Governance And Ethics In Global Environment Business Essay

Governance And Ethics In Global Environment Business Essay This Assignment is part of ABE post graduate diploma and it is based on the British Petroleum plc a well known natural oil and gas industries. This assignment covers three main areas which include: Corporate Strategy, Governance and Ethics in the Global Environment. Module for ABE (PGD) Business Management assignment. This Assignment highlights and discusses about the ethical and corporate governance factors which are currently affecting the BP. By analyzing internal andexternal resources, environment, governance and ethics of the companyin complete. Evaluating how effectively the BP is managing these factors to achieve its corporate goals. To address the three main areas the assignment has been divided into 4-5 parts: 2.0 INTRODUCTION British Petroleum p.l.c (formerly known as Anglo-Persian Oil Company) is a registered oil and natural gas industry established on 14th April 1909 in United Kingdom. According to BP ultimate (2012), during theearly 1900s the search for oil was began by the Shah of Iran which was discovered in the mid of 1908 and it was known as the first major find in the Middle East. Its also say that BP was considered as a subsidiary of Burmah Oil Company under the name of Anglo-Persian Oil Company (APOC). However in 1935 it became as the Anglo-Iranian oil company (AIOC). After 45 years of flourishing services, in 1954 the company got registered by the name today we know which is the British Petroleum p.l.c. Although BP does not have a specifically labeled mission statement BPhas published a statement identifying its core interest is said to be progressive, responsible, innovative and performance driven (About.com retail industry, 2012).Each of these words in the statement being the main target of the company, describes its missions. These in general states that Bp creates a user friendly environment between them and their customers and also Bp would like to ensure that the products that they invent would be environmental friendly. British Petroleum plc (BP) markets its products in more than  70 countries and operates  22,400 gas stations worldwide with over nearly 80,000 employees. Being the worlds  third-largest energy company and fourth-largest in terms of revenues  integrated oil concern, It is  vertically-integrated  and is active in every area of the oil and gas industry, including  exploration  and production,  refining,  distribution and marketing,  petrochemicals,  powergeneration  and  trading. It also has major  renewable energy  activities, including in  bio fuels,  hydrogen,  solar  and  wind power (Corporate Watch, n.d). Today BP explores for oil and gas in  30 countries and has proventhat they reserves approximately 18.1 billion barrels of oil equivalent. Moreover, according to Corporate Watch (n.d) they are the largest oil and gas producer in the US and also a top refiner, with stakes in 16 refineries, processing  4 million barrels of crude oil per day. 3.0 METHOD OF INVESTIGATION Main source of information regarding the various strategies adopted by BP to confront competitive and unforeseen challenges like, Gulf of Mexico oil spills disasters was acquired through. BPwebsites, publicationsand International Oil Spill Conference served as the main sources of information on government policies, regulations and laws. Oil drilling regulationsand policiesare taken fromUK, USAand international oil and energy reports and periodic statistical reports published online. Apart from this,Bp annual reports 2011,articles, journal articles, websites, books and magazines. 4.0Literature review Integrated approach to good governance in the interests of a wide range of stakeholdershaving regard to the fundamental principles of good financial, social, ethical and environmental practice. Other developments over the past 10 years which have propelled CSR onto thegovernance agenda include publication of the Association of British Insurers (ABI)Disclosure Guidelines on Socially Responsible Investment (2001) (see page 24 fordetails) and the UK Turnbull report: Internal Control, Guidance for Directors on the Combined Code (2001), the latter which asks companies to consider the following:Are the significant internal and external operational, financial, compliance and otherrisks identified and assessed on an ongoing basis? (Significant risks may, for example,include those related to market, credit, liquidity, technological, legal, health, safety andenvironmental, reputation, and business probity issues).5 In Canada, for example, the Canadian Council of Chief Executives (CCCE), seeking to instill public confidence in capital markets and the enterprise system on the heels of the corporate scandals, published a statement, Governance, Values and Competitiveness: A Commitment to Leadership in 2002. They laid out their views on corporate governance, Facts, findings, discussion and analysis with suitable sections and headings; 5.0 Findings Situational Analysis The oil industry has shown great resilience in the face of competitive disasters and the fast evolving (PESTLE): political, social and economic climates, technological environment, Legal and Ecological. According to Cooper et al 1994, it is state critical that the necessary information about the internal and external environment be gathered before a constructive criticism is made. He also argues that the findings are a very minimum to cover the bases of PESTLE investigation, that is to examine the political, economic, social, technological, legal and Ecological changes that may affect the company and the market. Governments provide and enforce the rules including regulations and policies due to Gulf of Mexico oil spill, government are drafting more laws and regulations would required that drilling perform independent audits and hazard assessment designed to reduce accidents caused by Technological and human errors(Alan Levin, USA TODAY Updated  5/10/2010 4:48 PM  ).See PESTLE in Appendix 1,2. 