Pro Essay Example | Topics and Well Written Essays - 1000 words

Pro - Essay Example od allergens, food intolerance, and other harmful food substances (Gaivoronskaia & Hvinden, 2006); (2) environmental preservation by using less herbicides and fertilizers that contaminates the U.S. bodies of water. (Carpenter et al., 2007; Thurman et al., 1992); (3) enables farmers to produce insect-resistant (Bt), herbicide tolerant, and virus-resistant crops. (Rao, 2008; Harlander, 2002); and (4) increase Vitamin A, C, D, and E, folate, lycopene, sulfurofane1, lutein2, omega-3 fatty acids, starch, iron, and/or the natural anti-oxidants in fruits, vegetables, and grains. (World Health Organization, 2005; Christou & Twyman, 2004; Harlander, 2002) Despite the advantages of genetically modified foods, the use of this type of technology is subject to a lot of controversial issues when it comes to access to intellectual property rights, ethics, health safety, and proper food labeling among others. (Human Genome Project Information, 2007; World Health Organization, 2005; Myhr & For this study, the researcher will first discuss some basic information with regards to genetic engineering in order to enable the readers to understand the subject better. Eventually, the researcher will clearly describe the problem associated with the use of genetically modified foods followed by providing some recommended solutions on how we could minimize the adverse effects of using genetically modified foods. Prior to conclusion, the researcher will make a justification in relation to the effectiveness of the recommended solution to the problem. Genetic engineering – also known as gene technology, genetic modification, biotechnology, or transgenic – is a special technology that allows scientists to alter the genetic makeup of plants, animals, and/or bacteria. (Human Genome Project Information, 2007) As identified by the World Health Organization (2005), technology used in food modification includes: cloning, tissue culture, and market-assisted breading. Even though there were a

Ethics in the Enron Company Essay Example | Topics and Well Written Essays - 750 words

Ethics in the Enron Company - Essay Example More reprehensible is the attempt of the top corporate hierarchy to feign total innocence throughout the investigation and blame everything on their subordinates. In the light of the Enron scandal, the US Congress immediately passed a law that would reform and revamp corporate practices in the country. Background: The History of Enron Enron began as a small energy company in Houston in 1985 founded by Kenneth Lay. The subsequent deregulation of the energy market gave the company an opportunity to expand into energy related ventures and pretty soon Enron catapulted itself into the world’s largest financial and energy trading company. Its $10 million electricity sales in 1994 ballooned to $4 billion just 3 years later and in 1998, the company’s asset was reported to reach $23 billion (Solomon 34). It did businesses in various markets and industries and provided and traded internationally in the following: energy resources and commodities; financial and risk management ser vices, and; electronic commerce (Joint Committee on Taxation 2003:55-56). In a move that shocked the business world, which by then was one of America’s ten largest companies, filed a Chapter 11 bankruptcy on December 2, 2001. A few months earlier, Enron had been the subject of an investigation by the Securities and Exchange Commission (SEC) after it had publicly reported a $618 million third-quarter loss as well as a $1.2 billion decrease in shareholder equity. Enron’s seemingly sudden financial debacle took the world by surprise because accounting records released quarterly by the company did not in any way reflect its ailing financial condition (Joint Committee on Taxation 2003:55-56). Discussion: Ethics and Enron Subsequent investigation into the Enron case by the Justice Department revealed a pattern of fraudulent practices employed by Enron to show off a facade of financial wealth and stability. These fraudulent practices included exaggeration of earnings in its r eports, concealment of debts and losses through the use various subsidiary partnerships. In the wake of the Enron scandal its top officers were charged and convicted with various offences including fraud, conspiracy, insider trading, and money laundering. Lay, who was convicted of a total of various corporate offences died before his sentence could be served while Skilling, the company’s COO, was punished with imprisonment for a good number of years. In addition, various offices who rendered services for Enron were also not spared such as: Vinson & Elkins, Enron’s Houston law firm, which was made to pay $30 million to Enron for providing erroneous advice to the company; Merrill Lynch, a brokerage and investment firm, which was ordered to pay $80 million to SEC, and; Arthur Andersen, Enron’s editor, who was barred from further practicing in auditing and charged with obstruction of justice for the destruction of Enron auditing documents during the investigation (F errel et al 2010: 420-425). Lay and company’s primary defense strategy was to deny that Enron committed any wrongdoing and instead blame everybody, such as an adverse media, market panic and short-selling, but themselves. Moreover, the top corporate hierarchy often claimed innocence of what was going on and blamed their

Design and analysis (aerodynamics) of the new engine cover for open Lab Report

