Trade Theories, Culture, Managerial Decisions, Criminal Laws, And Corporate Ethics Code Essay.

What trade theories support the recent rise of China and India on the global stage? Explain your views in detail.

Name four elements of culture and briefly indicate why they are important when marketing products and services internationally.

What types of managerial decisions in foreign countries are driven by cultural factors?

Criminal laws vary widely throughout the world. What may be a “crime” in one country may represent permissible conduct in another country? Why do you think there are such vast global differences in this regard?

Would companies eliminate financial scandals if they establish a corporate ethics code? Why or why not?

Trade theories that support the recent rise of China and India

Trade theories serve as metrics that are used in explaining a country’s trade pattern and their effect to the local and international economy of the country (Singh, 2019 p.688). The theory of Comparative advantage and the factor proportions theory are among the trade theories that explain the reason behind the increase in the rise of China and India in the international world. Comparative advantage theory state that, “A country normally specializes in producing goods and services with greatest comparative advantage” the theory emphasizes on the production of goods and serves that that they can produce more efficiently and import those goods and services that they cannot produce efficiently (Beaudreau,  2016 p.18). For the case of China and India, they are classified as countries with labor intensive services against other countries. They will therefore produce goods and services that require intensive labor at a lower cost as compared to other countries without labor intensive factors.  

The factor proportions theory is also called Heckscher-Ohlin Theory. This theory states that “The country should focus on producing commodities that requires resources that are in great supply and import commodities that require resources that are less in supply”. It is very cheap to produce commodities with available resources rather than producing products under strained resources which is a bit costly. Therefore, India and China has continued to progress in the global market since they only focus on what they can produce most (labor intensive) and leave the rest for other countries to produce (Greenaway, 2017 p. 156). It has been therefore beneficial to establish industries that require labor intensive services in China and India due to its availability of the mentioned services. China and India are able to import goods and services whose resources are not endowed in their country thus satisfying the needs of people in their local economy and the global world.

Culture is the way of life among ethnic groups both in local and international world. There are various elements that are considered to vital during international trading. These elements include language, values and attitudes, symbols, aesthetic among others. Language is the most parameter that should be considered before engaging in international trade. Understanding the language used in another country enables trade interactions and communication to be effective. A well understood language fosters better interactions between the buyers and seller from different continents (ZAHID, and Ilie?, 2018). Prices and demand for products are well communicated between countries that understand the language of each other. Values and attitudes are also elements of culture that must be considered during international trade. Understanding the values and attitudes of customers enables the interacting countries to understand the dos and don’ts thus avoiding violation of the values of such countries (Désilets, 2016 p. 451). The other element of culture is religion of countries that engage in international trade.

Elements of culture that are important when marketing products and services internationally

Different countries advocates for different religions that must be obeyed by each and every person. It is important to understand a country’s religion before launching new products in a company. Products traded in different counties should comply with the religious beliefs of such countries. Failure to observe the religion of the trading partner attracts unnecessary losses that arise after supplying goods and services that are against the religion of the key country. Additionally, education is another key factor during international trade. Interacting countries should asses the rate of literacy among them (Pomeranz, and Topik, 2017). This enables the marketing planner to either use written documents for countries with high literacy level or use easy method of advertising and selling their products in countries with the lowest literacy level. Observing such elements will enable counties to trade among themselves without misunderstanding and conflict that may arise due to the violation another county’s cultural beliefs.

Managerial decisions are critical in the management of resources and people in the foreign country. The host country has norms and believes that must be adhered to wile interacting with the new in managerial positions. Various decisions should be made concerning the nature of the product, brands of products, mode of advertisement, communication styles among other decisions. Managerial decisions concerning the nature of the product are important since such decisions ensure that the wants and needs of potential customers from the foreign country are fully satisfied (Svejnar et al., 2018). Branding of products also is major decision that managers should considered. The branding techniques must also comply with the culture of the foreign country. Such decisions are made for the purpose of meeting a country’s expectations concerning their culture.

During branding, the products must also be modified in a manner that will accepted by customers that belong to a particular culture in the foreign country. It is the role of managers to make decisions concerning product modification to favor the customers from a particular country. Products should be branded in a manner that will recognize and respect a country’s cultural beliefs. Mode of advisement is also part of the managerial decisions that should be made while in foreign countries.  Advertising products using mediums that will violate a country’s culture should be prohibited. The managing team should consider doing background research to determine a favorable medium for advertising products without violating the cultures of a foreign country. Also, managerial decisions concerning the required communication must be considered. The right communication styles should be adopted to minimize communication barrier that may be against the foreign country (Dash, and Ranjan, 2019 p. 101). Considering the communication styles facilitates better understanding of the information being conveyed concerning the products and services. It is therefore vital to practice managerial decisions to ensure that all activities are complying with the culture of the host country.