5.1 Political factors: These refer to government policy such as the degree of intervention in the economy BP had one of the biggest engineering, logistical and financial problems the oil industry had ever faced, but the company was up to the challenge. BP also faced a massive political problem, perhaps the biggest such crisis for an oil company operating in the United States since Teddy Roosevelt broke up John D. Rockefellers Standard Oil. BPs failure to grasp the fact that its biggest challenge was in Washington, not the Gulf, has led to a series of gaffes and strategic communications errors that have inflamed public opinion, fanned the political firestorm and dragged the companys share price ever lower the spill cleanup to cost under $30 billion BPs market capitalization is down $100 billion, on expectations it will face fines of up to $30 billion as well as curbs on its business in the United States, its most important market. BPs handling of the spill from a crisis management perspective will go down in history as one of the great examples of how to make a situation worse by bad communications, said Michael Gordon, of New York-based crisis PR firm Group Gordon Strategic Communications. It was a combination of a lack of transparency, a lack of straight talking and a lack of sensitivity to the victims. When youre managing an environmental disaster of this magnitude you not only have to manage the problem but also manage all the stakeholders. The company also failed to tackle its image as a serial safety and environmental offender. That was especially true in the United States where regulators had blamed both a 2005 refinery blast that killed 15 workers and pipeline leaks in Alaska in 2006 on cost-cutting. BPs inability to precisely describe the improvements it has made in its safety and operational culture took us by surprise, BP would have faced public anger and political pressure Dispute on Iran and other middle east countries causes instability on Stock market prices and the crude oil price will 5.2 Economic factors: These include interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the Foundations of Economics book economic change can have a major impact on a firms behavior. For example:                         higher interest rates may deter investment because it costs more to borrow                         a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency                         inflation may provoke higher wage demands from employees and raise costs                         higher national income growth may boost demand for a firms products Current economical crisis and Euro zone, economic crisis is affecting the BP corporative objective of the company 5.3 Technological factors: New technologies create new products and new processes to drills deep sea. This will increase efficiency and cost effective way to carried out BP business. Latest technology improves BP production and environmental friendly way to operate its business. 5.4 Environmental and Ecological factors: Environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. When an oil slick from a large oil spill reaches the beach, the oil coats and clings to every rock and grain of sand. If the oil washes into coastal marshes, mangrove forests or other wetlands, fibrous plants and grasses absorb the oil, which can damage the plants and make the whole area unsuitable as wildlife habitat.Other Ecological factors include the wildlife animal, marine environment, High Dolphin Deaths, fishing birds and lots of fishes move from that area. 5.4 Legal factors: These are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms behavior. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organizations actions. Legal changes can affect a firms costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service). 6.0 CORPORATE SOCIAL RESPONSIBILITY   After the Gulf of Mexico oil spilling incident BP investing billion on Corporate Social Responsibility (CSR) is now prominent and evident more than ever due to the emphasis laid on businesses regarding environmental, social and ethical issues. This is because over the recent years, there have been social, political, ecological and economic pressures on corporate management to pay attention on social and environmental consequences of corporate activities. These pressures motivated the corporate management to actively participate in a wide range of social welfare activities. CSR now-a-days covers almost all issues like the use of child labor; inequality of employment; environmental impact; involvement in local community; products safety; company cultures; brand image and reputation. Apart from this, BPis now disclosing these activities in their annual reports, and one of the parameters to judge the performance of a BP is CSR reporting. CSR is defined by Naylor (1999) and mentioned in the work of Douglas  et al.  (2004) as the obligation of managers to choose and act in ways that benefit both the interests of the organization and those of society as a whole. Fraser (2005) describes CSR as sustainable development which needs to be carried out by all the publicly held companies. These companies need to be responsible not only for their shareholders, but also its stake holders like the employees, customers, suppliers, government and non-governmental organizations. The speech made by BP Senior Advisor Charles Nicholson in 2002 at the CSR Europe General assembly meeting: The boundaries to corporate social responsibility are conceptual. A companys primary responsibility is to its shareholders, to its owners. The boundaries are ideological. A company is not a government. It is not elected. It has no popular mandate. It mustnt confuse its role with the role of others. The boundaries are practical. A company has limited resources, limited