. incorporating all differences in a single product and introducing a global product Having categorized cultural groupings and cultural characteristics , managers are able to seek new overseas markets to expand their firms , to sell more goods , and to raise profits. Even culture might be suggested as a tool for marketing segmentation because if the culture in the target country is similar to the culture in the existing markets , its a precondition that selling the product in the target country might be successful. Products sold on foreign markets are influenced by the local behavior, tastes, attitudes and traditions in each market. The Coca Cola Companys attempt to sell Diet  Coke product on the Japanese market was not successful because the Japanese do not  consider themselves overweight and Japanese women do not want to admit they are  dieters turning to products whose label specifies that. The company was forced to  change the product name in Coke Light, and the promotion emphasized keeping in  shape by consuming the product, and not losing weight. Goods intended for consumers are more likely to suffer changes because they need to be adopted to meet the customers expectation in the target market and to meet the economic conditions of it. There are many examples of international firms that adjust their products to meet the specific expectations of the overseas markets. For example, McDonalds was forced to remove their menus including pork and beef meat and to create menus especially for the Indian market. The company has also developed rice-based  menus in China, started selling beer in Germany, wine in France, and in Japan  the character Ronald McDonald was called Donald McDonald to be easier to  pronounce by the Japanese. Another cultural issue that is effecting the international business is the price because it needs to match exactly the level of economic development in the target country. McDonalds is an exact example of that. When McDonalds opened in India , the company wasnt forced only to remove the beef and pork menus but also to reduce the prices of all goods which were sold in the restaurants. But still despite the fall in prices recent statistics show that McDonalds in India raised their profits by 8,9%. Human Resource Management In every company the HRM Manager is in charge to care for recruiting and training staff , working methods and time. For every company dealing across the world , its very likely to have staff of mixed nationalities which could lead to cultural confounding. When recruiting staff , some cultures will apply more conducted approach. For example the approach will be based on accurate qualification for the job and also test in order to asses the potential ability of the candidates. Other cultures will act differently by applying more easygoing approach. For example this approach is based on education, personal recommendation or employer networks. A main concept that is also relevant to the HRM is Hofstedes concept of power distance. Its relevant because its related to mans attitudes to hierarchy and also the way in which this might be translated into different ranges of pay levels of the highest and the lowest in the company. For example in France which Hofstede defined in the Power Distance group , theres a great gap between lowest and highest paid employee while in contrast the more collectivist and low power distance countries the gap is much smaller. Finance In order a company to pursue its goals and objectives it must be ensured with sufficient funds. Also need to be monitored if funds are used efficiently and correctly , if financial performance is reported to then management and shareholders. These are the main functions of the finance within every business. But elements mainly influenced by culture are sources of finance and reporting practice. Sources that might be used for companies expanding vary between different countries , as sources reflect not only on the political economy of the countries but also on their state of economic and financial development. For example in countries as japan and Germany usual form of sourcing business is by having loan from a bank while in the USA and UK businesses rely more on raising money by selling equity shares on the stock market. In order to expand overseas , companies may choose to find the money from the host or home country or even from third country. For example, when McDonalds decided to open their first restaurant in Moscow in 1990 during the Soviet Union. The company has used a joint venture with the Moscow City Council. Despite all the funds came from the franchisor from Canada and the US headquarters , the deal was to pay to the City Council in order to be allowed to operate in Moscow. So the agreement reflected the Soviet/Russian political system where business and state a re closely connected. So its fair to say that the financial arrangements were partially influenced by culture. Similarly there isnt an unified approach for reporting financial results by annual reports. For example nations as Germany , Italy and France use continental approach and is heavily influenced by tax regulations. The reports information is designed to allow the tax authorities and government to compute and monitor the liability. While Australia , USA and UK use Anglo-Saxon approach. Its assumed that the shareholders are the main users and the information provided in the report allows them to asses the companys performance and their investments performance. These differences are of a great importance for international companies because when they enter the international market and build their branches they will be challenged to agree to the local terms and rules. Also the financial information from all the branches should be combined in addition to create consolidated accounts. Common practice for international companies is to create unified reporting system based on home countrys rules and terms. So then the international branches use this system in order to prepare their financial reports. After reports are finished then the local staff in the international branches reworks the reports in order to meet the local regulations. Appendix 1 shared patterns of behavior (Mead) ; Collective mental programming (Hofstede); A set of base assumptions shared solution to universal problemsâ‚ ¬Ã‚ ¦ handed down from one generation to the next ( Schein) ; The essential core of culture consists of traditional ideas and especially their attached values (Krober and Kluckhohn)

Effects of Foreign Direct Investment on Jordan

Effects of Foreign Direct Investment on Jordan Chapter 1: Introduction Problem background Foreign direct investment has become the major economic driver of globalisation, accounting for over half of all cross-border investments. for example, approximately $1 trillion in greenfield investment was announced by companies in 2007, creating about 3 million jobs in their overseas subsidiaries. Companies are rapidly globalising through FDI to serve new markets and customers, map out their value chains in the most efficient locations globally, and to access technological and natural resources. A government of another country may also decide to invest in other countries through the direct provision of grants to developing countries. Foreign direct investment is often used by multinational companies as a means of extending their manufacturing to countries abroad. Foreign direct investment by multinational firms is said to have grown tremendously over the last two decades even above trade flows. (Markusen and Venables, 1999). International economic activity increasingly involves foreign production and intra-firm trade by multinational firms and it is now estimated that approximately 30% of world trade is intra-firm. (Markusen and Venables, 1999). Despite the growth in FDI, Markusen and Venables (1999) suggest that we have a poor understanding of the ways in which direct investment is just a simple substitute for trade, as well as the ways in which it is something quite different. Countries often