Social & Political Environment of Business
Protectionist policies include policies such as tariffs (taxes) upon imported goods and quotas, the latter of which limits the number of imported goods which can be brought into the country. The intention of protectionist policies is to protect local industries and jobs from competition.
From the perspective of a poorer nation, protectionism can have certain advantages. A developing nation frequently does not have the resources to compete with a more developed nation in terms of the quality of the goods it manufactures. Developed nations can frequently operate on economies of scale and price their goods much more cheaply and have better technology to produce those goods. Through protectionism, a local industry in a poorer nation has a chance to grow and develop while it is 'protected' and can employ native workers in the process.
Q3. However, there are considerable detriments to embracing protectionism: from a free trade standpoint, it makes little economic sense for a nation to produce what it can more cheaply import. This is unfair for consumers,...
However, a corporate executive, according to Friedman, would have to spend other people's money for a general social interest, by means of reducing returns to stockholders, lowering worker wages, or raising the price of products. However, herein lies the basic flaw of this author's reasoning, for the social responsibility of the business as it falls on the executive is to make sacrifices for the benefit of others. In a
Offshoring an Ethical Business Practice? The practice of offshoring jobs is one that has been discussed at length by both by critics and proponents. Proponents argue that it is an unavoidable outcome of trade agreements that are both necessary and helpful to the global economy. Critics disagree and find offshoring to be destructive to the economy. As Sir James Goldsmith has pointed out in his argument against the General Agreement
Business Plan In order to accomplish our mission we set forth the following strategic goals, they include: Build the Financial perspective of our business by addressing how shareholders view the firm and which financial goals are desired from the shareholder's perspective. Goals are closely linked to the business lifecycle and must be adjusted over time. For example, in the early stages, our goal is revenue growth, but as the company becomes more
The office and administrative expenses would remain constant even to that point, as would the insurance expense. Exhibit B: Cash Flow Statement, Year Two At this point, the business is earning a healthy return and Mr. Ahn is receiving will be able to bring in a reasonable salary. The nature of the business may well change at this point. At the maximum revenue of $144,000 per year the pretax profit would
Environments The real world companies that are being studied are Starbucks, Apple and FedEx. These three companies face different external environmental challenges and have focused on shifting their internal environments in order to better compete in their external environments. The PEST analysis will be used as the analytical framework (QuickMBA, 2012). Starbucks operates in the quick service restaurant industry, and is one of the top brands in that business (QSR Magazine, 2011).
Stakeholders may also exercise political power indirectly, for example, during protests by environmentalist on a government move. Lastly, the stakeholders have legal power. Legal power means they can sue the business firm if they feel they unfairly treated by the business firm. This happens when they sue a corporation for damages due to harm caused by the firm on the stakeholder. An example is a lawsuit by customers for damages
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