expertise and limited reach. A company is not a panacea, a cure-all. The boundaries are influenced by self-interest. Business thrives if the society in which it operates thrives. To neglect this is to put at risk the interests of our shareholders. And however you look at it the boundaries are constantly changing. What was a boundary a few years ago is now a starting point. Bp is leading, accepting responsibilities and demonstrating to building community is a source of human progress through its CSR. At the most basic level it means delivering what we promise. It means being transparent in what we do. It means practicing universal standards of behavior and care and applying the skills we have and engaging constructively in society. Im not implying that business has complete answers. It doesnt, and one of the reasons for taking part in events like this one today is to listen to open a dialogue. Every company will also draw boundaries reflecting its own circumstances, of course. For most the key factors are experience and values. At BP weve defined our values in a document called What We Stand For. 7.0 CORPORATE GOVERNANCE Jonathan Lister (2003), function of Corporate Governance,corporate governance encompasses the policies, initiatives and practices a corporation uses to accomplish its business goals and develop its infrastructure. The functions of corporate governance begin with a corporations shareholders and are passed to the elected board of directors, who are then in charge of developing governance strategies for the company as a whole. According to bp.com/section generic article,Good governance involves the clarity of roles and responsibilities, and the proper utilization of distinct skills and processes. The board is responsible for the direction and oversight of BP on behalf of shareholders and is accountable to them, as owners, for all aspects of BPs business. The board believes that good governance involves the clarity of roles and responsibilities, and the proper utilization of distinct skills and processes. The board therefore focuses on activities that enable it to promote shareholders interests, such as the active consideration of strategy, the monitoring of executive action, and ongoing board and executive management succession. To achieve this, it has developed and approved a set of corporate governance principles which set out its approach in this area. Most writings on governance situate its evolution within the backdrop of the corporate governance scandals at companies such as Enron, WorldCom and Lehman Brothers these two decade and this financial crises, which drove a concern for accountability and transparency amongst corporate leaders and regulators. This, coupled with growing shareholder activism, changing societal expectations about the role of corporations, and the globalization of capital markets, has resulted in a proliferation of governance principles and codes of conduct over the past 15 years. According to experts.blogs.lincoln.ac.uk, the impact of the BP oil spill in Gulf of Mexico has resulted in a fallen its share value by 45% and drop in its credit rating, downgraded by rating agencies such as Moodys, Standard and Poor and Fitch. There are fears that the claims from Americas worst environmental disaster could reach $100 billion.To cover the cost of the Gulf of Mexico oil spill BP has divest some of its noncore assets and reduced its capital investment to raise cash to compensation. The market has analyzed the impact of the Corporate Governance (CG) practices of BP and adjusted accordingly. Corporate governance is a vital issue for firms in the global market. To raise funds to finance their domestic and international growth requires firms to demonstrate strong CG credentials, so that investors do not discount their stock. To ensure all the corporate governance practices BP following one tire board system. 8.0 ETHICS One of the biggest environmental disasters happened around this time. The BP oil spill has left  undeniable impressions on how we view oil drilling and non-renewable sources of energy. This has had a knock-on effect on CSR, PR and marketing. The BP spill is possibly the most high-profile CSR/PR disaster of recent times. It is true that BP has had a questionable safety record, but the spill could have happened to any of the companies operating a deep sea rig. It is the nature of the business and demand for oil has made it profitable for oil companies to take these risks. Of course BP has accepted blame, but it has resulted in PR disasters for the company that has ultimately reflected on its CSR profile as well. A year after the spill BP is still gunning to get back into oil drilling the Gulf of Mexico, this time with higher safety standards. There are still questions about what these standards might be. Residents in the area have reported various health problems.  Of the 954 residents in seven coastal communities, almost half said they had experienced health problems like coughing, skin and eye irritation, or headaches that are consistent with common symptoms of chemical exposure. The aftermath of the spill is still being felt especially on the marine life in the region which in turn affects many livelihoods in the area.   Hundreds of very endangered Kemps Ridley sea turtles have been washing ashore and dead dolphins are showing up at  10 times the normal rate. Right after the spill,  over 6,000 birds, 600 sea turtles and 160 dolphins were killed. Traces of oil have been found in the larvae of blue crabs and researchers have found carcinogens in the water. These carcinogens have also  percolated  through the food chain affecting Gulf shrimp and fish which have been shown to contain toxic hydrocarbons. More than 20% of the endangered blue fintuna spawn  were killed in the spill. Despite the clean-up efforts, the  oil spill has damaged fragile coral reefs and dispersants being absorbed by zoo plankton and fish. The  effects  of the spill in the marshes and coastal areas will still be felt for years to come. A year on, there are still reports of tar balls being washed ashore which no one can verify because BP does not give reporters access to the beach. A year on and the biggest CSR disaster is that BP still has not issued any reports with real transparency regarding their clean-up efforts, compensation and concerns of safety in their operations. 