offer incentives to foreign investors in a bid to lure them to invest in domestic firms. These incentives come in the form of trade policy concessions, financial assistance and tax breaks. (Girma, 2001). For example, Girma (2001) notes that the British government provided the equivalent of $30,000 per employee to attract Samsung to North East England and $50,000 per employee to attract Siemens to Newcastle. (UNCTAD, 1996). This incentive packages are justified on the grounds that productivity gains would be accrue to domestic producers from knowledge externalities generated by foreign affiliates. (Smarzynska, 2002). Furthermore, Girma (2001) suggests that these incentive schemes have been justified on the grounds that the facilitate the creation of jobs, as well as regional development. It is often believed that there is a productivity gap between foreign owned firms and domestic firms and the attraction of foreign direct investment can help bridge this gap due to the potential for spillovers. Girma and Wakelin (2000) suggests that spillovers would have regional dimension for a number of reasons. Spillovers can result from the direct contacts with local suppliers and distributors. This may arise from upward and downward linkages which may be local in nature thus minimising transport costs and facilitating communication between the supplier/distributor and the Multinational firm. (Girma and Wakelin, 2000). In addition, multinationals provide training to employees which increases the turnover of labour thus creating another avenue for spillovers. (Haacker, 1999) cited by Girma and Wakelin (2000). (Girma, 2001). However, Smarzynska (2002) suggests that there is little conclusive evidence indicating that domestic firms benefit from foreign presence in their sector. It has also been suggested that multinational firms have an incentive to prevent information leakage that would improve the performance of their local competitors in the same industry but at the same time may want to transfer knowledge to local suppliers in other suppliers. Smarzynska (2002). As a result, spillover effects from foreign direct investment are more likely than not to take place through backward linkages, that is, through contacts between domestic suppliers of intermediate inputs and their multinational clients. Smarzynska (2002). One would reasonably expect foreign direct investment to have an impact on the economic growth of a country. Foreign direct investment is said to provide a number of benefits to the receiving country through technological transfers, knowledge transfers etc. for example, for example, Borensztein et al. (1998) employ a model of technology diffusion to show that the rate of economic growth of a backward country depends on the extent of adoption and implementation of new technologies that are already in use in leading countries. Carves (1974) had earlier suggested that foreign direct investment influenced host country conditions through two main channels. Firstly, foreign direct investment should result in technological transfers to host country firms. This should be so because multinational companies provide subsidiaries with an efficiency advantage which should indirectly generate spillover effects to other domestic firms irrespective of whether they are subsidiaries of the multinational company or not. Secondly, multinational presence could also have negative effects on domestic firms as this would result into an increased level of competition in the host country. As far back as the 1970s, many host country governments and some economists viewed multinational investment as detrimental to host economies’ welfare and development, creating monopoly situations that exported those economies and stifled local competition. (Markusen and Venebles, 1999). The view in the 1990s was however considerably different and more optimistic, suggesting that multinationals have important complementaries with local industry and may stimulate development in host economies. (Markusen and Venables, 1999). In the absence of any microeconomic imperfections, a small foreign direct investment (FDI) project will have no effect on host economy welfare, so if a case is to be made for gains and losses, it must rest on the possibility that FDI creates or interacts with distortions in the host economy. (Markusen and Venables, 1999). 1.2. Motivation of the study Jordan remains a major region of inward foreign direct investment. Studying the impact of foreign direct investment on Jordan’s economic growth can be justified for a number of reasons. FDI theory suggests that multinational firms have firm specific assets which imply that the may also have higher productivity than domestic firms as a result of the superior technological knowledge, access to international networks and management structure. (Girma, 2001). A company with high foreign direct investment is therefore expected to be capable of benefiting from a substantial increase in net exports which is a major determinant of economic growth. According to Girma (2001) the fact that multinational companies have higher levels of productivity growth indicates that the host country should enjoy two main benefits: (1) the host country should benefit from new production facilities or benefit from the rescue of failing firms in the case of acquisition, potentially raising output, employm ent and exports; (2) foreign firms should be unable to internalise their advantages fully which should enable domestic firms to benefit from spillovers. (Girma, 2001). The combined effects of these benefits should therefore result in high levels of economic growth. It is therefore essential to test these propositions using data on Jordan. Foreign direct investment has been carried out in many other countries mostly in the Western countries such as the United Kingdom, United States, Germany, China, etc. The literature seems to be lacking in terms of Jordan. With increasing growth in multinational activity and increase concern as to whether FDI contributes to the general welfare of an economy, it is the interest of this paper to understand whether FDI contributes to the economic growth of a country, making reference to Jordan as a case study. Most of the studies on foreign direct investment have focused on the spillover effects of FDI activity to domestic companies. In addition, most of the studies have been carried out using microeconomic analysis. This paper considers the problem from a macroeconomic perspective by studying the direct relationship between FDI activity and economic growth on Jordan. 1.3. Objectives of the Study. The objective of this study is to model the effects of foreign direct investment on Jordan by using aggregate macroeconomic data over the period 1976 to 2006. To isolate the effects of other macroeconomic variables on economic growth and to improve the overall significance of the model, the neoclassical growth model will be employed. 1.4 Significance of the Study. The study will serve as a yard stick for policy makers when designing macroeconomic policy in relation to incentives related to the attraction of foreign direct investment in Jordan, openness of the economy, designing monetary and fiscal policy in Jordan. The research will also serve as a guide for further research to students and researchers interested in studying the impact of foreign direct investment on the economic growth of Jordan. 