Design and analysis (aerodynamics) of the new engine cover for open wheel climb race car in by using CFD (computational fluid dynamics). [2500 words] - Lab Report Example At first, the investigation will revolve around the models of turbulence like Shear Stress Transport (SST) and Spalart Allmaras (SA). These models are the best suited for the Computational Fluid Dynamics research. In practice, the Spalart Allmaras (SA) model meritoriously produce good Computational Fluid Dynamics simulations in relation to performance on the cost and stability. The model is suited for meshes without structure. However, Shear Stress Transport (SST) is on the basis of k-epsilon and k-omega baselines. K-epsilon is for the parts of the body that are a bit far from the wall while K-omega model is applicable on the parts near walls. The design model, will have a design of low level engine covers for the new car in a way of cutting down the area at the front of the car. On the basis of the nature science, the new model is created in a way of reducing the coefficient of the drag as one of the aerodynamic forces. This on the assumption that the engine cover is capable of reducing the drag as a result of a decreased area at the front of the car. The small area at the front induced by low height engine cover aids in decreasing the parts of vortices and turbulence near the engine covers and cockpits. This way, the rear wing is capable of developing an excess downward force, on condition the flow is continuous. The vital fact thus is knowledge of the best way to decrease the vortices and turbulence (complex flow). The lab was also effective in perfoming Computational Fluid Dynamics simulation on the helmet. This is the first design established in the process which incorpiorates the engine cover as a way of investigating the regions of flow near the cockpit in each section. The design of the second car is aimed at discovering new ways on basis of high hill engine cover. In accordance to the first simulation result, unstable airflow is developed. A high

Document Based Quesiton (AP World History) Essay

Document Based Quesiton (AP World History) - Essay Example In 2002, then US Treasury Secretary Paul O’Neill claims that the World Bank gave Africa $300 million in loans (as reported by BBC news, 28 May 2002). This staggering amount is just part of the reason why the countries of South Africa have accumulated so much debt. One should simply realize that the World Bank and the International Monetary Fund (IMF), while being international financial institutions, are actually largely controlled by the government of rich countries, like US and Britain (Africa Action website, 2005). While these creditors do provide aid and new loans to Africa, the hapless people of the region are forced to pay more money to them in a vicious cycle of debt. Thus, these creditors are able to wield significant influences over Africa’s economy and the region’s future. It is thus no great wonder why, despite these huge foreign debt, Africa barely has enough to properly supply its people with basic commodities such as food and clean water (O’Neill, 2002). To add insult to obvious injury, Africa is simply up to its neck in epidemic diseases, with AIDS being a major health concern of many countries in the continent. Information from UNAIDS (2000) signify that a great majority of the country is infected, thus resulting to more than 11 million children orphaned by AIDS and an equally significant amount being infected by the disease (UN, 2004). Perhaps the saddest point of this issue is the fact that amidst all these problems, civil unrest still pervade the region (Copson, Africa’s Wars and Prospects for Peace). While children are being orphaned by AIDS, parents lose their children to the never ending wars in the continent, as children are being recruited to serve either as soldiers or perform noncombatant roles both for the government and for the rebels (Amnesty International, 2005). The good thing that may be coming out of all these is that the rest of the world does not just sit back and watch Africa suffer

Crime and Punishment in Various Countries Essay Example for Free

Crime and Punishment in Various Countries Essay Five Works Cited The effectiveness of the United States criminal legal system has been questioned and scrutinized by the media and legal analysts for decades. Even with laws to lengthen sentences and to try younger offenders as adults, the overall crime rate in the nation is still on the rise. But why is it that in places like Iceland and Singapore crime rates are so low yet both countries have very contrasting criminal laws? It has been brought to my attention that Congress will attempt to create an entire new criminal legal system for the states to adopt in an effort to finally make the streets of America safer for its citizens. Assuming that all states will forfeit their own policies to take up the system Congress builds, it is my duty to shed light on the criminal legal system and differing views of the United States and other countries legal systems and differing views of the United States and other countries of different governments, geographies, and legal systems. I will also explore the common ground they share when prosecuting criminal offenders. The information I will discover will be taken into consideration by legislators when designing a new and improved criminal justice system. It is first important to take a close look at the crime rate occurring in America. The United States has more citizens in prison than any other country. The incarceration rate of the U.S. is second only to Russia with 666 incarcerated per 100,000. The U.S. constitutes one third of the worlds population that is imprisoned while it only makes up five percent population. (Fathers Manifesto) The criminal legal system is slightly different in every state. For example, only thirty eight states practice capital punishment while the other twelve employ life imprisonment with no parole as an alternative to putting serious offenders to death. The death penalty in the United states is one of the most criticized policies in American society. Under the Constitutions eighth amendment, Americas are protected against cruel and unusual punishment. While it does not clearly define what punishment is deemed cruel and unusual, several campaigns argue that capital punishment is cruel and unusual and is a direct violation of human rights. Organizations like Amnesty International, a worldwide human rights group, claims that capital punishment is not only inhumane, but it does not deter crime more effectively in comparison to other punishments notinvolving death. (Amnesty International) Other studies have proven that it in fact costs up to three times more to put a person to death that it does to sentence life in prison with no parole. A Texas death penalty case costs an average of $2.3 million, about three times the cost of imprisoning someone in a single cell at the highest security level for forty years.