9.0 CONCLUSIONS Despite domestic and international competition PB has managed to retain its position into the Market. This is mainly due to BP ability to successfully implementing Corporativegovernance, CSR/PR and other major changes necessary to overcome the challenges faced by Gulf of Mexico. Second factor is even after this unexpected incident BP had certain exclusivities like market position, investing alternative energy, investing CSR, changing its safety standards, improving corporate governance, taking blames and paying off damages to local and international community might improve its business image. As now BP has completely lost its remaining exclusivities it will face new challenges from Russia and most of the Middle East Countries overchanges in political and economical condition. Therefore good corporate strategy, CSR and good governance will maintain oil price and Alternative energy. 10.0 RECOMMENDATION According to OECD report 2011, There are perceived threats to the BP as well as oil company in future it need to be more proactive to these changes , which can be perceive by the knowledgeable among the corporate: Even after facing major chellges faced by BP, had some exclusivity, with those exclusivities lost it may have to come up with strategies to compete in those areas especially in risk management safety and environmentally friendly way drill. Challenges will keep emerging for this, Bp needs to adopt a learning organization concept to be proactive to change and keep ahead of competition. Increase investment on alternative energy like biofuels, wind and keep close tie on Middle East countries may achieve its corporate strategies. Investing on emerging economies like India, chain and Brazil will give competitive advantages in the near future. Making strategy and policies towards on efficient combustion engines and power train technologies, including hybridization, combined with use of biofuels, could offer the quickest and most effective pathway to a secure sustainability To meet future challenges BP is changing its strategy towards on ethics, CSR and improving its corporate governance. 11. Works Cited Andrew, C and Dirk, M. (2007) Business Ethics: Managing Corporate Citizenship and Sustainability in the age of Globalization. Linda K.Trevino Katherine A.Nelson (2010) Managing Business Ethics Fifth Edition http://www.bp.com/liveassets/bp_internet/globalbp/STAGING/global_assets/downloads/I/IC_bp_strategy_presentation_march_2010_slides.pdf http://www.pikeresearch.com/research/pike-pulse-report-biofuels-commercialization-by-oil-majors http://www.reuters.com/article/2012/03/20/idUS71431+20-Mar-2012+BW20120320 http://experts.blogs.lincoln.ac.uk/2010/06/21/corporate-governance-the-bp-saga-and-a-travesty-of-justice/ http://www.afaanz.org/openconf/2011/modules/request.php?module=oc_proceedingsaction=view.phpa=Accept+as+Paperid=224 http://www.zdnet.com/blog/projectfailures/bp-oil-spill-leadership-and-it-failure/9901 http://www.guardian.co.uk/environment/2010/jun/02/gulf-oil-deepwater-sink-bp http://www.smh.com.au/business/us40b-share-slumpinvestors-sue-bp-20100525-w9e0.html http://www2.accaglobal.com/documents/bpcs.pdf http://www.bbc.co.uk/news/world-us-canada-17243097 http://www.guardian.co.uk/environment/bp-oil-spill http://www.ibtimes.com/articles/308388/20120303/deepwater-horizon-oil-spill-disaster-bp-transocean.htm http://www.oil-rig-spills.com/ http://www.crrc.unh.edu/deepwater_horizon_blowout/The_Gulf_War_Were_there_any_heroes_in_the_B%5B1%5D.pdf http://www.crrc.unh.edu/publications/RDworkshop-report_FINAL2011.pdf http://www.afaanz.org/openconf/2011/modules/request.php?module=oc_proceedingsaction=view.phpa=Accept+as+Paperid=224 http://www.transworldnews.com/815818/c1/bp-plc-strategy-swot-and-corporate-finance-report-new-company-profile http://www.usatoday.com/money/industries/energy/2010-05-09-drilling_N.htm Big Oil Revenue Equals More Than 10% of U.S. GDP Big Oil Revenue Equals More Than 10% of U.S. GDP http://www.businesswire.com/news/home/20050615005396/en/BP-HSBC-RBS-UK-Companies-Awarded-Top http://topics.nytimes.com/top/news/business/energy-environment/oil-petroleum-and-gasoline/index.html http://www.guardian.co.uk/business/2010/nov/02/bp-oil-spill-costs-40-billion-dollars http://www.reuters.com/article/2011/10/17/us-bp-idUSTRE79G0WF20111017 http://www.guardian.co.uk/business/2010/jun/07/bp-and-corporate-responsibility http://www.smartplanet.com/blog/smart-takes/corporate-social-responsibility-learning-from-the-bp-oil-spill/8055 http://www.prnewswire.com/news-releases/bp-celebrates-25th-anniversary-of-the-bp-community-scholarship-program-159405915.html http://www.justmeans.com/CSR-Disasters-BP-Spill-A-Year-On/48568.html http://www.mallenbaker.net/csr/CSRfiles/bp.html http://www.npr.org/templates/story/story.php?storyId=13903534 11.0 SELF-EVALUATION I happen to come across lots of valuable research work carried by the respected scholar in this field throughout my effort to seek answers to various questions in this field that was not very clear. I noticed that when a difficult concept is assessed in various angles explored by scholars it widens the knowledge of that concept and gives an insight into the grounding of the concept in the field. I came across difficulties and the risk of operating business in global prospective, especially in field of oil business. Most importantly, how well ethicaland corporate governance will help to overcome the challenges facing modern business world.

