...Assessment #1: Economics and Ethical Issues “Markets bring together buyers (“demanders”) and sellers (“suppliers”)…” (McConnell-Brue, p. 43) In order to predict the economic issues associated with supply, demand, and equilibrium price of a particular product, I will need to explain the relationship between these components. Supply is the number of goods and services that businesses are willing to sell at different prices at a specific time, and demand is the number of goods and services that consumers are willing to buy at different prices at a specific time. (Ferrell, p.13) Supply and demand will meet at a certain point where the sellers are willing to sell products and services at a certain price and consumers are willing to buy at a certain price, this point is called the equilibrium price. The equilibrium price will also help to determine the equilibrium quantity, the price and the amount of product and services demanded and supplied at the equilibrium price in a competitive market. At this amount of equality, there is neither a shortage nor a surplus of product and services. The supply and demand of the products Tylenol, Aleve, and Advil depends basically on the consumer’s preference and taste. First, let me state that all of these products serve the same purpose, to relieve headaches and pain. What makes the difference is the characteristic of each product which is the active ingredient. “Tylenol and certain generic brands rely on acetaminophen. The active ingredient...
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...Assignment #1 Economics and Ethical issues Matthew V. Gibbons Dr. Nick Nayak BUS 508/Section 025016 – The Business Enterprise July 18, 2010 Strayer University 1. Discuss what will happen to supply, demand, and price in the short term. The impact of supply in the short term for Mrs. Acres Homemade Pies if Shelly does not hire more staff or expand her current production will be she will not be able to keep up the amount of orders, demand, which she is currently receiving for her product. This is not necessarily a bad situation for the company to be experiencing. As the demand for the product increases Mrs. Acres Homemade Pies will be able to raise the price of the product to also offset the cost of hiring more staff and expanding production the production facilities in order to keep up with the demand of the product. In the short term Shelly needs to heavily consider raising the price of the pies to so that she can than afford to expand and keep production of the product under her control. The success of Mrs. Acres Homemade Pies is based in that it is not like your typically massed produced items that will sacrifice quality to keep the cost down. It would appear in this situation that part of the attraction of the product is the fact that it is of a better quality which is driving the demand of the consumer for the product. As we have discussed in previous discussions the consumer will dictate how much they will spend for a product which in turn will also create part...
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...Economics and Ethical Issues BUS508 The Business Enterprise Introduction In this paper, I will discuss two types of businesses, homemade pies and soft drinks. Mrs. Acres Homemade Pies is small business that produces specialty pies to local supermarkets and select family restaurants. This company is growing rapidly in profits and employees (Ferrell, 2009). I am going to analyze the supply and demand for this company along with pointing out challenges Mrs. Acres should consider in managing the growth of her business. The next business that I will discuss is a soft drink company that operates in a monopolistic competition market. Monopolistic competition exists when multiple businesses are selling the same goods with very small differences (Ferrell, 2009). I will discuss the economic factors needed to operate this type of business and identify how each factor could give the business a competitive advantage. Mrs. Acres Homemade Pies Mrs. Shelly Acres love for cooking motivated her to start her own business called Mrs. Acres Homemade Pies. Mrs. Acres had taken her grandmother’s homemade pie recipe and turned it into a successful pie business. Mrs. Acres sells her pies to local supermarkets and select family restaurants for $4.50 each (Ferrell, 2009). During the first six months, Mrs. Acres produced 2000 pies each month. Her success comes from three productive part time employees who produced...
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...ASSESSMENT # 1: Economics and Ethical Issues by George Ugrekhelidze Strayer University Business Enterprise: BUS508 Professor: George H. Barbosa, PH.D 10/27/2009 ASSESSMENT #1.1 Introduction The paper responds to the questions posed in section titled “Mrs. Acres Homemade Pies” at the end of Chapter 1. Shelly Acres, a founder of the company, faces the dilemma in producing homemade pies. Mrs. Acres Homemade Pies struggles to keep up with demand. Question 1: Discuss What Will Happen to Supply, Demand and Price in the Short Term. Supply is a various amount of product that producers are willing or are able to produce for selling at different prices at a specific time. In our case supply is an amount of pies Shelly Acres’ company, Mrs. Acres Homemade Pies produces. In the first month of the business she sold 2000 pies. Following month amount of sold pies rose to 8000. Demand is a various amount of product that buyers are willing or are able to purchase at different prices at a specific time. In our case, demand for Mrs. Acres’ homemade pies is rising. Good quality product and a reasonable price of pies caused rising demand. It continues accelerating beyond what Shelly can supply. The most of the time when company produces a high quality product in reasonable price, demand for this product will increase. This is happening to Shelly Acres’ business. In short term, demand will keep rising. Also, the necessity of...