1.5. Limitations of the Study. Chapter 2. Literature Review 2.1 Definition of Foreign Direct Investment. Foreign direct investment is defined as the process whereby a company in one country makes a physical investment to build a factory in another country. These include investments made to acquire lasting interest in enterprises operating outside the economy of the investing company. Foreign direct investment is often promoted by multinational companies when they decide to expand their manufacturing or businesses abroad. Foreign direct investment is also considered to be a diversification strategy pursued mostly by multinational companies which involves the purchased of assets, usually associated with manufacturing or distribution facilities, in another country. FDI is often regarded as the second stage of overseas involvement after agency or licensing agreements have been used to establish a market. Investors in such companies find it more appropriate to reinvest the earnings generated from foreign activities due to the difficulties entailed in the repatriation of profits, as well as t he differences in tax systems that may make it more efficient to retain earnings and reinvest overseas, than to bring them home. 2.2 Determinants of Foreign Direct Investment According to Lim (2008) citing Dunning (1996, p. 56) there are four types of motives behind the FDI activities of multinational firms. These include resource seeking, market seeking, efficiency seeking, and strategy asset capacity seeking. (Lim, 2008: p. 40). These are referred to by the UNCTAD as economic determinants. (Lim, 2008). A host country’s policy framework and business facilitation also plays an important role in determining MNCs’ FDI activities. These include the size of the domestic market, institutional and political environment of the host country, the number of distribution channels, the level of financial development, the taxation policy of the host country etc. According to James (2008) the level of financial development may affect the level of foreign direct investment. Accordingly, financial development acts as a mechanism in facilitating the adoption of new technologies in the domestic economy. (James, 2008). It has also been suggested that the build ing of distribution channels in the host country may also affect the level of foreign direct investment. (Stoian and Filipaios, 2008). This indicates that the more distribution channels a firm can build and the more easy it is to build these channels in the host country, the higher would be the likelihood that the multinational company will make an investment in the host country. Another important factor is the political environment of the host country. It has been suggested in the literature that there is a relationship between broad indices of socio-political instability and institutional quality, political freedom and democracy and FDI. (Kolstad and Vollanger, 2008). The political environment of the host country is therefore an important determinant of FDI. Conventional wisdom detects that high levels of political and social stability, high political freedom, high institutional quality, and high levels of democracy will facilitate the levels of FDI. On the contrary, a country tha t performs poorly on the latter indices of political and institutional factors runs the risk of attracting little or no FDI. The size of the domestic market also influences foreign direct investment. (James, 2008). The larger the size of the domestic market, the higher will be the level of FDI as multinational firms scramble to reap the benefits of economies of scale (economies of scale represent the advantages a firm enjoys because of the fact that it is operating on a large scale. Taxation policies both in the home and host countries may also affect the level of FDI. For example, Hartman (1981) suggests that since the repatriation of earnings to the home country investor and not earnings themselves form the source of the tax liability, the foreign source income should affect investment differently depending on the required transfers of funds within the firm. Consequently, in order to maximise after tax profits, a firm should finance its foreign investment out of foreign earnings t o the greatest extent possible. This further indicates that the required return on investment abroad increases at the point at which foreign investment just exhausts foreign earnings. (Hartman, 1981). Foreign direct investment is also determined by corporate governance. For example, Lien et al. (2005) provide evidence that the presence of a large number of supervisors is associated with FDI outside China, which is consistent with resource strategy views on corporate boards. They also find that family control and share ownership of domestic firms are associated with FDI strategy. There is also an observation of a negative relationship between foreign share ownership in Taiwanese foreign firms and FDI decisions. (Lien et al., 2005). Wu and Radbone (2005) observe from Shangai data that different local factors determine the location of different patterns of FDI. For example, Wu and Radbone (2005) suggests that the development characteristic of urban districts is an important determinant of the location of service and manufacturing FDI. They provide evidence suggesting that service FDI tends to aggregate in the areas that already have a high density of service activities whereas manufacturing FDI prefers to locate in central government-designated areas where incentives and preferential treatment are present. (Wu and Radbone, 2005). 2.3. Foreign Direct Investment Around the world A number of studies have been carried out on FDI in different countries across the globe. These include, the United Kingdom, the United States, Germany, France, Developing countries, emerging markets such as China, India and Brazil. 2.3.1 FDI in the UK. It has been suggested that the United Kingdom is the most successful national location for new foreign manufacturing investment entering the European Union. (Hill and Munday, 1994) cited by Driffield and Munday (1998). For example, the United Kingdom attracted net inward foreign direct investment of approximately  £27.2billion between 1987 and 1993 and estimates show that foreign manufacturing firms in the UK employ more that 78,000 people, and account for more that one quarter of UK manufacturing net output sales. (Driffield and Munday, 1998). Major contributors to foreign direct investment in the UK include companies from the United States, Germany, France and Japan and the major vehicle for this inward foreign direct investment is the acquisition of domestic UK companies. (Child et al., 2000). Girma (2001) investigating the presence of productivity or wage gap between foreign and domestic firms in the UK, as well as whether the presence of foreign firms in a sector raises the productivity of domestic firms provide evidence that foreign firms achieve greater productivity that domestic firms and pay higher wages. There is no evidence of intra-industry spillovers. (Girma, 2001). The findings from this study are inconsistent with an earlier study by Girma and Wakelin (2000) which suggests that domestic firms gain from the presence of multinational firms in the same sector and region, but loose out if the firms are located in a different region but the same sector. In addition Girma and Wakelin (2000) suggest that spillover e ffects are also influenced by the characteristics of the region. For example, less developed regions are found to gain less from spillovers than other regions, sectors with high levels of competition gain more, and sectors with low technological gap between foreign and domestic firms benefit from higher spillovers. (Girma and Wakelin, 2000). Table 1 below shows the trend of direct investment into the UK between 1986-95. Table 2.1.: Trend of direct investment into the UK 1986-1995 Source: Child et al. (2000). It can be observed that the USA remains the major contributor of FDI to the UK as observed from its increasing trend of FDI to the UK over the period 1986 to 1995. One can also observe that Japan has also been a major contributor but the FDI from Japan to the UK in the years to March 1993/95 witnessed a significant drop from  £1,085.00million in the years to March 1990/93 to  £109.1million. Germany has also been a major contributor with an increasing trend of FDI to the UK. France has been contributing the least among the four countries but the trend increased from  £59.2million in the years to March 1992/93 to  £1,188.2million in the years to March 1994/95. One can also observe that these four countries accounted for the highest proportion of FDI to the UK over the proportion ranging from approximately 73.0% ro 81%. Their share of FDI however witnessed a declining trend between the period 1986/7 and 1992/3. Their share of FDI to the UK again rose from 70.8% in 1992/3 to 80.9 % in 1994/5. Driffield and Munday (1998) observed whether the extent to which foreign direct investment in selected UK manufacturers has an impact on the report profit of domestic firms. The evidence suggests that in addition to having an impact on domestic market share, entry by foreign firms also has an impact on the domestic cost conditions which leads to a high probability that the profits of the domestic firms may be reduced. 