Impact of culture on globalization strategies Essay - 2

Impact of culture on globalization strategies - Essay Example ly discussed the extent of corporate obligations of MNCs through a presentation of traditional theories popularized by Adam Smith (Theory of Moral Sentiments), Bentham and Mill (concept of utilitarianism), Smith’s ethical nature of political economy, and Milton Friedman’s minimalist approach to corporate obligations. According the Friedman, the only social responsibility of a business is to enhance the wealth of the firms stockholders (1962). However, Cobb concluded that â€Å"while there is no firm agreement on the extent of corporate responsibility, most discussions move beyond this minimalist approach† (2000, 2). The model which examines corporate responsibility is the stakeholder model which was defined as â€Å"firm managers must recognize the legitimate rights of the firms claimants in making decisions. The claimants include not only stockholders and employees but also others who can influence or are influenced by the decisions of a firm (Pearce & Robinson, 1982). Claimants commonly include customers, suppliers, governments, financial institutions, unions, competitors, local communities, and the general public.† (Cobb, 2000, 3) As stakeholders increase in number and become more diverse due to globalization, the more those cultural and ethical norms should be incorporated in international transactions. A discussion on the moral philosophy delved into identifying its three parts: value, the good and duty; and different societies view moral philosophy differently. Likewise, Cobb emphasized that â€Å"cultures are constantly evolving and the ethical and cultural norms of a society will change over time† (2000, 4). Trade, on the other hand, has an effect in adapting the cultural and ethical norms of MNCs. Cobb clearly explained that â€Å"when there is a long history of peaceful coexistence between countries, social interaction will develop, and some cultural norms of the countries will be accepted by the other country. Along with the acceptance of the cultural

Econ 1500 Assignment Example | Topics and Well Written Essays - 250 words

Econ 1500 - Assignment Example It originated from the classical economists, but later adopted by modern Marxist economics, i.e. Karl Marx. Value exists in three different concepts i.e. utility, use value, and exchange value. In classical economist’s viewpoint, labor input determines the value of a good or service. On the other hand, marginalists believe that a buyer of a good determines its utility, and this fluctuates with consumption patterns. Therefore, the major transition involves labor as the cornerstone of valuation of a product to utility as the form of valuation of a product (Hartwick and Peet 1). Which economists/philosophers derived economic information and theories on â€Å"utility†, the â€Å"equi-marginal principle†, and â€Å"opportunity cost† principles in economics that we use in today’s economic analysis? Identify the concepts and economists, and then briefly explain these three economic principles. Paul Samuelson derived the theory of utility. The concept of utility describes the tastes and preferences associated with consumer’s consumption patterns. This comes from the dual side analysis of value and price i.e. demand and supply sides. Herbert Simon invented the concept of opportunity cost. This is the cost of an activity measured against the foregone value of the next best alternative, i.e. the sacrifice in relation to the next best choice taken among mutually exclusive choices. The principle of equi-marginal utility was the brainchild of Hermann Heinrich Gossen. This concept is an extension of diminishing marginal utility law as it explains how a consumer behaves while distributing his or her limited income between various services and goods. This law dictates that a consumer will allocate his money income among several goods in order to derive maximum