Neoliberal Globalization Essay Example | Topics and Well Written Essays - 1500 words

Neoliberal Globalization - Essay Example As the research stresses there is a great difference in â€Å"being free to conduct a wisely-planned activity to gain both tangible and intangible outcomes† and â€Å"not to be under control†. Seemingly, those two aspects are mixed, and as the result the global situation is far from being perfect. The issue of freedom is closely intertwined with the topic of neo-liberalism. The present paper aims to review the issues of the neo-liberalism and worldwide integration and conclude if the positive outcomes will be possible in case neoliberal worldwide integration continues its movement without any changes applied to its current outlook. According to the paper findings despite the fact the key features of worldwide integration were widely implemented many decades ago, this definition appeared recently in 1970th. The story of international cooperation and trade turns back to even thousands years ago. However, that issue was mostly about trade. Nowadays, being global is rather the necessity. Of course, trade is a powerful instrument of enrichment, moreover, if it is about its international feature. However, even being a consequent element, trade is not the only one in the elements’ list of worldwide integration. In addition to trade, political achievements, religious features, economic successes, and scientific innovations are the important elements of global cooperation. Moreover, it is impossible in the current situation for this or that society to stay beside the global way of things, unless the situation is about a tribe somewhere deep in the jungle.

Management Accounting Essay Example for Free

Management Accounting Essay Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountants have a CVP model that is appropriate for assisting management with decision making Ryan Bebbington Word Count 1796 Economists and accountants have diametrically opposite views of cost-volume profit (CVP) behaviour but only accountants have a CVP model that is appropriate for assisting management with decision making Cost volume profit analysis looks into the relationship between a firms fixed and variable costs and total revenues across a varying level of production. The model will give a predicted level of profit at a given level of production. There are many ways that CVP analysis can be useful for decision making, it is important to distinguish between the different applications of the Economists and Accountants interpretations, as well as other factors involved in decision making. CVP analysis is used in management decisions when forecasting production levels. To use this model effectively, Management will look at different scenarios of output, prices and costs, and see where the model predicts the firms revenues will cover its total costs. This point is known as the breakeven point. Management can investigate the effects of price increases, changing costs from fixed to variable such as salaries to commission based pay. Managers can also investigate the outcomes from decisions such as making components in house or buying in, retaining or replacing equipment and marketing decisions. They can also investigate the sales mix. By having a prediction of the effects of these variables, managers will be able to make better decisions, as they have more information. CVP is a simplified model and thus has limitations to its analysis and predictions. When managers are aware of the limitations and how to correctly use CVP analysis it can be a powerful tool. Managers must be aware that there are assumptions that are made to simplify the CVP tool, as it cannot truly model the real business, as it would be far too complicated. The economists interpretation of the CVP graph, Figure 1, is based on two main assumptions, which explain the shape of the cost and revenue curves. The first assumption, which affects the revenue curve is that the firm is competing on price competition, this means that in order to increase sales, the firm must reduce the marginal selling price of the product. This causes the firms revenue curve to level off, as the marginal revenue falls to à ¯Ã‚ ¿Ã‚ ½0, as in figure 1b. After this point the firm is selling at a negative price, causing the firms total revenue to fall. The second assumption is based on the firms cost curve, is based on economies and diseconomies of scale. The firms economies of scale cause the variable cost per unit to decrease as production increases, as in figure 1b. This can be due to any of the economies of scale, such as purchasing, where a discount for bulk buying is received, managerial, where managers can become more specialised, financial where the firm is offered lower interest rates as there is a lower risk of lending. The Total cost curve will level off as these increasing returns to scale cause the production to reach a level of most efficient output. After this the firm will experience decreasing returns to scale, as the plant is operating at a higher production level than it was designed for, causing problems in production, such as bottlenecks in the production line. This causes the average unit cost to increase again, giving the curve its shape. It is important to understand that Economists are trying to most accurately model real world situations, rather than create a tool for management decisions. The accountants CVP model, figure 2, is based on a simpler interpretation of the cost and revenue functions, this is because Accountants are not concerned with provided an accurate representation of the cost and revenue functions, instead they wish to display the relevant ranges, figure 3, of production for the firm. As this is the information that is used for short-run decision making, as this is the time frame where the information is most useful for management decision making, information for longer term decision making is required for board level decisions, to do with the long term objectives of the company. The information that the firm uses to produce its cost and revenue curves is extracted from previous operating costs and revenues, this ensures that the information is reliable. The Accountants cost function, is a straight line, which assumes that for each additional