2.3.2 Foreign Direct Investment in the USA. 2.3.3 Foreign Direct Investment in Asia 2.3.4 South America 2.2.5 FDI in the Euro Area. 2.4 Foreign Direct Investment in Jordan. Jordan falls among the countries classified by the United Nations Conference on Trade and Development (UNCTAD) as â€Å"front-runners†. These include countries with high FDI potential and performance. (UNCTAD, 2008). Apart from Jordan, other countries classified as front-runners include Azerbaijan, Bahamas, Bahrain, Belgium, Botswana, Brunei Darussalam, Belgium, etc. (UNCTAD, 2008). For example, Jordan ranked number 7 in the 2004-2006 FDI performance index of the UNCTAD. This marked an improvement based on the 2003-2005 FDI performance index which ranked Jordan 19th. (UNCTAD, 2008). 2.5 Literature Review There has been a lot of studies ob how foreign direct investment affects the economic growth of a country. However, most of the studies have focused their attention of firm level data using a small sample of firms to test their hypothesis and later on generalise results to the country as a whole. In addition, most of these studies have focused on how foreign direct investment increase productivity growth with particular emphasis on the marginal physical products of factor inputs such as labour and capital. A number of studies have been carried out on foreign direct investment ranging from the determinants o foreign direct investment, impact of foreign direct investment on economic growth, foreign exchange rates and foreign direct investment, taxation and foreign direct investment, spill over effects of foreign direct investment, etc. In this section of the paper a number of these studies will be reviewed so as to see where there are still gaps in the literature. As concerns the deter minants of FDI, Kolstad and Villianger (2008) employs firm level FDI data from 57 countries over the period 1989 to 2000, to examine the host country determinants of FDI flows in services as a whole, and in the major service industries. Their results suggest that institutional quality and democracy are more important for FDI in services than general investment risk or political stability. Specifically Kolstad and Villanger (2008) observe that democracy affects FDI to developing countries only, indicating that the absence of democracy is detrimental to investment below a certain treshhold. Consistent with the observation that many services are non-tradable, Kolstad and Villager observe that service FDI is market-seeking, and unaffected by trade openness. Stoain and Filipaios (2008) suggest that Greek firms invest primarily in similar countries with small market size, and open economies. High bureaucratic quality and rule of law are also found to be essential determinants of the FDI d ecisions of Greek firms while the existence of high corruption serves as a deterrent to FDI. (Stoain and Filipaios, 2008). James (2008) using data As concerns taxation, Hartman (1981) suggests that since the repatriation of earnings to the home country investor and not earnings themselves form the source of the tax liability, the foreign source income should affect investment differently depending on the required transfers of funds within the firm. Consequently, in order to maximise after tax profits, a firm should finance its foreign investment out of foreign earnings to the greatest extent possible. This further indicates that the required return on investment abroad increases at the point at which foreign investment just exhausts foreign earnings. Chapter 3. Research Methodology and Data. In this chapter, the methodology, as well as the data used to achieve the research aims and objectives would be discussed. Methodology is very important as it may affect the results of the study. It is therefore appropriate to discuss the methods properly since it will serve as a plan that would be referred to when completing each step in the latter part of the study. Data is very important especially the source from which it is obtained as some data sources tend to be unreliable while others are reliable. Relevant data must also be used in the study so as to ensure that the results are not biased. 3.1 Methodology The research method appropriate for this study is a quantitative research approach. Unlike most of the studies on FDI that have often used firm level data, this firm is going to use aggregate macroeconomic data to achieve its objective. The study aims at analysing how economic growth in Jordan is affected by inward foreign direct investment into the country. The appropriate way to achieve this is to establish a relationship between economic growth and inward foreign direct investment and then determine whether this relationship positive or negative and whether the relationship is significant. The significance will be done by carrying out t-tests on the coefficients that will be obtained by running the regressions. To achieve this, a regression model would be used to model the relationship between FDI and economic growth. To isolate the effects of other variables, and to improve the significance of the model, it is necessary to include other variables in the model. According to the neoclassical growth model, economic growth depends on a number of factors. These include domestic investments, population growth, which can be proxied by the labour force, foreign direct investment, development of the banking system, openness of the economy and education proxied by the expenditure on education and technology proxied by capital formation. Based on the above discussion, we can write the following growth model for Jordan. If we assume that economic growth is determined solely by FDI we can write the following growth model. (1) Where measures the annual growth in GDP per capita in percentage terms, represents a measure of the growth in per capita GDP not accounted for by fluctuations in the net inflow of FDI, is a parameter that measures the sensitivity of per capita GDP to changes in the net inflow of FDI, is the change in the net inflow of foreign direct investment to Jordan in year t, the subscripts t and j represent Jordan and time respectively, is a serially uncorrelated error term, which is assumed to have an expected value of zero. It measures the growth in per capita GDP that is neither accounted for by changes in FDI nor. The overall significance of the above model would be tested by calculating the R-square and testing its significance. The R-square is given by: (2) where RSS and TSS represent the regression sum of squares and total sum of squares respectively. If the R-square is below 50% this would indicate that changes in FDI to Jordan do not properly capture changes in per capita GDP indicating that model 1 is not a good model for the data. In that case we would have to include other macroeconomic variables into the model to improve on its overall significance. These variables include among others: interest rates, openness of the economy, domestic investments, population growth, education, technological development, etc. Taking this into consideration we can now write the following model: (3) where and remain as earlier defined, , , , , measure the sensitivity of movements in the per capita GDP growth to changes in banking sector development, government expenditure on goods and services, trade and net exports. The banking sector development is measured by using the domestic credit provided by the banking sector as a percentage of GDP. , , , and represent the change in FDI as a percentage of GDP for Jordan in year t, change in the banking sector development as a percentage of GDP for Jordan in year t, change in government expenditure as a percentage of GDP for Jordan in year t, change in trade as a percentage of GDP for Jordan in year t and change in net exports as a percentage of GDP for Jordan in year t, respectively. represents a serially uncorrelated random error term with zero expected value. Model 3 will also be estimated using ordinary least squares (OLS) regression and the significance of the coefficients will be tested using t-tests. The relationship between per capita GDP and economic FDI will also be explored. 