(Hoppe 1A) Yet, with all the polls, statistics, and studies conducted to discourage the practice of the death penalty in the United States, other nations have found the death penalty, as well as other harsh punishments, is not a violation to human and civil rights, but an effective tool in keeping public safety. Singapores criminal laws are some of the most extreme and consistent laws found in all of the world. Its government still employs the use of corporal punishment for some offenses that would receive a mere parole sentence in the U.S. Singapores citizens have stated that even though its punishments are severe and outrageous to some, their streets are safer, cleaner, and the quality of life in Singapore is valued more because of these punishments. In this country the punishments that undergo heavy crossfire in the U.S. are swiftly carried out and as a result, crime in Singapore is significantly lower in comparison to the U.S. crime rates. (Fathers Manifesto) There is a consistent mandatory death sentence for narcotic offenders. A death sentence is also immediately carried out for anyone who opens fire while committing an unlawful act whether or not you shoot anyone or anything is not taken into consideration. (Singapore Law FAQ) Caning is another form of punishment carried out for crimes such as vandalism and sex offenses. Convicts are strapped to a trestle and the exposed buttocks of the offender are flogged by a martial arts expert. The caning is usually coupled with a prison sentence. Singapores officials argue that its strict laws and swift, severe punishment are what sets it aside from a crime-ridden place like New York City. (Fathers Manifesto)Of course, opponents to CP (corporal punishment) argue that this is also a cruel and unusual way to deter crime. However, those that argue this only need to compare the crime rates of Singapore to those of the United States. Whipping or caning is indeed stressful and painful but it is Singapores alternative to costly long-term confinement. This way criminals are quickly reformed and released back into society as  law abiding citizen. Another factor to be considered in Singapores low crime rate is its geography and its size. The country is located northeast of Indonesia just south of Malaysia. It is roughly 3.5 times the size of Washington D.C. It is arguable to say that the reason Singapores crime rates are low compared to the U.S. is because of its small, controllable area. But is the size of a nation or governed land a factor in determining its crime rate? Take into consideration the territory of Puerto Rico. It is a small island in the Atlantic Ocean; considerably smaller than Singapore. However, Puerto Ricos murder rate is more than three times higher than that of the U.S. (National Center) The sharp contrast between a place like Puerto Rico and Singapore and the U.S. is that while citizens of the U.S. and Singapore enjoy a high standard of living, over half of Puerto Ricos population earns less than US$ 11,000 a year. This brings us to another question in this research. Does a socioeconomic factor playa role in a countrys crime rate? Another interesting tidbit is that capital punishment does not exist in Puerto Rico. Their courts are set up similar to those of Singapore. A magistrate judge is the one who hears the case, decides the verdict and delivers the sentence. The prisons in Puerto Ricoare, for the most part, run by gangs, dilapidated, infested with insects and pose a serious health threat to inmates. (Penal Lexicon) The prison system has been under the watchful eye for the drastic and costly changes not only for the prisons, but for juvenile treatment centers, discipline measures and improvements in mental health care. The brutality of violence and disease in prisons seem like enough to prevent anyone from committing a crime that would result in jail time. Unfortunately, even with the abolishment of capital punishment and the anarchy in prisons, Puerto Rico is notorious for holding one of the worlds highest murder rate. (Penal Lexicon) After completing the criminal legal system of three random governments, it is interesting to see how each handles the ever- present demon called crime. When will there be a system that can effectively prevent crime and correct offenders without severe, barbaric tactics and without corruption and anarchy? When researching the topic on criminal legal systems, Ive found  that different countries have very different beliefs in which they value the life of a human. One country, the United States, will go the extra mile to find the best possible defense for its accused. Another, Singapore, will torture and beat confessions from its suspects while the other, Puerto Rico, casts its criminals into a hell practically operated by those society has thrown away. The common ground all three nations share is their never-ending struggle to provide its citizens with the means to live a life that is safe, meaningful and without fear of danger. Back in America, our government will continue to brainstorm ideas to eliminate crime in our streets and neighborhoods.