unit produced, a standard variable cost is incurred, the assumption that production will only be occurring in a relevant range means that the firms production will not alter enough to cause increasing or decreasing returns to scale. The Accountants interpretation of the fixed cost curve is different to the Economists view because it meets the Y axis at a higher point, which indicates that the Accountants believe that firms are committed to a higher minimum level of fixed costs. This is because although a firm may reduce its fixed costs to a lower level, as in the Economists interpretation, the firm can only do this by redundancies and shutting down plants. As the Accountants model only represents a relevant range, the fixed costs cannot be reduced to this level in the short run, when this interpretation is extended outside of the relevant range, a stepped fixed cost and total function will be seen, as in figure 3. The other difference is that the revenue function is linear. This is because in the short run, firms cannot change the price of their products easily; it may also be because of firms competing on non-price, rather than price competition. As Accountants make no attempt to extend the revenue function outside of the relevant range, there is no need to model the firms decrease in product price to increase demand. The Accountants interpretation of the Cost Volume Profit model is more appropriate for Management decisions, as management decisions are not concerned with long term information. This is because the Board of Directors will be making the firms long term decisions. The information that the Economists model provides, includes a lot of information outside of this relevant range, this will affect the reliability of the data in the model. The data in the model will be less reliable as it is more difficult to accurately predict the behaviour of the cost and revenue functions, outside of the relevant range, as it is not based on past sales data. It will also be more expensive to compile the information needed as it is a more complex model. It can also be argued that some managers will find it difficult to interpret the Economists model, as the information will be more complex. Managers may wish to extend the CVP model to cover longer term decisions, will need to be aware of the long term behaviour of fixed costs. In the long term, firms will have a greater control over fixed costs, they can expand capacity by increasing floor space, hiring more supervisors and upgrading or purchasing new machinery. Which will give the firms fixed cost line a step function. Other factors will also affect the firms revenue and cost curves, such as advertising strategies, changes in political, environmental, social, economical, and legal factors, such as a change in VAT rate. These factors cannot easily be planned for and are not easily shown in long term CVP analysis, which is the main reason that CVP cannot accurately model long term production. One of the features useful for decision making, is the ability to display the information in different methods, one of these is the Margin of safety. This is the difference between the expected sales and break even sales, expressed as a percentage of the expected sales. It shows management the level that sales can fall by before the companys revenue falls below the breakeven point. The information can also be displayed as two other charts. The first is a contribution chart, figure 4, in this chart, the fixed costs are shown as the difference between the variable cost line and the total cost line. The total contribution is displayed as the difference between the revenue line and the variable cost line. It is useful for showing a total contribution level at any level of output. The other presentation is the Profit volume graph, figure 5; this graph is useful because the other two charts to not directly display the profit at any given level of production as it must be calculated. The P-V graph simply displays the firms profit or loss at any given level of production. These two graphs will be useful for management decisions concerned with contribution or profits at a given level of production. Once again, the economists version of these two graphs would be far too complicated, and the information will not be reliable enough to base management decisions on. In the real world, firms will be producing multi products, and spreading the overhead costs across each of these products. A firm may wish to alter the CVP analysis to reflect their product mix. This is done by grouping production into batches. The batches revenue and variable costs will be defined as the total of the products in the batch. The values for the batch are then applied to the CVP chart in the same way as a single product. For the CVP model to be used effectively by managers, they must be aware of the assumptions made whilst preparing and gathering the information. If management are not aware of the assumptions made in the data, then they will be unable to draw relevant conclusions from the information. The assumptions i are that all other variables remain constant; there is a constant sales mix, total costs and revenues are linear functions of output, profits are calculated using variable costing, the analysis only applies to the relevant range, costs can be divided into fixed and variable elements, it only applies to the short term, and fixed costs do not change. In conclusion, the Accountants interpretation of the CVP analysis, as shown by the underlying assumptions, will allow managers to develop a more relevant understanding of the information, so that it can be used more effectively in decision making. If managers tried to use the economists CVP graph, the cost of gathering and interpreting the data would be high, as well as making the information more difficult to understand and less reliable. In the real world, the Accountants model may be considered too simplistic, as it relies on many assumptions and conditions, which are often not met. This is why it important to understand that the Accountants CVP model may not be applicable. For the CVP analysis to be effective, managers must be aware of the limitations of the model, otherwise they will be unprepared for any deviations from the outputs of the model.