3.1 Description of Data The data used in this study is obtained from the Economic and Social Development Service (ESDS) database, which reports world bank data on various economic growth indicators include GDP growth, per capita GDP growth, growth in exports, interest rates, consumer price index, inflation, expenditure on primary, secondary tertiary education, imports, exports, inward foreign direct investment, outward foreign direct investment, etc. Data on domestic credit provided by the banking sector as a percentage of GDP, exports of goods and services as a percentage of GDP, etc. The data is analysed using trend analysis and regression analysis. Trend analysis enables us to observe how the variables of interest have moved over the period under study. The period chosen for the study is 1976 to 2006. This spans over 30 years and enables us to observe how changes have taken place over the years. Trend analysis is however limited in that it cannot tell us which variables depend on which. We therefore turn to regression analysis, which enables us to study the relationship between variables and test for the significance of this relationship. We will therefore use regression analysis to determine how economic growth in Jordan is dependent on a number of growth determinants or indicators including banking sector development, foreign direct investment, population growth, government expenditure, gross capital formation, inflation, etc. Chapter 4. Data Presentation and Analysis 4.1 Trend Analysis. Figure 1: Jordan FDI net Inflows (% of GDP) and GDP per Capita Growth (Annual %) 1976-2006. The figure above shows the Jordan’s FDI net inflows as a percentage of GDP over the period 1976 to 2006. Figure also shows the annual percentage GDP per Capita growth over the period 1976-2006. One can observe a constant trend in the GDP FDI net inflows as a percentage of GDP over the 20 year period 1976 to 1996. As from 1996, the FDI net inflows as a percentage of GDP took an upward turn and has been on the rise since then with very slight fluctuations. The FDI rose from a low of approximately 2.0% in 2004 to approximately 20% in 2006. This indicates that Jordan has witnessed significant growth in the net inflow of FDI over the last 10 years. The annual GDP per Capi

Germ Line Therapy :: Genetics Science Genes Papers

Germ Line Therapy When I was a student in elementary school I was first told about genetics. I was told that traits are passed from parents to offspring and that each parent contributes equally. Someday, I was told, parents will be able to go down to the corner drug store and pick out what kind of baby they want. They could pick things like blue eyes, high intelligence and could even pick out the sex of their child. At the time I was being told this I believed that I would see it in my lifetime. I expected that by the time I was having children I would be able to pick their traits. I was especially excited to think that my children would not inherit my genetic disease. I wasn’t quite sure how all of this would work, but I was curious to find out. As I progressed in my scholastic career I went on to learn more about genetics. I finally decided that genetics was the field of study that I wished to pursue in college. Once in college I learned that determining your child’s traits was not as easy as going down to the corner drug store and taking a pill, as I had imagined when I was a child. In fact determining most traits, such as eye and hair color was probably not even in the foreseeable future. What was involved I couldn’t even begin to understand as a freshman in college. The more I understood about molecular biology, the less feasible trait determination seemed. Then along came Dolly, the cloned sheep. For some time scientists have been pursuing the idea of germ line therapy. Germ line therapy is essentially alterations made to the germ cells. Germ cells are eggs, sperm and early embryos (Henzig 1998). Any manipulation to the germ line would be transferred to future generations. Any corrections made at this stage would not need to be made again in that person’s descendants. Traditional gene therapy on adult subjects is called somatic cell therapy. This type of gene therapy must be repeated for each affected person in succeeding generations (Svitil 1998). Dolly was an important discovery because she was the first animal to be created from an adult differentiated cell. This cloning technique made germ line research much easier. Adult cells are more abundant than embryonic cells, and there should be no objection to doing research on differentiated cells from an adult donor.

Analysis of Donahues Sister from Thom Gunn’s The Passages of Joy Essay

  Ã‚  Ã‚   Thom Gunn, an English poet who has spent most of his life living in the United States, is a member of what has come to be called the "Movement". Members of the Movement "rejected what seemed to them the Romantic excesses of the New Apocalypse (whose most prominent member was Dylan Thomas), and. . .were equally dissatisfied with the modernist revolution led by [Ezra] Pound and [T.S.] Eliot" (Ellmann and O’Clair 1335). Gunn has criticized modernists for "strengthen[ing] the images [in their poetry] while...banishing [the] concepts" (Qtd. in Ellmann and O’Clair 1335). Members of the Movement "sought greater concreteness and a less high-flown diction for poetry" (Ellmann and O’Clair 1335).   Ã‚  Ã‚   Thom Gunn is known for writing poems that are not only concrete, but that can also be thought of as quite risky. Gunn has never been a cautious poet (Ellmann and O’Clair 1335), instead choosing to deal with subjects that are very "real," and in some cases very controversial. Gunn confronts the issue of alcoholism and its effects, not only on the alcoholics, but also on those who care about them, in his poem "Donahue’s Sister," which was published in 1982 as part of a book of poems entitled The Passages of Joy.   Ã‚  Ã‚   "Donahue’s Sister" begins with the two characters, a man and a woman (presumably Donahue and his sister), encountering each other at the head of the stairs. The first two lines read, "She comes level with him at / the head of the stairs," and indicate a sense of competition and tension between the two people. Immediately, it is apparent that there is a power struggle going on between the man and the woman. At this point, the reader has not been told the source of the competition between the characters, but there is a sense ... ...poetry is not intellectual... rather, it explores concrete reality in a sensuous manner" (Parini 138). Gunn paints a colorful and all-too-believable picture of the effects of alcoholism. He does not attempt to pass judgment, though. He does not condemn the alcoholic, or glorify the man who tries to help her. He simply shows us an honest depiction of alcoholism, and allows us as readers to make our own moral judgments. Works Cited Ellmann, Richard and Robert O’Clair, eds.   The Norton Anthology of Modern Poetry.   2nd ed.   New York: W.W. Norton, 1988. Giles, Paul.   â€Å"Landscapes of repetition: the self-parodic nature of Thom Gunn’s later poetry.†Ã‚   Critical Quarterly 29.2 (1987): 85-99. Parini, Jay.   â€Å"Rule and Energy: The Poetry of Thom Gunn.†Ã‚   The Massachusetts Review 23 (1982): 134-151. Sanborn, Patricia F.   Existentialism.   New York: Pegasus, 1968.