Theories on Multinational Companies

Theories on Multinational Companies 2.1.1. Introduction In the process of studying the existence, growth and business activities of multinational companies, various theoretical approaches have been developed in the past forty years, depending on the scholars` fields of specialization, perspective and objectives. It is particularly important to distinguish economic approaches to the study of multinationals, strategic management approaches, and finally, cultural approaches to the study of multinational companies. Furthermore, the second part of the literature review will be dedicated to the study of various kinds of spillovers which multinational companies create while operating in the given country, a subject which is of particular importance for the topic of this thesis. 2.1.2. Economic Approaches to the Study of Multinational Companies When reviewing the literature on multinational companies, it is evident that economists find themselves at the forefront of the research on multinational companies. According to Cantwell (1991: 17-18), they are approaching the topic from three perspectives: microeconomic (which deals with cross-border interactions of individual firms), mesoeconomic (which deals with the cross-border interactions of firms at the industry level), and macroeconomic (dealing with the growth and trend of multinationals at national and international level). All of these categories have one thing in common: they all tend to explain the existence of international production. The economic approaches to the study of international business have been dominant in the fields of microeconomics, industrial economics and macroeconomics. These include the theory of the firm by Coase (1937, 1987), as well as internalization theory by Buckley and Casson (1976) and Rugman (1980, 1980 and 1982). Other famous theories on multinational enterprises refer to markets and hierarchies approach by Williamson (1975, 1985), furthermore, market power approach or the theory of international operations by Hymer (1960, 1976), and the approaches of industrial organization by Bain (1959), Caves (1971, 1982), Hirsch (1976), Johnson (1970) and Lall (1980a). As a starting point for his research, Ronald Coase (1937) departed from the traditional microeconomic assumption which states that economic activity is determined freely by the price mechanism and that the economic system works itself. In practice this means that suppliers respond to demand changes, and buyers respond to supply changes through the open market system, which is viewed as an automatic, responsive process. According to him, opposed to the traditional thinking that the economic system is being coordinated by the price mechanisms, Coase argues: This coordination of the various factors of production is, however, normally carried out without the intervention of the price mechanism. As is evident, the amount of vertical integration, involving as it does the supersession of the price mechanism, varies greatly from industry to industry, and from firm to firm. It can, I think, be assumed that the distinguishing mark of the firm is the supersession of the price mechanism. (Coase, 1937 in Williamson and Winter 1991:20). Furthermore, Coase (in Williamson and Winter 1991:30) suggests that at the margin, the costs of organizing within the firm will be equal either to the costs of organizing in another firm or to the costs involved in leaving the transaction to be organized by the price mechanism. Even though the theory of Coase was predominantly meant for the domestic horizon, it later served as the bases of the internalization theory. The concept of internalization has its origins in the theory of industrial relations. Bain (1959) pursues the proposition that there will be possibilities of integration by the firm (acquiring and combining with supplier firms or customer firms) which, among others, have positive economies or savings in cost. Additionally, he stresses that atomistic market structures with unrestricted competition will tend to force or make automatic efficiency increasing integration, and likewise tend to deter inefficient integration. Bain further claims that no particular type of integration will be fully forced in an oligopolistic situation, but there should be a tendency for oligopolistic firms to integrate if there are other advantages (other than costs) to the integration that will not result in inefficiency. He asserts that even inefficient integration is possible if it has offsetting advantages (Bain, 1959:168). Hirsch (1976) suggested that the optimal choice between international trade and international production is determined by the firms specific knowledge advantages and other intangible assets. Rugman (1981: 45) uses Hirsch`s model and interprets it as one that treats knowledge as an intermediate product which is internalized in the structure of multinational enterprise. These ownership advantages impose effective barriers to entry to rival firms. They enable temporary monopoly power to the company by allowing it a possibility to earn profit above the prevailing industry level. Hirsch (1976) states that the greater ownership advantages are, the more economics of production and marketing prefer foreign location and therefore foreign direct investment. Authors Buckley and Casson (1976:33) give their significant contribution to the theory of internalization based upon three presumptions: Companies maximize profit in a world of imperfect markets The imperfect nature of the markets for intermediate goods urges companies to avoid them by creating internal markets Internalization of markets across national boundaries creates multinational enterprises. The main thesis of Buckley and Casson is that attempts to improve the organization of these markets have led to a radical change in business organization, one aspect of which is the growth of MNE. Therefore, a multinational enterprise is perceived as an instrument used for raising efficiency by replacing foreign markets via exploitation of internalization advantages within the framework of transaction costs and exchange. Furthermore, they insist that an MNE is created whenever markets are internalized across national boundaries, and a market in an intermediate good will be internalized only in the situation when benefits outweigh costs. The authors stress the following: Vertical integration of production will give rise to MNEs because different stages of production require different combinations of factors and are therefore best carried out in different countries, according to factor availability and the law of comparative advantage. Moreover, there is a special reason for believing that internalization of the knowledge market will generate a high degree of multinationality among forms (Buckley and Casson 