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

Free Essays on Invisible Man: Plot/Character Analysis/Themes :: Invisible Man Essays

Invisible Man: Short Plot/Character Analysis/Themes Invisible Man, written in 1952 by Ralph Ellison, documents a young black man's struggle to find identity in an inequitable and manipulative society. During the course of this struggle, he learns many valuable lessons, both about society and himself, through his experiences. The story begins with the narrator recounting his memories of his grandfather. The most remarkable, and eventually the most haunting, of these is his memory of his grandfather's last words in which he claims to have been a traitor to his own people and urges his son to "overcome 'em with yeses, undermine 'em with grins, agree 'em to death and destruction, let 'em swoller you till they vomit or bust wide open." These words remain imprinted in the narrator's mind throughout the book, although he never fully understands their meaning. His grandfather's words eventually serve as catalyst for his subsequent disillusionments, the first of which occurs directly after he graduates from high school. At this time, the narrator is invited to give a speech at a gathering of the town's leading white citizens. The speech he is planning to give expresses the view that humility is the essence of progress. Subconsciously, the words of his grandfather prevent him from truly believing the thesis of his own speech, but he gives it anyway. Instead of being shown respect for his work, however, he is humiliated by being made to fight blind-folded against other young black men, and then being shocked by an electrified rug. He pretends not to be angered by these events, yet his true feelings escape him for a moment when, while he is reading his speech, he accidentally says "Social equality," instead of "Social responsibility." After he finishes his speech, he is awarded a new briefcase. Inside the briefcase is a scholarship to the state Negro College. That night he has a dream in which his grandfather tells him to open the briefcase and read what is in the envelope. He finds that it says "To Wh om It May Concern, Keep This Nigger-Boy Running." Unfortunately, he is still too disillusioned to grasp the meaning of his grandfather's warnings. During his Junior year at college, the narrator drives for Mr. Norton, one of the college founders that is visiting the campus. During the drive, Mr. Norton tells the narrator that he is his destiny.

“Gentlemen Prefer Blondes” Comedy Essay

â€Å"Gentlemen Prefer Blondes† is a 1953 Musical-Comedy released by 20th Century Fox, directed by Howard Hawks and starring Marilyn Munroe and Jane Russell; the two greatest sex symbols of the era. The camera’s point of view is that of the ‘male gaze’, where women are regarded as objects of fascination and the men are assumed to have a position of power. Hawks shows how it can be easily hijacked by females smart enough to control, manipulate and ultimately blur the ‘male gaze’. As much as this film is shot for the ‘male gaze’ it is as much for a female audience as it is for males. In the song-and-dance sequence, â€Å"When Love Goes Wrong†, the two female protagonist had just been expelled from the hotel by Gus. Though the situation for Lorelei and Dorothy should be one where they are left helpless and powerless the scene however displays the opposite. In the entire scene both female protagonist are captured front and center with close ups and the lighting on their faces is well defined which gives them a sense of importance and power. At the same time the men gather around them captivated, giving their undivided attention to the females as they sing and dance; giving them a position of control over the men. Their position of power is so prominent that they even get the admiration of young boys who seem to be gypsy’s. Gypsy’s are known to be quick, sharp and in control when it comes to stealing but in this scene their heads are turned by the sensual Lorelei and they are totally distracted. Bothe females are well aware of their manipulative powers as Dorothy encourages Lorelei to use her charms, saying, â€Å"Do it now, do it!† What appears to be submissive to the ‘male gaze’, in this scene however they put on a chow in exchange to negotiate their presence and have their voices heard in a dominantly male world. When the females are seated they appear to be two damsels in distress, however the movement of standing up represents liberty and the space they command when dancing communicates freedom and power. A melancholy moment turns to a vibrant and fun sing-and-dance where they reject the actions of men to have power over their emotions. Though the scene is shot in the view of the ‘male gaze’ the line is blurred when Lorelei and Dorothy use their sensual and attractive appearance to control, manipulate and command power in a dominantly male world. By this the scene takes a turn to cater to the female sight giving a sense of empowerment and independence in a situation where they should be the damsels in distress.