Teaching Ethics

School for scandal? Business schools turn their attention to ethics education This case examines the role of the business school in encouraging corruption in business, and looks at the potential impacts that business ethics training might have on students. It offers the opportunity to explore the significance of the individual and their education and experience for understanding ethical decision-making. It also provides a context for investigating the specific role, purpose, and impact of business ethics courses on business behaviour.When it turns out that the key figures in some of the most infamous cases of fraud and corruption in business are alumni from leading business schools, it is perhaps not surprising that the business schools themselves might come in for some criticism. After all, if people like Andrew Fastow, the convicted chief financial officer at Enron, or his boss Jeffrey Skilling, could have got MBAs from two of America’s premier business schools (Northwestern and Harvard, respectively) and , then it is inevitable that questions will be raised about what kinds of principles and practices business school students are being taught.In the last few years, a number of business gurus and commentators have publicly condemned business schools in general, and MBA programmes in particular, for their perpetuation of ‘misguided’ amoral theories and techniques, and the lack of attention to ethics in the curriculum.For example, Henry Mintzberg, the Canadian management expert has famously condemned the MBA model, suggesting that it ‘trains the wrong people in the wrong ways with the wrong consequences’, whilst Sumantra Ghoshal, the late London Business School professor has argued that the ‘worst excesses of recent management practices have their roots in a set of ideas that have emerged from business-school academics over the last 30 years. Ghoshal’s ire is directed to typical theories taught at business schools s uch as agency theory and Porter’s ‘5 forces’ model, which he claims perpetuate an idea that everyone is self-interested, managers cannot be trusted, business is a zero-sum game, and shareholder value is the only legitimate aim of business. The perpetuation of such assumptions, he suggests, leaves business school students devoid of any sense of moral responsibility. These criticisms have received a lot of attention in academic debates, but have also been readily recounted in the media and the business community.For instance The Economist ran a 2005 article headlined ‘Business schools stand accused of being responsible for much that is wrong with corporate management today’ which brought the arguments from Ghoshal, Mintzberg, and others to a wider audience – albeit in a context where the magazine rather predictably mounted a strong defence. After all, as The Economist argued, there are plenty of examples of corporate crooks who have not had a bu siness school education, so there are clearly other aspects to consider too.Nevertheless, whatever else the debate has done, it has certainly helped refocus the attention of business schools on their curricula, and especially on the provision of courses on ethics and social responsibility. At one level, this debate is simply about whether more business schools should be encouraged to introduce such courses into the curriculum. Whilst some schools have long included ethics in their curricula, others have tended to focus more on areas such as strategy, innovation, marketing and finance, whilst others have even dropped ethics courses due to low enrolments or political manoeuvring by sceptical colleagues.As one Wall Street Journal article put it, ‘MBA students and professors bristle at ethics requirements. Some faculty members resent being forced to squeeze ethics lessons into an already jam-packed syllabus, while students grumble that ethics classes tend to be preachy and philoso phical. ’ In this context, the evidence on the scale of ethics teaching is revealing. A recent survey of US schools found that 34 per cent required an ethics course at undergraduate level whilst only 25 per cent did so on MBA degrees.In Europe, the figures are if anything a little lower for compulsory courses, but more than 50 per cent of business schools report having an optional module on ethics or responsibility at undergraduate level and more than 30 per cent at masters level. Essentially, though, most business students can still complete a degree having had hardly any exposure to these subjects in the classroom – a situation that some are now trying to change. One development comes from the US, where a long running campaign by business ethics professors has been trying to make courses on ethics and responsibility compulsory for business students.Over 200 professors offered support to the campaign, but the AACSB (the body responsible for accrediting business degree programmes) appears, so far, to be unconvinced. A recent redraft of their guidelines for accreditation did not bow to the campaigners’ demands, and business ethics remains outside of their list of accredited subjects. Diane Swanson and Bill Frederick, the campaign leaders responded by condemning the AACSB’s arguments for excluding ethics as ‘desperate and out of date against the backdrop of unprecedented corporate scandals, increased public distrust of business, and a virtual sea change in corporate governance. However, some leading schools have moved towards greater attention to ethics. Harvard Business School, for instance, introduced a compulsory course on ‘Leadership and Corporate Accountability’ for all first year students in 2004 – a development that the school claimed represented ‘the most far-reaching course we’ve ever introduced on this subject’. In Europe, the situation is also changing, and in fact there appears to be significantly more support than in the US from European accrediting bodies.The Association of MBAs for example, has issued new criteria for the accreditation of MBA programmes that stipulate that the curriculum ‘should pay attention to ethical and social issues’, while the European Foundation for Management Development (EFMD) is also considering ways to integrate CSR into its EQUIS accreditation. New academic departments and centres have also sprung up in universities to lead ethics and responsibility teaching, such as the Business and Society Management department at Rotterdam School of Management and the International Centre for Corporate Social Responsibility in Nottingham University Business School.Whilst there is still a long way to go before schools successfully infuse ethics education across all of their courses, such developments certainly point to an increased emphasis over the past decade. Ethics and corporate responsibility feature far more prominently in the prospectuses of business schools than they did even a few years ago. Questions remain though about how ethics should best be integrated into the curriculum, and even whether exposure to the subject really has a positive effect on the decisions made by managers.While some maintain that a stand alone course on ethics is necessary to develop a suitable understanding of the subject and to consolidate its importance on the curriculum, others argue that this raises the prospects of generating an ‘ethics ghetto’ unconnected to mainstream business subjects such as finance and marketing. And the jury is still out on just how much of an effect any form of ethics training is likely to have on individuals. Various objections have been raised over the years, including the suggestion that students’ morality is already fixed and cannot be improved, and the accusations that ethics teaching is abstract, mbiguous, subjective, and little more than indoctrination from self-r ighteous ideologues. Of course, the extent to which some of these accusations are true will vary from course to course, and on the goals of any specific programme. In the main, evidence suggests that courses are rather better at enhancing students’ recognition of ethical