Types of managerial decisions in foreign countries driven by cultural factors

Criminal laws vary widely throughout the world. What may be a “crime” in one country may represent permissible conduct in another country? Why do you think there are such vast global differences in this regard? Answer this question in 300 words

Countries have unique ways of classifying crimes. Crimes are illegal actions that are against a county’s laws. Crimes attract penalties for individuals who commit crimes against the state or their fellow citizens. The nature of crimes in a country depends on the social and cultural values and also the political philosophy of the country. Any crime that violates the above factors attracts a penalty for violating a country’s laws (Mettraux, 2020).  The different legal system is the one that differentiates different crimes in different countries thus a crime in one country is not a crime in another country. This is because of the different legal system. There is a difference in which countries view different crimes and make judgments. With regard to the crimes committed, various countries in their jurisdiction have outlined their laws in statutes or code of conduct. These laws are different irrespective of the country location. There are laws that are acceptable in one country and the other country considers them as unacceptable laws since they laws may be violating the norms of the country.

For instance, there are countries that consider abortion as a serious crime while other countries consider abortion as a legal activity. The level to which a crime violates the social values of a country relies on the set statutes. Differences in cultural norms have rendered many countries to tackle crimes differently. Before making judgments on the crimes committed, it is advisable to learn another person’s culture before ruling an order towards the person in custody (Canter, and Youngs, 2016) . We may make wrong judgment and punish individuals for not obeying certain laws and yet they are behaving according to their set rules. To avoid such scenarios of culture confusion, a country should define its cultural and values and make them known to key stakeholders to prevent penalties that may be unnecessary for a county’s citizens.

Financial scandal is a term that refers to the manipulation of organizational finance for on benefits. The code of ethics is only believed to give a well-defined direction of a company to enable employees to workers to work towards the set goals. The idea of establishing the corporate ethics code will not eliminate the financial scandal that is normally experienced in a company (Toms, 2017 p. 358). Employees have various different interests in a company and they will strive to accomplish their mission irrespective of the direction given by the management team concerning the corporate ethic code. It is therefore evident that the direction offered will be followed but also the financial scandals will continue to be experienced in the company. It is not easy to find employees without money orientated mind. Most of such employees yearn to get rich so despite the strategies that will be incorporated by the company to curb financial scandals; other means will be used to get money from the company to benefit other parts rather than the company (Geddes, 2017 p. 420). The secret means for acquiring funds from the company will continue to thrive in the company.

A company is forced to incur costs for training and enlightening employees to focus on developing the company and the end results will still report financial scandals. It is therefore not guaranteed that establishing the corporate ethics code will eliminate the issue of financial scandal. Individuals will always strive to achieve their interests from the company through scandals. The main demerit of financial scandals in a company is that, a company’s finance are drown away to benefit individual parties. The company can be left insolvent and even be threatened to close down due to financial constraints as a result of financial scandals that are performed by the trusted employees of a company.

References

Beaudreau, B.C., 2016. Competitive and comparative advantage: Towards a unified theory of international trade. International Economic Journal, 30(1), pp.18.

Canter, D. and Youngs, D., 2016. Crime and society.

Dash, R. and Ranjan, K.R., 2019. An effectual–causal view of managerial decisions in the internationalization of Indian MNEs. Journal of International Management, 25(1), pp.101.

Désilets, G., 2016. Negotiating ‘national’and ‘international’elements of culture in a transnational social field. Asian and Pacific Migration Journal, 25(4), pp.451.

Geddes, B.H., 2017. Integrity or Compliance Based Ethics: Which Is Better for Today’s Business?. Open Journal of Business and Management, 5(3), pp.420.

Greenaway, D., 2017. New trade theories and developing countries. In Current Issues in Development Economics (pp. 156-170). Palgrave, London.

Mettraux, G., 2020. International Crimes: Law and Practice: Volume II: Crimes Against Humanity. Oxford University Press, USA.

Pomeranz, K. and Topik, S., 2017. The world that trade created: society, culture, and the world economy, 1400 to the present. Routledge.

Singh, S.K., 2019. An Empirical Studies of the Heckscher-Ohlin Model. International Journal of Research, 6(2), pp.688.

Svejnar, J., Revoltella, D., Gorodnichenko, Y. and Weiss, C., 2018. Resource Misallocation in European Firms: The Role of Constraints, Firm Characteristics and Managerial Decisions.

Toms, S., 2017. Fraud and financial scandals. The Routledge Companion to business history, pp.358.

ZAHID, R.A. and Ilie?, A., 2018. The Impact Of Eastern European Culture On The International Trade. REFLECTING ON EUROPE’S (DIS) ORDER: SCENARIOS FOR THE EU’S FUTURE.