APUSH Research Paper Essays

APUSH Research Paper Essays APUSH Research Paper Paper APUSH Research Paper Paper The late 1800s and early 1900s, during the era of post Emancipation, the United States was a period of identity exploration, enlightenment, and empowerment, as well as interdivision, discrimination, and adaptation for the African American peoples. Social revolutionists like Marcus Garvey and role modeled entrepreneurs like Madam CJ Walker were among the many blacks that influenced the national black community during their time of struggle and search for societal and economical direction. Walker and Garvey both strived for the advancement of their people, but had different long term effects on blacks and plans for the future. Walkers use of Eurocentric ideals to beautify Black features socially and economically carried her higher than any woman, let alone black woman, in the business world. Her use of advertisements created a standard of black beauty in America that would gain acceptance. Garveys efforts to create a movement glorifying Afrocentric culture and lifestyle resulted in criticism from his own people and federal attention. These historical fgures in the African American community were a part of a long lasting conflict of identity within the black race and the continuation of developing a black American culture completely different than African culture, creating a disparity between what it means to be African and African American. Madam CJ Walker, born Sarah Breedlove, was the first one of her family born into freedom in 1867 in Delta, Louisiana. With the time periods lack of indoor plumbing, central heating, and electricity, most Americans bathed infrequently, causing people like Walker to experience hair loss and scalp disease. Walker experimented with home remedies to find a cure. Soon, she developed her own line of hair care and moved throughout the ountry to major industrial cities like Pittsburgh and Indianapolis to spread its use. In Pittsburgh, Walker established Lelia College in 1908 to educated hair culturists and expand her empire. It was in Indianapolis that she opened her headquarters and factory. With her success, Walker believed in empowering the black community by providing a place where they can develop skills to become successful entrepreneurs. Her institutions taught and trained black women to build and manage themselves in the business world. She also gave lectures on social, economic, and political issues sponsored by black institutions. As time went on and blacks dispersed throughout American society, racial violence and discrimination in the South became the social norm. Jim Crow Laws enacted in 1876 during the annexation of Reconstruction legally separated blacks from whites and created the hatred of the black race. After the East St. Louis Race Riot, Madam CJ Walker united with the leaders of the National Association for the Advancement of Colored People (NAACP) in their efforts to bring lynching as a federal crime. Through her efforts to support black advancement, Walker donated large amounts of her earnings to rganizations like the NAACP, black schools, orphanages, and retirement homes and was acknowledged in 1918 at the biennial convention of the National Association of Colored Women (NACW) for making the largest contribution to save the Anacostia a $250,000 estate in New York which was built by the first licensed black architect in New York State, Vertner Tandy. Never before had a black woman from the south born of slave parents climb the social and economic ladder to success and become the wealthiest African-American woman in America and known to be the first self-made female American millionaire. Between the 1890s and early 1900s, blacks struggled with white acceptance, and often went to extreme measures to make themselves appear to have enough white blood in them to fend themselves from the worst types of discrimination. Slavery deprived Africans of the natural oils and herbs they used to maintain healthy hair, thus forming the definition of the word nappy as foaming to describe the kinky matted texture of the slaves hair which has become a way to further stigmatize Black hair. The nations social, political, and economic system had been determined by racial appearance and standards. Madam CJ Walkers hair care product advertisements often depicted European features on a black woman, insinuating that the more white you are, the more beautiful, socially accepted, and capable of achieving a better life you are. On one label, Walker herself is depicted with long, straight hair and light skin. This label sends the message to her customers that they too can achieve this luscious, Eurocentric hair when they use this product, ensuring a more appealing and Americanized view of black beauty. Another ad for Madam CJ Walkers miracle products shows a woman with White features, ossibly portraying that Walkers products could work on any type of hair, or advertising a look that everyone should achieve to maintain their society-approved womanhood. Despite Walkers astounding accomplishments as a post- Emancipation black woman, her inventions and goals toward helping blacks achieve success contributed to the appreciation of Eurocentric culture, ideal of self-hatred within the black communities, and growth of the belief that African features were not beautiful. These adaptations to American societal standards were a means of survival for Walker and ther blacks who used Eurocentric ways to create a culturally accepted life for themselves. These ways of living and gaining recognition in the white communities created a divide between blacks who glorified and strived to uphold Afrocentric traditions like Marcus Garvey. Jamaican political leader, Marcus Mosiah Garvey, Jr. was born in 1887 and became many things including a resolute proponent of the Black Nationalism and Pan-Africanism movements. He founded many pro-black Communities League, the