My Teaching Philosophy Essay -- Philosophy of Teaching Education Essay

My Teaching Philosophy I believe that teaching is one of the most important professions in the world today. From the very beginning, until present time, teaching has been around. The book of Genesis speaks of God walking and talking with Adam in The Garden of Eden, God was teaching Adam. I will be proud to, one day, be a part of this great calling. There are many reasons why I want to be a teacher. Starting with the most important, I want to influence children positively with Christian perspectives that will help them achieve satisfaction in their life. I also would like the opportunity to coach. I believe coaches have more influence on children than teachers. I think this is true because sports are something that the child participates in because he/she chooses. For that reason, coaches are usually well respected by their athletes. Another reason I want to teach is for the opportunity to meet people. Teachers and coaches both have a great influence on children’s lives. I want to be a positive influence while helping prepare children for their future role in society. My father was a teacher and coach for many years and I am amazed at the lives he has touched. His students love him, even after not seeing him for years they remember the little sayings and quirks he said in the classroom. My father cared about the students, and he had a respect and trust for them all. Sometimes they didn’t deserve such trust, but I think the trust he put in them caused them to want to live up to his expectations. If I can be half the teacher that he was, I will consider myself a success. In addition, I want to be a teacher that instills Christian principles in all my students. I plan on being a lifetime learner by a... ... paid for our tuition, then, by paying taxes, paid for other people’s children to go to school also. I do not think that is fair, therefore, I plan on supporting the voucher system for all the United States. My decision to become a teacher was a major crossroads in my life. It took me a long time to decide which way to go, and now I feel great about the decision I have made. I have thought and prayed, and now I KNOW that this is what I want to do. I don’t want to be another teacher that does the same old thing. I want to be the best teacher that my students ever have. I want to be remembered by them and hopefully have a great influence in helping develop successful, happy adults. I understand the amazing responsibility and pressure that is placed on teachers and I am prepared to work hard and take on this great challenge of shaping our future generations.

International Trade and Finance Speech

Economics Paper 5 International Trade and Finance Speech Financial Pitfalls 2 Ladies and Gentlemen of the House, good afternoon to you all. I would like to thank you for the opportunity to speak to you this today on such an important topic – our economy. Our economy is in crises mode. To say that our economy has slowed down would be an understatement. The economy, to date, has taken a step backwards and the direction we are heading will take us from a record long-lasting recession to an all-out financial depression. Americans consume far more goods than we produce on a monthly basis.What that means, simply put, is that we continue to build more debt and get poorer with every passing month. Think of it like this – the average person goes through a certain amount of managed stress each day. When outside stress, or variables are added to daily stress it places more pressure on the body and mind. If this outside stress isn’t dealt with or managed, and as more is adde d, the body will either explode or shut down. Our economy is like the average person’s body. Most of us do not understand the current economic state of affairs.Not that we wouldn’t be able to comprehend the status, but most are unaware, as the media and national political heads are sheltering Americans from the truth and not diving in to the true issues at hand. We currently have a surplus of imports in our great nation. This should be of no surprise to us – countries that we currently hold the largest amount of deficit through imports are: †¢China †¢Mexico †¢Japan Financial Pitfalls 3 With the Chinese enjoying a spike in export capital over nearly past ten years, they have become a giant on the global economic scene.On a closer level, one that strikes the heart of every American man and woman, the impact of this surplus is being felt in our automotive industry – the true backbone of this great country. China has grown into an auto-parts mo nster as they have increased over 900 percent in exports since the beginning of the century. How are they doing this? By producing quality parts at a cheaper rate is nothing new but the Chinese are being criticized by many for benefitting from illegal currency manipulation which leads to unfair trade policies.These policies pose a real threat to American automotive jobs in the near future. International trade has a significant effect on the Gross Domestic Product. The GDP is the true market worth of officially recognized goods or services produced in a country. Think about this for a moment – if you were to go into a department store and found two shirts that were identical in color, material and stitch but one was priced ten dollars higher than the other. Which one would you choose? Easily you would pick the cheaper product and that is the issue American consumer’s face each day.Larger corporations have the ability to mass-produce products and pay their workers far le ss than