issues, stimulating their moral imagination, and developing their analytical skills rather than improving students’ moral development or changing their values.As one business ethics professor puts it, ‘I do not want to teach moral standards; I want to teach a method of moral reasoning through complex issues so that students can apply the moral standards they have. ’ This highlights another growing debate among business ethics professors about the very purpose of business ethics education – and even what a business ethics course should consist of. Whilst one camp retains belief in the established practice of teaching moral philosophy to develop better normative thinking among student s, other camps have started to emerge.Some business school professors see more need to focus on practical management concerns, such as managing the corporate reputation or preventing accounting fraud, whilst others point to the need to understand ethics within wider social, political, and economic structures. One recent business ethics textbook (by Jones et al. 2005) was even introduced by the authors with an admission that they were ‘not particularly fond of business ethics’ because ‘business ethics in its present form is at best window dressing and a worst a calculated lie’!Ultimately then, developments in the field of business ethics education suggests that business schools and accreditation bodies may be beginning to take the subject more seriously, especially in Europe where something of a momentum appears to be building. However, the future direction of business ethics remains in some doubt. Not only will its integration into the curriculum remain pro blematic for some time yet, but as the subject expands and develops, the approach to teaching business ethics will probably shift quite considerably into new conceptual territory.Whatever the outcome, business ethics will have to go a long way before it presents a completely convincing antidote to corporate wrongdoing, and misconduct in the workplace. Questions 1. What are the main factors encouraging business ethics education and what are the main barriers to its further development and expansion? 2. To what extent can business education cause or prevent ethical infractions in business? Give arguments for and against. 3. Given the importance of situational factors in shaping ethical decision-making, what are the limitations posed by business ethics courses that focus on individual students?How would you design a course to focus primarily on situational issues? 4. Consider the aims and approach of the business ethics course that you are currently studying. What are these, and how ef fective is the approach for achieving these aims? What would you like to see done differently? Sources Alsop, R. 2005. At MBA programs, teaching ethics poses its own dilemmas. Wall Street Journal, 12 April. wsj. com. Boston Globe. 2003. Harvard raises its hand on ethics. Boston Globe, 30 December. Ghoshal, S. 2003.Business schools share the blame for Enron. Financial Times, 18 July. Ghoshal, S. 2005. Bad management theories are destroying good management practices. Academy of Management Learning and Education, 4 (1): 75–91. Jones, C. , Parker, M. , and ten Bos, R. 2005. For business ethics. London: Routledge. Lacy, P. 2005. From the margins to the mainstream: corporate responsibility and the challenge facing business and business schools. Business Leadership Review, 1 (2) (April): 3. Matten, D. and Moon, J. 2004.Corporate social responsibility in Europe. Journal of Business Ethics, 54: 323–37. McDonald, G. M. and Donleavy, G. D. 1995. Objections to the teaching of busi ness ethics. Journal of Business Ethics, 14: 839–53. Mintzberg, H. 2004. Managers not MBAs: a hard look at the soft practice of managing and management development. Harlow: FT Prentice Hall. Swanson, D. and Frederick, W. 2005. Campaign AACSB: status report, January. www. pitt. edu/~rorst6/sim/aacsb. The Economist. 2005. Business schools, bad for business. The Economist, 17 February. Teaching Ethics School for scandal? Business schools turn their attention to ethics education This case examines the role of the business school in encouraging corruption in business, and looks at the potential impacts that business ethics training might have on students. It offers the opportunity to explore the significance of the individual and their education and experience for understanding ethical decision-making. It also provides a context for investigating the specific role, purpose, and impact of business ethics courses on business behaviour.When it turns out that the key figures in some of the most infamous cases of fraud and corruption in business are alumni from leading business schools, it is perhaps not surprising that the business schools themselves might come in for some criticism. After all, if people like Andrew Fastow, the convicted chief financial officer at Enron, or his boss Jeffrey Skilling, could have got MBAs from two of America’s premier business schools (Northwestern and Harvard, respectively) and , then it is inevitable that questions will be raised about what kinds of principles and practices business school students are being taught.In the last few years, a number of business gurus and commentators have publicly condemned business schools in general, and MBA programmes in particular, for their perpetuation of ‘misguided’ amoral theories and techniques, and the lack of attention to ethics in the curriculum.For example, Henry Mintzberg, the Canadian management expert has famously condemned the MBA model, suggesting that it ‘trains the wrong people in the wrong ways with the wrong consequences’, whilst Sumantra Ghoshal, the late London Business School professor has argued that the ‘worst excesses of recent management practices have their roots in a set of ideas that have emerged from business-school academics over the last 30 years. Ghoshal’s ire is directed to typical theories taught at business schools s uch as agency theory and Porter’s ‘5 forces’ model, which he claims perpetuate an idea that everyone is self-interested, managers cannot be trusted, business is a zero-sum game, and shareholder value is the only legitimate aim of business. The perpetuation of such assumptions, he suggests, leaves business school students devoid of any sense of moral responsibility. These criticisms have received a lot of attention in academic debates, but have also been readily recounted in the media and the business community.For instance The Economist ran a 2005 article headlined ‘Business schools stand accused of being responsible for much that is wrong with corporate management today’ which brought the arguments from Ghoshal, Mintzberg, and others to a wider audience – albeit in a context where the magazine rather predictably mounted a strong defence. After all, as The Economist argued, there are plenty of examples of corporate crooks who have not had a bu siness school education, so there are clearly other aspects to consider too.Nevertheless, whatever else the debate has done, it has certainly helped refocus the attention of business schools on their curricula, and especially on the provision of courses on ethics and social responsibility. At one level, this debate is simply about whether more business schools should be encouraged to introduce such courses into the curriculum. Whilst some schools have long included ethics in their curricula, others have tended to focus more on areas such as strategy, innovation, marketing and finance, whilst others have even dropped ethics courses due to low enrolments or political manoeuvring by sceptical colleagues.As one Wall Street Journal article put it, ‘MBA students and professors bristle at ethics requirements. Some faculty members resent being forced to squeeze ethics lessons into an already jam-packed syllabus, while students grumble that ethics classes tend to be preachy and philoso phical. ’ In this context, the evidence on the scale of ethics teaching is revealing. A recent survey of US schools