1976, 44-45). Theory of internalization has been additionally advanced by Rugman (1981:28) who pointed out that internalization is the process of making a market within a company. He suggests that company creates an internal market as a replacement for the missing regular (or external) market and in order to overcome the problems of allocation and distribution by the use of administrative fiat. Furthermore, he states that the internal prices (or transfer prices) of the firm lubricate the organization as a potential (but unrealized) regular market. In reality, the internalization theory pursued by Rugman tries to explain the reasons why a company wishes to go into international production across national boundaries. On this particular subject, Rugman (1981:29) states the following: A firm will wish to locate itself abroad to gain access to foreign markets. It will choose foreign direct investment when exporting and licensing are unreliable, inferior, or more costly options. Internalization is a device for keeping a firm specific advantage over a worldwide scale. The MNE is an organization able to monitor the use of its firm specific advantage in knowledge by establishing abroad miniature replicas of the parent firm. These foreign subsidiaries supply each foreign market and permit the MNE to segment national markets and use price discrimination to maximize worldwide profits. Internalization allows the multinational to control its affiliates and to regulate the use of the system specific advantage on a global basis. The concept of creating an internal market within a company in order to avoid relatively high transaction costs of the market system is additionally researched by Williamson (1975). In his work Markets and Hierarchies, he suggests that the economics of transaction costs and in general, new institutional economics explains why companies choose to conduct hierarchical expansion instead of conducting economic activity through the market mechanisms. Williamson states that multinational enterprises choose vertical integration or hierarchy for various reasons: in comparison to the market system, hierarchy extends boundaries on rationality by allowing the specialization of decision-making and economizing on communication expense. Furthermore, hierarchy permits additional incentives and control measures to discipline opportunism. Interdependent units are adapted to uncertainties and unexpected events more easily. Hierarchy also offers more constitutional possibilities for effective monitoring and auditing jobs, which consequently narrows down the information gap which appears in the case of autonomous agents. Finally, hierarchy provides a less calculative exchange atmosphere or environment (Williamson 1975:258). Scholars like Kay (1991) and Lee (1994) acknowledged Williamsons emphasis on asset specificity as a key environmental factor, coupled with uncertainty, which leads to hierarchy or vertical integration. Asset specificity actually represents specialization of assets with respect to use or user. It appears when one or both parties to the transaction invest in equipment, which has been designed especially to perform the transaction and has lower value when used for other purpose. Williamson (1985) states that spot markets will probably fail under the condition of asset specificity. This occurs because party making transaction-specific investments, and for whom the costs of switching partners are consequently high, will fear that one flexible party will opportunistically renegotiate the terms of trade. Asset specificity as a determinant of vertical integration is crucial in relation to given conditions of bounded rationality, opportunism and uncertainty. Asset specificity is the big locomotive to which transaction cost economies owes much of its predictive content. Its neglect is largely responsible for the monopoly preoccupation of earlier contract traditions (Williamson 1985: 54-56). One of the gurus of theory on multinational enterprises is certainly Richard Caves. Caves (1971, 1982) presumed that founding of subsidiary by a multinational enterprise amounts to entry into one national market by a going enterprise based on another geographic market. One possibility of entry is horizontal expansion, when a subsidiary produces the same type of product as the parent company. Other type of entry is vertical expansion or integration across national boundaries either backward to produce raw materials or intermediate products used in its home operations or forward to provide a distribution channel for its exports (Caves 1974a, 117). Additionally, Caves assumed that foreign direct investment appears mostly in industries characterized by certain market structures in both home or host countries. He concludes that differentiated oligopoly prevails mostly in the case when companies opt for horizontal expansion. On the other hand, oligopoly, not necessarily differentiated, in the home market is typical in industries which undertake vertical expansion across national boundaries. Direct investment tends to involve market conduct that extends the recognition of mutual market dependence the essence of oligopoly beyond national boundaries (Caves 1971:1). Additionally, in order to explain the presence of multinational companies, Caves distinguished and explained three types of multiplant companies horizontally integrated company which produces the same line of products from its plants in each geographic market, vertically integrated, which produces outputs in some of the plants that serve as inputs for other plants, and finally a diversified company whose plants outputs are neither horizontally nor vertically related to one another (Caves 1982a:2). With his theory of international operations, Hymer (1960, 1976) emphasized two major causes of international operations: exploitation of oligopolistic advantages and suspension of conflicts between companies in order to strengthen market power by means of collusion. Therefore, Hymer states the following: It frequently happens that enterprises in different countries compete with each other because they sell in the same market or because some of the firms sell to other firms. If the markets are imperfect, that is, if horizontal or bilateral monopoly or oligopoly, some form of collusion will be profitable. One form of collusion is to have the various enterprises owned and controlled by one firm. This is one motivation for firms to control enterprises in foreign countries (Hymer 1976:25). Furthermore, he states that FDI could not be explained as if it were portfolio investments that is, inter country movements of capital responding to differential rates of return on capital. If this direct investment is motivated by a desire to earn higher interest rates abroad, this practice of borrowing substantially abroad seems