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...Introduction (Background of Mrs. Acres Pies) Mrs. Acres Homemade Pies derived from Shelly Acres whose grandmother gave her a family recipe for making pies. Shelly Acres loved to cook so she decided to start her own business called Mrs. Acres Homemade pies. The company produced specialty pies and sold them in local supermarkets and selected family restaurants. In the first six months Shelly Acres and three part time employees sold 2,000 pies for $4.50 each, netting $1.50 profit per pie. The business was so successful they could not keep up with demand. In order to meet demand Shelly Acres had to expand operations, borrow money, and increase staff to four full-time employees. Production and sales of the homemade pies increased to 8,000 pies per month and profits increased to $12,000 per month. Shelly Acres’ homemade pies continued to increase beyond what she could supply. Now Shelly has the dilemma of making a decision of how she should proceed with her company in the short run and long run to continue to make profits. Short-Term Supply, Demand and Price In the short run with supply staying constant and demand increasing. Shelly Acres will have to make a decision whether to increase price to maintain supply and demand. With an increase in demand in pies will raise both the equilibrium price and equilibrium quality. In the short run Shelly Acres has expanded her operations, borrowed money, and increased her staff in order to keep up with demand. In the short term of things...
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...Given the business situation of Mrs. Acres Homemade Pies (p.30) and using the economic concepts of supply and demand, explain: Discuss what you think will happen to the supply, demand, and price of the product in the short-term: Upon reviewing Mrs. Acres’ situation on page 30, there is a limited amount of information given. However, with the information we do know, Mrs. Acres can currently produce 8,000 pies a month with a full-time staff of 4 employees. In this circumstance, the quantity Mrs. Acres is able (willing) to supply and the current price of $4.50 that the consumer is willing to spend is known as the equilibrium price. In the short-term, given the above facts, with there being a max that can be produced, there will be no effect on supply. Mrs. Acres cannot produce anymore than the 8,000 pies as stated above. At the maximum number of pies that can be made, supply is limited and does not change. Since the current supply of pies is constant, demand will most likely increase. An increase in demand will raise both the equilibrium price and equilibrium quantity, however will not have an effect on the actual price of the pies. 1. Discuss what you think will happen to the supply, demand, and price of the product in the long-term: In the long-term, Mrs. Acres may decide to expand both her staff and facility. If this is done she can produce more than the 8,000 pies. This will increase the supply she can produce, causing a drop in the equilibrium...
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...Note: Your solution, advantages, and challenges, will be in Parts 2 and 3. Write a three to four (3-4) page paper in which you: 1. Provide an appropriate title and an interesting opening paragraph to appeal to your stated audience (appeal with logic, ethics, or emotion). 2. Include a defensible, relevant thesis statement in the first paragraph. (Revised from Assignment 2) 3. Describe the history and status of the issue and provide an overview of the problem(s) that need to be addressed. This should be one or two (1or 2) paragraphs. 4. Explain the first problem (economic, social, political, environmental, complexity, inequity, ethical/moral, etc.) and provide support for your claims. This should be one or two (1 or 2) paragraphs. 5. Explain the second problem (economic, social, political, environmental, complexity, inequity, ethical/moral, etc.). and provide support for your claims. This should be one or two (1 or 2) paragraphs. 6. Explain the third problem (economic, social, political, environmental, complexity, inequity, ethical/moral, etc.) and provide support for your claims. This should be one or two (1 or 2) paragraphs. 7. Provide a concluding paragraph that summarizes the stated problems and promises a solution. 8. Develop a coherently structured paper with an introduction, body, and conclusion. 9. Use effective transitional words, phrases, and sentences throughout the paper. 10. Support claims with at least three (3) quality, relevant...