those here in the states. They do this across the globe in what is called slave labor. As a result, there are fewer jobs available in the United States, more across the globe, and more goods being imported into the country and a more dramatic effect on our economy. Financial Pitfalls 4 We have exhausted our means to generate additional income for our nation through tariffs and sanctions on goods being brought into the country.The taxes levied on goods and the limits placed on incoming products and goods can impact and possibly obstruct international trade. This may also increase production costs and the possibly have an effect on the foreign exchange market. Exchange rates are driven for the most part by the amount of currency bought and sold either through speculation or international asset transactions in either services or goods. There are two types of exchange rates: short-term and long-term. The short-term exchange rates swing from minute to minute and are caused throug h changes in supply and demand for money as it is being sold from one country to another.Long-term rates are more directly affected through national monetary policies created by global governments. This has a global effect on economics. With our current national election trail heating up and the nation’s economic state of affairs in the center of discussion, there will be promises made by each candidate. The focus will not only be today’s economy but how we will move out of the red and back into the black. There are many ideas but in my mind it is simple as an old saying – you must spend money to make money. For us o make money and become financially independent, better yet, a global leader in economics, we must learn from our past. Financial Pitfalls 5 As President Bill Clinton discussed in a recent interview with Fortune Magazine, he laid out the three keys to bring our economy back – †¢Unleash the large amount of capital that is being held but not invested †¢Accelerate the resolution of the home mortgage crisis †¢Bring back manufacturing Sounds easy but it isn’t – this is not a short fix to a growing crisis but will take time for us to work together to climb back to the top. International Trade and Finance Speech International Trade and Finance Speech ECO372 March 25, 2013 The impact of international trade on the United States economy is quite significant. While historically the United States had been a nation that provided credit to other countries, it is now in a decline. This decline has caused the United States to become a major debtor, owing millions of dollars in interest to other countries. This is a result of an excess of importing, which has resulted in a surplus of imported goods. This surplus can be necessary to help offset the current deficits, but may stunt the economic growth of the United States.When there is a surplus of imported goods from foreign countries, the United States slips into a deficit. This deficit is created from the trade balance. The largest quantity of imported goods is the transportation equipment. Between 2006 and 2010, automobiles were the highest ranked import, followed by energy-related products. This surplus of imported vehicles resulted in the inability of American automobile manufacturer to produce comparably priced vehicles. This further resulted in U. S. automobile manufacturers needing to either receive government aid in some cases, or file bankruptcy and close for good.The closing of several automobile manufacturing companies and plants resulted in an increase in the unemployment rate, as displaced workers have been unable to find comparable work. International trade can also have a major impact on the Gross Domestic Products (GDP). It can affect the level at which imports and exports are operating, it can reduce consumer spending, and affect the unemployment rate. A higher rate of exports to imports will increase the GDP, while more importing will have the opposite effect. These fluctuations in trading have negative and positive effects on the U.S. economy. The more the United States exports, the more income it is gaining. This is good for the rate of employment, as the higher demand for U. S. products requires more producti vity. Trading deficits also have an impact on consumer spending. When consumer spending is high, trading deficit percentages increase. The opposite is true when consumer spending is low. Domestic import markets also increase as the value of the American dollar increases. International relations and trade are affected by tariffs and quotas implemented by theUnited States government. Tariffs and quotas allow the U. S. to differentiate between the domestic supply and the world supply. Due to protection from the government, domestic markets need not fear competition from foreign producers who provide higher quality, lower cost products. However, too many restrictions on imports could cause a decline in productive trade with foreign countries. These other countries could institute tariffs on U. S. goods which would result in the United States having to pay higher prices for imports.In addition ot all of this, international trading relationships remain unaffected, as free trade agreements allow countries to buy and sell goods at fair market value. Another factor in international trade are foreign exchange rates. Foreign exchange rates are the rate one country’s currency may be exchanged for the currency of another country. It is an economic measure implemented by the government to ensure equilibrium of trading activities. A decline in the exchange rate decreases a country’s purchasing power.Foreign