strange(Hymer 1976:13). Hymer emphasized that international operations type of investment does not depend on the interest rate. The direct investor is motivated by profits that are obtained from controlling the foreign enterprise, not by higher interest rates abroad (Hymer 1976: 26-30). He suggested that direct investments are the capital movements associated with the international operations of companies. According to him there are several types of motivation. The underlying motivation for controlling the foreign enterprise is to eliminate competition between that foreign enterprise and enterprises in other countries, and to form a profitable collusion among them. Another motivation is control which is desired in order to appropriate completely the returns on certain skills and abilities. The other motivation arises from the fact that a firm with advantages over other firms in production of a particular product may find it profitable to undertake the production of this product in a foreign country as well (Hymer 1976: 25-26). Another contribution which is even more fundamental made by Hymer, was to argue for the link between market failure and FDI. Hymer pioneered an oligopolistic theory of the growth of production networks across national boundaries, through collusion and exploitation of ownership advantages in a market power context, instead of a location theory context. The market power school of thought pursues that internationalization lowers the extent of competition and increases collusion among firms, in general (Cantwell 1991a:30). Due to their relative abundance of capital but scarcity of labor, traditional neo-classical economics assumes that countries which are economically developed have low profit or interest rates but high wage rates prior to international operations. Therefore, capital intensive goods go from economically developed countries to less developed labor abundant countries. There can also be a tendency for capital rich countries to export capital directly through foreign direct investment in developing countries. In the same manner, economists that belong to the Marxist school of thought, advocate the idea that there is a tendency for the rate of profit to decline in capital rich countries, due to the intensity of competition. Consequently, foreign investment in less developed or underdeveloped countries serves as an outlet for surplus capital (Cantwell in Pitelis and Sygden 1991:20). Recent historical data, however, reveal a trend which challenges stipulations of the traditional neo-classical and Marxist theories. Before 1939, imperialistic and colonial influences have been determining factors which influenced international trade and investment between hegemonic countries and developing countries. Similar trade and investment patterns prevailed in 1950s, but the trend started to change in the past few decades. In 1950, around three fifths of manufacturing exports from Europe, North America or Japan were directed to the developing countries across the world, but by 1971, only just over one third (Armstrong et al., 1984:251). Additionally, Dunning (1983b:88) acknowledged that two thirds of the worlds stock of FDI was located in developing countries in 1938. This amount has fallen to just little over a quarter by 1970s (cited by Cantwell in Pitelis Sugden 1991:20). During 1980s and 1990s significant capital mobility among developed countries overshadowed foreign direct investment in the developing countries. Mergers and acquisitions were the main trade mark of multinational production activities across the industrialized world during this period. At the time, in the developing world FDI have been characterized by joint ventures, privatization ventures and pioneering projects in the field of manufacturing and infrastructure (World Economic Forum 1997:28). During the 1990s, economically developed countries were still the most favorable destination of FDIs. However, this period has been significant since a large flow of capital invaded emerging markets, especially the ones in Asia where incentives for foreign investments have been extremely attractive. China, for instance, received $42.3 billion in 1996, which accounted for 38 percent of total FDI flows to the emerging markets in that year. Additionally, other emerging markets in Asia, such as Malaysia, Indonesia and Thailand became increasingly significant recipients of foreign direct investment (World Economic Forum 1997:28-30). On a macroeconomic level, different approaches have been developed in order to explain cross-border activities of multinational companies. The most important ones are the following: the product cycle model by Vernon (1966), trade and direct foreign investment model of Kojima (1978), location theories of the division of labor as analysed by Buckley and Casson (1976), Casson (1979,1986), Casson et al. (1986) and Buckley (1988), investment-development cycle advanced by Dunning (1982), stages of development approach by Cantwell and Tolentino (1987) and the eclectic paradigm by Dunning (1977, 1981, 1988, 1993a, 1995a, 1995b). Product cycle model, as defined by Vernon (1966) represents a combination of a three-stage theory of innovation, growth and maturing of a new product with the RD factor theory (Kojima 1978:61). The latter theory presumes where a new product or technology is most likely to be created. In this new phase stage, design of the product is often being changed and therefore, its production is technologically unstable and the market is not enough acquainted with the product. Consequently, the sales will not grow rapidly and the demand for the product will remain price-inelastic. In this phase, research and development activities of scientists and technicians are of crucial importance for the introduction of inventions and changes in design. Theoretically, the introduction of the RD factor in the product cycle theory represents the addition of a factor of production to the conventional two-commodity, two-factor model. If this approach is accepted, it follows that one may add new factors of production one by one in a similar manner. At the growth phase which comes after the first one, sales of products increase. Mass production and bulk sales methods are introduced. At the same time, entries in the industry increase and competition grows among producers. Demand becomes price-elastic and therefore, sales of each firm become more responsive to the price. Under these circumstances, the realization of economies of scale and managerial ability of the company play important role (Kojima 1978: 62). Finally, when the mature phase is reached, the product becomes standardized and its production technologically stabile. Instead of the crucial role that is played by research and development activities or managerial abilities in the new-phase