found that 34 per cent required an ethics course at undergraduate level whilst only 25 per cent did so on MBA degrees.In Europe, the figures are if anything a little lower for compulsory courses, but more than 50 per cent of business schools report having an optional module on ethics or responsibility at undergraduate level and more than 30 per cent at masters level. Essentially, though, most business students can still complete a degree having had hardly any exposure to these subjects in the classroom – a situation that some are now trying to change. One development comes from the US, where a long running campaign by business ethics professors has been trying to make courses on ethics and responsibility compulsory for business students.Over 200 professors offered support to the campaign, but the AACSB (the body responsible for accrediting business degree programmes) appears, so far, to be unconvinced. A recent redraft of their guidelines for accreditation did not bow to the campaigners’ demands, and business ethics remains outside of their list of accredited subjects. Diane Swanson and Bill Frederick, the campaign leaders responded by condemning the AACSB’s arguments for excluding ethics as ‘desperate and out of date against the backdrop of unprecedented corporate scandals, increased public distrust of business, and a virtual sea change in corporate governance. However, some leading schools have moved towards greater attention to ethics. Harvard Business School, for instance, introduced a compulsory course on ‘Leadership and Corporate Accountability’ for all first year students in 2004 – a development that the school claimed represented ‘the most far-reaching course we’ve ever introduced on this subject’. In Europe, the situation is also changing, and in fact there appears to be significantly more support than in the US from European accrediting bodies.The Association of MBAs for example, has issued new criteria for the accreditation of MBA programmes that stipulate that the curriculum ‘should pay attention to ethical and social issues’, while the European Foundation for Management Development (EFMD) is also considering ways to integrate CSR into its EQUIS accreditation. New academic departments and centres have also sprung up in universities to lead ethics and responsibility teaching, such as the Business and Society Management department at Rotterdam School of Management and the International Centre for Corporate Social Responsibility in Nottingham University Business School.Whilst there is still a long way to go before schools successfully infuse ethics education across all of their courses, such developments certainly point to an increased emphasis over the past decade. Ethics and corporate responsibility feature far more prominently in the prospectuses of business schools than they did even a few years ago. Questions remain though about how ethics should best be integrated into the curriculum, and even whether exposure to the subject really has a positive effect on the decisions made by managers.While some maintain that a stand alone course on ethics is necessary to develop a suitable understanding of the subject and to consolidate its importance on the curriculum, others argue that this raises the prospects of generating an ‘ethics ghetto’ unconnected to mainstream business subjects such as finance and marketing. And the jury is still out on just how much of an effect any form of ethics training is likely to have on individuals. Various objections have been raised over the years, including the suggestion that students’ morality is already fixed and cannot be improved, and the accusations that ethics teaching is abstract, mbiguous, subjective, and little more than indoctrination from self-r ighteous ideologues. Of course, the extent to which some of these accusations are true will vary from course to course, and on the goals of any specific programme. In the main, evidence suggests that courses are rather better at enhancing students’ recognition of ethical issues, stimulating their moral imagination, and developing their analytical skills rather than improving students’ moral development or changing their values.As one business ethics professor puts it, ‘I do not want to teach moral standards; I want to teach a method of moral reasoning through complex issues so that students can apply the moral standards they have. ’ This highlights another growing debate among business ethics professors about the very purpose of business ethics education – and even what a business ethics course should consist of. Whilst one camp retains belief in the established practice of teaching moral philosophy to develop better normative thinking among student s, other camps have started to emerge.Some business school professors see more need to focus on practical management concerns, such as managing the corporate reputation or preventing accounting fraud, whilst others point to the need to understand ethics within wider social, political, and economic structures. One recent business ethics textbook (by Jones et al. 2005) was even introduced by the authors with an admission that they were ‘not particularly fond of business ethics’ because ‘business ethics in its present form is at best window dressing and a worst a calculated lie’!Ultimately then, developments in the field of business ethics education suggests that business schools and accreditation bodies may be beginning to take the subject more seriously, especially in Europe where something of a momentum appears to be building. However, the future direction of business ethics remains in some doubt. Not only will its integration into the curriculum remain pro blematic for some time yet, but as the subject expands and develops, the approach to teaching business ethics will probably shift quite considerably into new conceptual territory.Whatever the outcome, business ethics will have to go a long way before it presents a completely convincing antidote to corporate wrongdoing, and misconduct in the workplace. Questions 1. What are the main factors encouraging business ethics education and what are the main barriers to its further development and expansion? 2. To what extent can business education cause or prevent ethical infractions in business? Give arguments for and against. 3. Given the importance of situational factors in shaping ethical decision-making, what are the limitations posed by business ethics courses that focus on individual students?How would you design a course to focus primarily on situational issues? 4. Consider the aims and approach of the business ethics course that you are currently studying. What are these, and how ef fective is the approach for achieving these aims? What would you like to see done differently? Sources Alsop, R. 2005. At MBA programs, teaching ethics poses its own dilemmas. Wall Street Journal, 12 April. wsj. com. Boston Globe. 2003. Harvard raises its hand on ethics. Boston Globe, 30 December. Ghoshal, S. 2003.Business schools share the blame for Enron. Financial Times, 18 July. Ghoshal, S. 2005. Bad management theories are destroying good management practices. Academy of Management Learning and Education, 4 (1): 75–91. Jones, C. , Parker, M. , and ten Bos, R. 2005. For business ethics. London: Routledge. Lacy, P. 2005. From the margins to the mainstream: corporate responsibility and the challenge facing business and business schools. Business Leadership Review, 1 (2) (April): 3. Matten, D. and Moon, J. 2004.Corporate social responsibility in Europe. Journal of Business Ethics, 54: 323–37. McDonald, G. M. and Donleavy, G. D. 1995. Objections to the teaching of busi ness ethics. Journal of Business Ethics, 14: 839–53. Mintzberg, H. 2004. Managers not MBAs: a hard look at the soft practice of managing and management development. Harlow: FT Prentice Hall. Swanson, D. and Frederick, W. 2005. Campaign AACSB: status report, January. www. pitt. edu/~rorst6/sim/aacsb. The Economist. 2005. Business schools, bad for business. The Economist, 17 February.