exchange rates are affected by the interest rates imposed by a country for currencies as a result of demand. These interest rates are managed by the central banks of each country, in the United States this would be the Federal Reserve, or the FED. Exchange rates are determined by several factors, interest rates, productivity, inflation and debt are all factors in determining the exchange rate of any given country. Since the 1970’s, when president Nixon took steps to fully normalize relations between the United States and China, China has become one of the major import countries for the United States.While it would seem that the United States could impose many restrictions on trade with China, many would argue that it would be very unwise. A restriction on imports from China could be very detrimental to the United States economy. New restrictions would not only prompt monetary action from China, such as higher prices, it could also prompt civil actions, perhaps even war. Free trade allows countries to engage in trade without additional tariffs or quotas. If China is not imposed with high tariffs and quotas, the United States government knows that the savings will be passed on to the consumers.Limiting the amount of goods imported from china would also greatly limit the variety of products available to U. S. consumers. This would reduce profit and lead to an increase in unemployment. This could continue on the result in an unstable United States economy. In conclusion, international trade has a major impact on the economy of the U nited States. Historically the United States has been a major power in international trade and finance. Currently, the U. S. is in a decline which has cause some major debts.An increase in imports, a decrease in the GDP and fluctuations in the exchange rate have led us to being indebted to many countries while we work though the current recession. Resources: Colander, D. C. (2010). Macroeconomics (8th ed. ). Boston, MA: McGraw-Hill/Irwin. McTeer, B. (2008). The Impact of Foreign Trade on the Economy. Retrieved from http://www. economix. blogs. nytimes. com U. S. Consumption Spent on Foreign Imported Goods. (2011). Retrieved from http://www. americawakeup. net International Trade and Finance Speech International Trade and Finance Speech ECO/372 International Trade and Finance Speech Macroeconomics consists of the large scale economic factors such as interest rates and national productivity. International trade, finance and exchange rates are a large part of this study. Today, we will dive into the basic definitions and descriptions of simple terms and concepts as they relate to macroeconomics. â€Å"The trade balance is the difference between a country’s exports and imports† (Colander, 2010).When a country is exporting more than they are importing a surplus is created, so there is more production than consumption. The opposite is true for a trade deficit. A country that imports more than it exports is running in a deficit; consumption is more than production. An example of a product in the United States with a surplus is oil. Seven years ago the U. S. imported about two-thirds of their oil consumption. By 2014 it is expected that the U. S. will only import 6 billi on barrels of crude oil per day; this is about one-third of what the country uses and by 2020 U. S. il production will exceed Saudi Arabia’s (Phillips, 2010). The problem is that the oil produced in the U. S. is high-quality crude and the oil imported is heavy, sour oil. Since the refineries are currently equipped to refine the heavier oil the U. S. has a surplus of the high-quality crude. One would expect lower oil prices with the surplus, but as the current gas prices reflect this is not the case. While the process and the politics involved have many components not discussed here the crux of the situation is that a surplus of an import can cause business and domestic consumers to suffer.Gross Domestic Product (GDP) is the value of all goods and services produced in one country during a one year period. GDP is made up of consumption of goods (expected to last three or more years such as food and clothing), services, government expenditures (schools, upkeep of roads, and mili tary expenses), residential and non-residential spending, and business inventories. The equation is all of the items listed less ay imports to other countries. International trade influences the GDP by expanding markets with imported goods and services that are either not available in the U.S. or are less expensive if imported. Some of the goods imported are coffee, bananas, oil, and automobiles from Germany and Japan. The imports of these goods increase the economic GDP, but also allow the U. S. to export products to other countries. A result of this economic expansion and diversity of goods and services is competitive pricing and an increase in the market competition among producers providing domestic consumers with less expensive products. A major advantage of trading is the ability of certain producers to concentrate or specialize in certain goods.A disadvantage would be the government imposition of restrictions and limitations to protect the domestic production and market. Gove rnments have imposed taxes on trading transactions which increases the cost of importation. Many governments also restrict or limit the import of goods and service to their country. These impositions are known as a tariff or quota. Tariffs are taxes governments place on international traded goods – generally imports (Colander, 2010). They are most commonly used to restrict international trade and promote