stage and growth stage, unskilled and semi-skilled labor become important. Therefore, through foreign investment production location is being directed to low-wage, developing countries. The expenses of marketing or exporting the product from these countries may be lower compared to other commodities, since the commodity is standardized. Kojima (1978) gave several comments on Vernons product cycle theory. Firstly, the theory is not founded on the principle of comparative costs. Vernon himself elaborates that his theory discusses one promising line of generalization and synthesis, which appears to have been neglected by the main stream of trade theory. It does not stress the comparative cost doctrine but instead emphasizes more the timing of innovation, the effects of scale of economies, and the roles of ignorance and uncertainty in influencing trade patterns. Secondly, this theory tries to explain the location of production of one commodity by a firm growing through monopolistic or oligopolistic behavior (Kojima 1978:63). Kojima (1978) suggested the so-called trade and deficit foreign investment theory as an alternative approach to the study of multinationals. Furthermore, he suggested that foreign direct investment should complement comparative advantage patterns in different countries. Such advantage has to originate from the comparatively disadvantaged industry of the source country, which leads to lower-cost and expanded volume of exports from the host country. Significant criticism of Kojima`s theory is the manner in which import-substituting investments are referred to as anti-trade oriented. While import-substituting investments could be considered as anti-trade oriented at the microeconomic level, they are not anti-trade oriented at the macroeconomic level. In fact, an increasing level of exports usually follows the growth of FDI from USA, Germany and Japan. There are proofs which suggest that export-oriented investments may have a less significant impact in industrial adjustment or in increasing the welfare of the host country since these investments are likely to be an enclave kind (Dunning and Cantwell 1990 as cited in Tolentino 1993:51). Rugman (1981:47) suggested his main objection with Kojima`s analysis is that it is set in the static framework of trade theory, meaning that his model requires perfect markets. It is obviously a mistake to observe technology as a homogenous product over time and to ignore the dynamic nature of the technology cycle. It is probable that the United States have a comparative advantage, not in technology itself but in the generation of new knowledge. Consequently, it is feasible for US FDI in technology to take place to secure new markets on a continuous basis, as successive stages of the technology cycle are used, firstly in domestic markets and than in foreign ones. Dunning (1982, 1986) contributed to the investment-development cycle model with his suggestion that the level of inward and outward investment of different countries, and the balance of the two, is a function of their stage of development as measured by GNP (gross national product) per capita. After threshold phase of development, outward investment increases for countries at yet higher levels of development. The balance between inward and outward investment in developed countries results in the return of their net outward investment to zero. The continued growth of their outward investment at a later phase results in a positive net outward investment (NOI). Tolentino(1993) offered empirical evidence for the period since the mid-1970s which imply that the existence of a structural change in the relationship between NOI and the countrys relative stage of development as a consequence of the general rise in the internationalization of firms from countries at lower stages of development. The growth of newer multinationals from Japan, Germany and smaller developed countries, as well as some of the richer developing economies, implies their firms` capacity to follow the earlier outward multinational expansion of the traditional source countries, the USA and the UK, at a much earlier stage of their national development. The enhanced significance of outward investments from these newer source countries enables firm evidence of the general trend towards internationalization do that the national stage development no longer becomes a good predictor of a countrys overall net outward investment position. Cantwell and Tolentino (1987) suggested the stages of development approach to the study of multinationals. They posed a hypothesis that the character and composition of outward direct investment changes as development proceeds. Additionally, the say the following: Countries` outward direct investment generally follows a developmental or evolutionary course over time which is initially predominant in resource-based or simple forms of manufacturing production which embody limited technological requirements in the earlier stages of development and then evolve towards more technologically sophisticated forms of manufacturing investments. The developmental course of the most recent outward investors from the Third World has been faster and has a distinctive technological nature compared to the more mature multinationals from Europe, USA and Japan, owing to the different stages of their national development. Dunning (1977, 1981, 1988, 1993a, 1995a, 1995b) and his eclectic paradigm tends to explain the ability and willingness of companies to serve markets across national borders. Furthermore, the eclectic paradigm attempts to elaborate why they opt for the exploitation of any available advantages through foreign production instead of using domestic production, exports or portfolio resource flows. He hypothesized that a company will go for international production or engage in foreign direct investment if it owns net ownership advantages (mostly in the form of intangible assets) vis-Ã  -vis firms of other nationalities in serving particular markets. These ownership advantages, accompanied by internalization and location possibilities, will enable a company to benefit when using or internalizing a particular foreign market itself, instead of selling, renting or leasing them to foreign companies. Location possibility in this context means locating a multinational firms production activity in a foreign country that possesses competitive advantages in terms of factor endowments. If these three conditions (ownership, location and internalization) are not present, the firm can instead serve its local market through domestic production and expand it to serve foreign markets through international trade. The bigger the ownership advantages of multinational companies, the more incentive they have to use these themselves. The more the economics of production and marketing