ETHICAL AND LEGAL ISSUES IN GLOBAL BUSINESS

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ETHICAL AND LEGAL ISSUES IN GLOBAL BUSINESS

• CHAPTER 1
• CAPITALISM AND THE ROLE OF THE GOVERNMENT

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KEY POINTS

• Explore the interrelationship of markets and
  government
• Evaluate capitalism in theory and practice
• Evaluate collectivism in theory and practice
• Evaluate a mixed economy

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PURPOSE OF THIS TEXT

• Our purpose is to consider two questions
• 1. What is the proper role of business in the
  United States and global society?
• 2. How much, if any, government regulation of
  business is necessary to secure that role?

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Full Range of the Economic Spectrum

• Free market approach on the extreme right.
• Command Economy principles on the far left.
• Mixed economy, a combination of markets and rules
  in the center.

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What combination of capitalism and government
best serve the worlds needs?
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FREE MARKET APPROACH

• Limited regulation
• Limited laws
• Wisdom of market controls
• Very limited forms of government

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PRIVATIZATIONPART I

• Definition
• 1. Government contracting out to a private firm.
• 2. The sale of public assets, such as an
  airport, to a private purchaser.

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PRIVATIZATIONPART II

• EXAMPLES OF PRIVATIZATION
• Welfare Systems
• Prisons
• Schools
• REVERSE PRIVATIZATION
• Aviation Security

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COMMAND ECONOMY

• Government controls all levels of economy

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COLLECTIVISM

• An economic philosophy that features economic
  cooperation
• Includes both communism and socialism

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SOCIALIST GOALS

• Liberty
• Social Welfare
• Fulfilling Work
• Community
• Equality
• Rationality

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MIXED ECONOMY

• The United States
• Actually, most of the world

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MIXED ECONOMY IN AMERICA

• Q. How well does Americas version work?

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CURRENT STATUS OF THE U.S

• Overall Quality of Life
• Are we succeeding?

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TOO MUCH CAPITALISM?

• Are poverty, inequality, crime and corporate
  scandal such as the Enron case inevitable
  by-products of a selfish, greedy market?

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PURPOSE OF THIS TEXT

• Our purpose is to consider two questions
• 1. What is the proper role of business in the
  global society?
• 2. How much, if any, government regulation of
  business is necessary to secure that role?