Black Star Line, part of the Back-to-Africa movement, which promoted the return of the African diaspora to their ancestral lands. His ability to actualize a mass movement and economic empowerment for Africa created the ideal of Garveyism. Influenced by Booker T. Washington, Garvey became intelligent as a child from reading books from his fathers extensive library. He attended Birkbeck College in London, taking Eurocentric education to use to his advantage in applying his knowledge to leading a nation of mentally and economically broken people. The early 1900s in the northern states of America was a period of Black advancement and pride. During the Harlem Renaissance era, when blacks developed a culture of rts, literature, politics, and a new social identity, Garvey began publishing his widely spread newspaper, Negro World, in August of 1918. As the editor, he used the paper as a means to spread black nationalism through an everyday primary source to those of African ancestry at home and abroad. Garveys Negro Magazine gave blacks a literary social life (inspiration) that was never attainable as slaves. The magazine was strong with words of motivation and pride that encouraged blacks to keep fighting and be proud of their ancestry. This decision of following Eurocentric or following Afrocentric ideals and culture divided blacks along intellectual lines. Ga o. ey was criticized by his own race for wanting to empower blacks and bring them back to their homeland, where they can populate and live without the poverty, violence, and racism in America. In an excerpt from the article Africa for Africans from Garveys paper, Negro World, he speaks on those who are opposed of his efforts to continue the Pan-African Movement. One editor and leader went so far as to say at his Pan- African Congress that American Negroes could not live in Africa, because the climate was too hot. All kinds of arguments have been adduced by these Negro intellectuals against the colonization of Africa by the black race. Some said that the black man would ultimately work out his existence alongside of the white man in countries founded and established by the latter (Garvey). Garveys written ideas of people going back to their original continents to restructure cultural peace are expressed in this excerpt from Negro World. He writes about his feelings towards the Negro intellectuals, he calls them, who are in denial and opposed to his ideas of an Afrocentric empowerment movement. The criticisms and oppositions from educated blacks in seeing themselves inherently different from Africans follows the issue of the growing distance between Africans and African Americans. It also presents the fear that white supremacists will have yet another reason for racial violence towards blacks, as expressed in a letter sent to Harry M. Daugherty, United States Attorney General. African American leaders opposed to Garveys plans to spread among Negroes distrust and hatred of all white people, write this source entitled, Garvey Must Go, in hopes to enforce Federal involvement to capture Garvey. This letter tries to make clear that not all blacks follow Garvey, to make known that these specific blacks in New York writing the letter are good and obedient civilians. This document describes Garvey as a foreign violent menace to all Americans and seems to want security from the whites in power so they dont begin to think that all blacks in America are preparing to rebel. And so the interdivision amongst blacks intellectually and economically, resulted in Garveys long-term goals positive way to advance Negro Americans in society, however, inspired religions, such s the Nation of Islam and Rastafari movement, and inspired more Afrocentric pride in the years of the Harlem Renaissance and further development of Americas black culture. The combination of Eurocentric and Afrocentric cultures began to create the African American culture. Meta Vaux Warrick Fuller was a celebrated black female artist and the daughter of a barber and hairdresser/wig maker in 1877. In Philadelphia, she was encouraged to use her creative mind to sculpt. As she became older and influenced by Eurocentric culture, she was able to get a decent education nd study art under sculptors in France. Upon arriving back to Philadelphia in the early 1900s-20s, she realized her art style became subdued. She began engaging in the African American experience by creating pieces rooted in black culture during the Harlem Renaissance. Her sculpture Ethiopia Awakening displayed a woman in African garments symbolized her appreciation for her African heritage and symbolized what was happening to the black community as a whole during the Renaissance and spread of Garveyism. Female artist Augusta Savage was also nfluenced by African American leaders like Garvey and W. E. B. DuBois, this black woman artist was inspirational during the period of black excellence in music, art, literature, and ideals†the Harlem Renaissance. Savage not only sculpted pieces that projected black culture, history, and united pride, but busts of both Garvey and DuBois, symbolizing their leadership as admirable and responsible for the flourishing of the Afrocentric black community in the 1920s. This racial consciousness and gratification for the black race benefitted in American society as well. This infant of African American culture embodied American education and values as well as African features and traditions. The cultural transformation of the Black Community during the late 1800s and early 1900s influenced all aspects of being black in America. By adapting Eurocentric values African Americans were able to fight and survive in American society. Madam CJ Walker, Marcus Garvey, and a united but divided black community, who were stripped of their kingdom, language, and customs during slavery, used the coexistence of Afro and Eurocentric ideals, traditions, and cultures to create one of their own.