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...CHAPTER 3 ♦ ETHICAL BEHAVIOR AND SOCIAL RESPONSIBILITY ♦ Ethical Behavior- is that which is accepted as “good” and “right” as opposed to “bad” or “wrong” in the context of the governing moral code. Laws and Values as Determinate of Ethical Behavior * Personal Values- the underlying beliefs and attitudes that help determine individual behavior. * Terminal Values- are preference about desired ends, such as the goal’s one strives to achieve in life. Ex. Self-respect, family security, freedom and happiness. * Instrumental Values- preferences regarding the means for accomplishing these ends. Ex. Honesty, ambition, imagination, and self-discipline. Alternative Views of Ethics Four views of Ethical Behavior: ♦ Utilitarian View- considers ethical behavior to be that which delivers the greatest good to the greatest number of people. ♦ Individualism View- is based on the belief that one’s primary commitment is to the long-term advancement of self-interests. ♦ Moral Rights View- it is which respects and protects the fundamental rights of people. ♦ Justice View- it is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards. • Procedural Justice • Distributive Justice • Commutative Justice • Interactional Justice Cultural Issues in Ethical Behavior Cultural Relativism- belief that is no one rights way to behave and that ethical behavior is always determined by the cultural context. Universalism- suggests ethical standards...
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...how we ought to live. Ethics involves making moral judgments about what is right or wrong, good or bad. Right and wrong are qualities or moral judgments we assign to actions and conduct. Within the study of ethics, there are three branches: metaethics , concerned with methods, language, logical structure, and the reasoning used in the interpretation of ethical terms, for example, what exactly the term “good” means; normative ethics , concerned with ways of behaving and standards of conduct; and applied ethics , concerned with solving practical moral problems as they arise, particularly in the professions, such as medicine and law. Ethics provides us with a way to make moral choices when we are uncertain about what to do in a situation involving moral issues. In the process of everyday life, moral rules are desirable, not because they express absolute truth but because they are generally reliable guides for normal circumstances. Normative Ethics Normative ethics is fundamental to ethical decision making in the criminal justice system. A central notion in normative ethics is that one’s conduct must take into account moral issues; that is, one should act morally, using reason to decide the proper way of conducting oneself. Essentially, ethics, in prescribing certain standards of conduct, gives us a way of making choices in situations where we are unsure how to act. What are these standards of conduct and how do we decide what is right and wrong? Some argue that because standards...
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...Countrywide Financial and resolving the issues against former CFO David Sambol and former CEO Angelo Mozilo, what should be the next steps that Bank of America must take to salvage Countrywide Financial from onslaught of criticisms and lawsuits that already arose and would potentially arise against it? II. Analyzing Case Data In the mid-2000, season where real estate prices were booming and confidence levels were high, even clients who could have qualified for regular loans chose to take out subprime loans to finance their real estates. Just like most businesses, Countrywide did everything to expand their profitability. They gave false assurance to home buyers. So, even consumers with good credit rating get attracted to these mortgages without fully recognizing the possible consequences. The construction industry also used flipping to expand its profit. Speculators also bought existing homes with no intension of keeping them, waiting until the value increases, and selling them at a profit. High demand also caused an increase of the cost of materials. Realtors, on the other hand, were motivated to push sales through because of commissions they could earn, pushing them to take much riskier transactions. Even real estate appraisers began to inflate the value of homes to ensure that loans would go through. Without being foreseen by anyone, US economy began to slow down. People started working more and earning less money. In spite the economic crisis, builders kept on building,...
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...Critiquing Philosophical Approaches to Ethical Decision Making Get Tutorial by Clicking on the link below or Copy Paste Link in Your Browser https://hwguiders.com/downloads/acc-260-week-4-critiquing-philosophical-approaches-to-ethical-decision-making/ For More Courses and Exams use this form ( http://hwguiders.com/contact-us/ ) Feel Free to Search your Class through Our Product Categories or From Our Search Bar (http://hwguiders.com/ ) As a student we are required to evaluate the philosophical approaches for each scenario from Appendix B. Evaluating whether or not the reasoning for the course of action listed makes sense. While working on the evaluation of the philosophical approaches we will discuss if the course of action is the most ethical, the best reasons for making the choices, and the reasons for believing this alternative is ethical. Consequentialism is the intent to maximize the usefulness of a decision. For this the relevance of this act depends on its consequences. For this approach it is essential to have a good ethical decisions and perception of it. With this it is important for students to analyze a decision in how the harmful and/or the benefits. This many philosophers’ debate ht consequences should count Deontology is different because it focuses on the obligation or duty in motivating the decision or the actions of the consequences. This depends on the respect, rights, and fairness. This approach brings up issues related to duty, rights, moral standards...