favor a foreign location, the more they are likely to engage in foreign direct investment. The propensity of a particular country to engage in international production is then dependent of the extent to which its enterprises possess these advantages and the location attractions of its endowments compared with those offered by other countries (Dunning 1981:79). According to Dunning eclectic paradigm is perhaps, the dominant paradigm of international production. It presumes ownership specific advantages as endogenous variables, i.e. to be a determinant of foreign production. This means that the paradigm is not only involved with answering the question of why firms go for FDI, in preference to other modes of cross-border transactions. It is also concerned with why these firms possess unique resources and competencies relative to their competitors or other nationalities and why they choose to use at least some of these advantages together with portfolio of foreign-based immobile assets. This makes it different from the internalization model, which regards ownership advantages as exogenous variables (Dunning, 1993a:252). As perceived by Dunning, the eclectic paradigm is meant to capture all approaches to the study of international production. In his opinion the model represents a good starting point to discover the global explanation of MNE`s existence and growth since it synthesizes the explanations of the existence and nature of international production. Dunning states that his eclectic paradigm can give an adequate analytical framework which enables understanding of all kinds of foreign production in services. Stressing the interdependence between services and goods industries, he asserts that it makes no sense to try to develop a new paradigm to explain the transnationality of the service sector (Dunning 1993a:248-284). In his scholarly research, Dunning was assertive to find all possible explanations of the existence of multinational enterprise in his eclectic paradigm. As the years went by, he tried to expand knowledge in the framework of his eclectic paradigm by attempting to accommodate possible additional explanations to multinational production activity that come to his knowledge. As an example, for instance, he argues that the advent of collaborative alliances among multinational firms does not lead to the development of a new multinational theory. Therefore, he has incorporated alliance capitalism in his model. In his renewed version of the eclectic paradigm in the light of alliance capitalism, Dunning(1995a) considers that inter-firm alliances (with clear reference to American multinationals) in innovation-led production systems are emerging as dominant forms of market-based capitalism, and are overtaking the global influence of hierarchical capitalism. Dunning has focused on the narrow view of the value-adding activity of innovation-led capitalism, and has considered other joint ventures, not wholly owned production operations, dominate the multinational enterprise involvement in less developed countries (Vaupel and Curhan 1973). Both in theory or in practice, internalizing a foreign market and going for a joint venture alliance with a foreign partner are just two possible options that a multinational company can choose in international business activities. Therefore, alliance as a strategy can be the dependent variable, just like international production, that needs further explanations. Explanations to joint ventures overseas could also include ownership, location and internalization considerations. Border lines between the three levels of economic analysis microeconomic, mesoeconomic and macroeconomic have to be neglected in order to synthesize the various economic approaches to the research of multinationals. Modern economic explanations of cross-border production activities of multinational firms are mostly reflected in the configuration of ownership, internalization and location advantages. Dunning has integrated those three fractions under the wing of his eclectic paradigm, but his primary objective in doing so is still to find eclectic explanations to the phenomenon of international production. Despite the differences in academic specialism, perspectives and objectives of economists who pursued the study of the existence of multinational companies and made significant contributions this field, they have one thing in common: they all targeted the explanation of the phenomenon of international production activity across national boundaries. 2.1.3. Strategic Management Approa

Holden :: essays papers

Holden Holden Caulfield is in many ways a typical teenager, skeptical of all authority and with a truculent attitude. The one value that he espouses is authenticity and morality, although he does not carry any other these characteristics himself. Holden also focuses on authenticity and, in turn, the essential phoniness of others around him but does not see the phoniness in himself. Holden's admission that he is the "most terrific liar." One could meet is an apt statement, for his delusions extend beyond making others believe his deceptions. In fact, it is debatable whether or not people believe Holden's lies. Rather, Holden's ability to lie is most manifest in his own sense of self-delusion. Holden is at a constant war with himself between the way he acts and the way he likes other to act. Continuing to berate others for phoniness, Holden cannot recognize the same sense of vapidity within himself. For example, he claims to be both illiterate and an avid reader, and when identifying his favorite authors he cannot identify any particular reason why he likes those authors' works. A reoccurring theme in the story is how Holden thinks everyone he comes into contact with is a phony, but yet throughout the novel it seems that the phoniest person is Holden. These two sides are contradicting each other . For instance, he says that he hates Ackley and yet when he needs a place to stay after his fight with Stadlater he turns to Ackley for a place to stay. What I think Holden really feels is that Ackley is someone who socially he feels should be a looser but someone who he trusts and can come to in a time of need. Holden seems to harbor a disgust for any type of sexuality, whether Ackley's obviously false boasts or Stradlater's successful seductions. Yet, Holden brags about his own false sexual encounters. To the reader, it could be easy to determine that Holden is sexually frustrated wanting sex but when having the opportunity to have it forcefully declines. Holden continues to show a latent hostility toward everyone he meets, for instance the encounters with Lillian Simmons or Horwitz. In most of these encounters, Holden expresses a false sense of cordiality toward the people he encounters, yet describes only their most negative traits.