Globalization of Markets, Marketing Ethics and Social Responsibility

Question 1

Socioeconomic model of social responsibility refers to communities and workplaces’ improvements while economic corporate governance encompasses policies and practices that board of directors, executive managers and stakeholders utilizes in order to fulfil their core responsibilities to other stakeholders and investors and to also manage themselves. These two corporations exercise different responsibilities. For example, socioeconomic corporate focuses on responsibilities such as establishing infrastructure socially and also contributing to communities uplift through transferring education, skills and technology in order to create sustainability to them. Unlike socioeconomic, economic corporation have four basic responsibilities that their businesses offer to its stakeholders. They include; Non-discrimination, profitability, sustainability and transparency.

Economic social responsibilities aims at creating profit when selling services and products that have more value than the cost of investing and creating them. Secondly, these corporations act with great transparency in their business in order to provide adequate information in regards to its operations. Economically, these corporations apply their criteria of finance to all of their employees, customers and suppliers in order to avoid bias against ethnic groups or gender (Tamra, 13). Lastly they also ensure that there is sustainability in accordance to their operations and they promotes this by improving processes of these businesses as well as developing solid and secure relationships with their customers and suppliers.

Economic and Socioeconomic corporations shares similarities in their social responsibilities such as, Sustainability and transparency that regards to their business activities. However, these two corporations have major differences in their responsibilities. For example, socioeconomic, not only does it emphasize on profits but it also majors on the business decisions’ impacts on the society. On the other hand, in the Economic social responsibility model, business produces and markets goods that are profitable all alone, and most profits are enjoyed by the society.

Question 2

Business ethics refers to morals that are set to govern operations of a business, how decisions of these businesses are made and how clients, customers and shareholders are treated in these business environments. These business ethics and the morality of the business result from the moral standards of each individual in the cultural and political environments in which the operations of these organizations take place. In some cases, law imposes some business ethics. For example, the exchange commission and securities govern ways through which stock brokers and investment bankers carry away businesses.

Parboteeah, Praveen & Culeen (13) argues that, some ethical concerns that may come in the business world includes; Medical research ethics or medical and the attorney ethics. Medical ethics calls for protection of human subjects when conducting experiments or when treating customers. Various institutions and peer review boards govern these experiments that are to be conducted on human subjects in order to see to it that business ethics are promptly followed and to also ensure that people who carry out these experiments make the best ethical and moral decisions.

The second type of the business ethics concerns is the attorney ethics. These ethics ensures that there is complete confidentiality. The law have a recognition that high moral obligation are exercised by attorneys so that they can keep secrets of their clients confidential. However, if there is violation of this ethical duty by an attorney, then he is liable to losing his operating license so as to practice law.

Question 3

Economic systems are constituted by methods through which services and goods are distributed and ways through which allocation of resources take place. The degree at which these systems are differentiated is through the government’s participation in the economy. Command economy system, is a system where most production factors, decisions that concerns resources allocation and determination of the services and products that should be provided, is owned by the government. However, in the capitalism system, each business or individual works upon their interests and their decisions range maximizes their individual profits (Wolf, Ruth, Issa & Thiel 15).

The similarities of these economic systems are; they both deal in producing factors of production. They both transact their businesses with sellers and buyers of their goods and services and they are profit oriented. However, capitalism and command systems have differences for example, in the command systems, means of production are owned by the government and the state employees manages it, however, production factors in the capitalism system are owned privately.

Another difference is that employees in the command economic systems operate under economic planners who are appointed by their respective parties. This therefore, sets prices output targets hence this being a major interference with those operations that satisfy party and personal desires. Unlike this system, employees and businesses under capitalism, enjoy freedom of pursuing their individual interests. Transaction of businesses in capitalism system, are conducted in markets where there is interactions between sellers and buyers whereas the command system discourages investment and international trade hence placing emphasis on self-reliance.

Question 4

Rise of global economy in the United States was as a result of economic dominance and lack of interconnectedness. This process of world diversity has therefore contributed to sharing of events, trade and experiences and has also promoted solid relationships as it allows countries to come together. In America, this global economy which is market oriented, their business firms and their private individuals, constitutes to range of decisions while on the other hand, state and federal governments purchase services and products that required in the private marketplace.

Global economy has contributed to various implications in America businesses for example; Business firms of America have a greater flexibility as compared to their counterparts who are in Western Europe and Japan. This is due to their range of decisions to expand their capital plants in order to dismiss their surplus workers and come up with new products development. Their capital gains have grown rapidly from the global economy than other categories of incomes of after tax and wages. There is a rise in consumption of their imported oil and this makes their home prices to peek at very high rates (Mermod, Asli & Idowu 13).

However, a variety of factors that results from global economy affects the competitiveness of American firms. They include; short term barriers such as inflation of prices of their goods and increased rates of unemployment. The long term problems are; investments are inadequate in infrastructures that are deteriorating, the aging population is causing rapid rise in pension and medical costs and there is also scarcity of energy. Global economy has also led to current budget and account deficits. It has also led to wages of families who have lower income stagnant.

Question 5

Two kinds of restrictions that nations place on international trade are tariffs and quotas. A tariff is the tax that is imposed on imported goods from other nations. The main objective of establishing tariffs includes; Protective tariffs are set in order to offer protection to domestic industries from being subjected to competition and this is made through making goods that are foreign more expensive. Secondly, revenue tariffs are established with an objective of raising capital for the respective government.

A quota is the limitation of the amounts of goods for importation. The man objective of this trade restriction is to create shortages in goods that quotas have been put to. This is facilitated by rise of prices of goods thus allowing domestic producers to come up with expansions in their productions and to their prices also.

According to Reuvid, Jonathan & Sherlock (11), the main consequences of tariffs and quotas are; those workers that earn income are fewer due to lowering of production. These restrictions also raise prices which is one of these nations’ core purposes. On the other hand, they enable countries to offer protection to their own industries. After maturity of these industries has taken place, their protection even lasts longer. Due to limitations of trade, there is reduction in number of services and goods that are produced hence this shifts production from exporting producers who are more effective to domestic producers who are less effective. Setting of Tariffs and Quotas also aids nations in protecting their strategic industries, for example; Munitions, chemicals, cars and steel that when there are wars are imported.

Works cited

Mermod, Asli, and Samuel O. Idowu. Corporate social responsibility in the global business world. Heidelberg: Springer, 2013. Print.

Orr, Tamra. Understanding economic systems. New York: Rosen Pub, 2012. Print.

Parboteeah, Praveen, and John B. Cullen. Business ethics. New York, NY: Routledge, 2013. Print.

Reuvid, Jonathan, and Jim Sherlock. International trade an essential guide to the principles and practice of export. London Philadelphia: Kogan Page, 2011. Print.

Wolf, Ruth, Theodora Issa, and Monica Thiel. Empowering organizations through corporate social responsibility. Hershey: Business Science Reference, 2015. Print.