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...Ethical Issues in Management Whilst society is essentially based upon performance and profit, it is not unusual to find that ethical issues abound in the process of the performance review. Social, moral, and economic pressures can also influence the ethical issues which are bound up in the performance review. To further complicate matters, there are often legal aspects that have to be considered, along with the ethical issues, that are influenced by the social, moral, and economic pressures, that are all bound up in the process of the performance review. It is hardly surprising that most managers and supervisors dread this part of their job. The following will describe a workplace example of the performance review process, including two ethical issues faced by the managers, the social, moral, and economic pressures that could influence the ethical issues, and some legal aspects faced during this process. Performance Review Process The Company, a successful retail corporation, has a policy of annual reviews for in store hourly employees on their anniversary dates. The reviews are on preprinted forms with number scores ranging from 1-poor to 4-excellent in twenty-five different categories. Annual raises are based on performance and the Company does not have an annual cost of living raise. Most in store hourly employees, in position for more than four years, will reach a raise cap for the position and then only receive a $0.05 an hour raise unless they have an excellent score...
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...in Business Ethical Values in Mainland China, the U. S. and Jamaica,” writes about the results of a second research performed that compares what has been considered third world countries, Mainland China and Jamaica, to the United States (U. S.), and how each countries culture impacts ethical decision making in businesses. The study contained five vignettes and two hypotheses. The vignettes were scenarios in which the subjects responded to, according to what they believed were ethical or those that were not. This paper will cover the culture that impacts China and Jamaica, the results of the research and ethics plays a role in decision making for financial, environmental, and cultural issues; how the concepts of positive and normative economics are reflected; and how market efficiency, economizing, and the market system affects these ethical issues in each country compared to the U. S. Ethics in Financial, Environmental, and Cultural Issues Mainland China was a socialist-based economy that converted to free market over 25 years ago. China’s culture is founded upon Confucian and Maoist, rather than capitalist, which impacts ethical decisions made by Chinese business leaders (Fok, Hartman, & Kwong, 2005). Jamaica’s heritage is capitalist and it is a low uncertainty avoidance country which means the country is open to changes in pressures to industrialize more so that other cultures. The country’s eagerness to develop could have an impact on how ethical its business...
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...Chapter 5 Social Responsibility and Ethics How important is it for organizations and managers to be socially responsible and ethical? In this chapter, we’re going to look at what it means to be socially responsible and ethical and what role managers play in both. Focus on the following learning outcomes as you read and study this chapter. LEARNING OUTCOMES 5.1 Discuss what it means to be socially responsible and what factors influence that decision. 5.2 Explain green management and how organizations can go green. 5.3 Discuss the factors that lead to ethical and unethical behavior. 5.4 Describe management’s role in encouraging ethical behavior. 5.5 Discuss current social responsibility and ethics issues. SPOTLIGHT: Manager at Work Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the critical role of these issues in today’s complex business environment. In the opening case, “A Manager at Work,” we see firsthand the complications that arise when companies are caught in the middle of unethical and illegal allegations. The case revolves around allegations of attempted bribery by three Renault executives. After an investigation, all three of the employees were dismissed, but the story doesn’t end there as the Paris prosecutor in charge of the case later dismissed the charges for lack of evidence. Renault would eventually backtrack on the firing of the executives, rehiring all three...
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...Trends in Theory and in Practice of the International Business Ethics Gabriela Dubcová* ABSTRACT The ethics triangle: national law, culture and political economic system. Key factors of current ethics issues in an international environment. The most visible changes in environment dimensions. Principles of international business ethics. Current ethics challenges in international environment. Common issues of the international business ethics. Comparison of ethical standards in different cultures. Accelerating development of globalization and assimilation between Europe and the USA. Differences between Europe, the United States and Asia in the business ethics perspective. Development processes of global business ethics. Levels of global business ethic level. Principle of normative guidelines for business conduct of multinational corporations. Current functioning of institution engaged in the international business ethics. Key words: The ethics triangle; Current ethics issues; International business ethics; Ethical standards; Global business ethics; Institution engaged in the International Business Ethics. JEL classification: K2, M1 Introduction The present economic situation in the globalized world generates very efficient processes in international companies with large profits for managers but with a relevant risk in economic and noneconomic ambit to eliminate any negative impacts of the crisis from one country to another. In this case, it is necessary to enact and apply ethics...
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