domestically produced goods.Quotas are put in place for the same reason but rather than taxing imports the quantities of product are limited. Tariffs affect trade patterns, but they also create revenue for the government often offsetting the loss of consumer surplus (â€Å"Impact of Trade Tariff Cuts: Long-Series Historical Evidence†,  2013). The exchange rates are â€Å"the price of one country’s currency in terms of another’s currency† (Colander, 2010). To understand the determination of an exchange rate one needs to think of currency as just a nother good (Colander, 2010).Consumers demand other’s countries’ currencies to buy goods and assets in that country. Foreign exchange rates are determined by supply and demand of goods. An example to understand how the demand-supply balance moves is to examine the dollar vs. rupee exchange. The dollar/rupee exchange rate will depend on how the demand-supply balance moves. When the demand for U. S. dollars in India rises and supply does not rise correspondingly, each dollar will cost more rupees to buy.Exchange rates are in a constant state of fluctuation because of the countless activities of the foreign exchange market. China currently supplies the U. S. and many other countries with goods. It would be difficult to discontinue because â€Å"buying from China is in fact buying American† (Chen, 2011). Chen, 2011 reported that America imported $374 billion of goods and services from China in 2010 and exported $115 billion to China. This created a trade deficit of $260 billion. But if calculations are based on alue-added contributions by the two countries, America actually has a trade surplus of $70 billion. One should think about the jobs that are created from the importing of goods from China rather than the jobs it is taking away. Apple employs thousands of associates in America to sell iPhones, Target employees over 350,000 American workers who sell Chinese imports, and thousands of UPS and FedEx workers deliver Dell computers, Hasbro toys, and Nike shoes to American families (Chen, 2011).Thank you for your time and I hope the information provided gives a high level understanding of international trade and finance as it relates to the current state of the U. S. macro economy. References Colander, D. C. (2010). Macroeconomics (8th Ed. ). Retrieved from The University of Phoenix eBook Collection. Phillips, M. (2013). Falling U. S. Oil Imports Will Reshape the World Crude Market. Retrieved from http://www. businessweek. com/articles/2013-01- 16/falling-u-dot-s-dot-oil-imports-will-reshape-the-world-crude-market Impact of Trade Tariff Cuts: Long-Series Historical Evidence. 2013). Retrieved from http://www. globalpolicyjournal. com/articles/world-economy-trade-and-finance/impact-trade-tariff-cuts-long-series-historical-evidence Alden, E. (2013). A U. S. -China â€Å"Trade War†: Time to Abolish a Silly Notion. Retrieved from http://thediplomat. com/pacific-money/2012/10/31/a-u-s-china-trade-war-time-to-abolish-a-silly-notion/ Chen, B. (2011). Buying From China Is in Fact Buying American. Retrieved from http://www. forbes. com/sites/forbesleadershipforum/2011/12/22/buying-from-china-is-in-fact-buying-american/

How to write a business essay - Free Essay Example

Sample details Pages: 3 Words: 973 Downloads: 6 Date added: 2017/06/26 Category Education Essay Type Essay any type Did you like this example? HOW TO WRITE A BUSINESS ESSAY Introduction Business Essays cover a variety of subjects. You could be asked to provide Essays on areas as diverse as finance, marketing, corporate ethics, leadership, human resources, production, product development and a wide range of other topics. Essays also take many forms. Don’t waste time! Our writers will create an original "How to write a business essay" essay for you Create order Your tutor, examiner, university entrance assessor, boss or whoever sets the Brief (the Client) could ask you to illustrate, discuss, analyse, critique, interpret, review, or explain the subject matter. The Client will be using the Essay to assess and evaluate your business knowledge and understanding. How effectively you assimilate the Brief, research the issues and ultimately provide an Essay of insight and originality will reflect on this judgement. This guide covers the steps for preparing a Business Essay for your Client. It is a general framework and may not cover every element for a specific piece of work. Some steps could be more important than others dependant on your interpretation of the Brief and the Clients requirements. Plan and Prepare This is the most critical step in the process. A clear understanding of the subject matter, the key elements of the Brief and the Clients requirements is essential for preparing a final product worthy of your expertise. These fi rst steps should be revisited regularly throughout the preparation of the Essay. Understand the Brief Identify what the Client is looking for. Try and get into the Clients mind to understand the critical issues. If you are unsure about any part of the Brief, ask for guidance. Clearly define the required outcomes. A short statement of objectives will help you concentrate on the main issues. Define the key elements and essential points the Essay will cover. Review any course notes or projects the Client has identified as relevant for this assignment. Plan an outline for the Essay structure with bullet point notes Think about the Introduction carefully. Note what should be covered. Outline the body of the report with sections for each major issue. Decide which topics and arguments require further research. Note the key points to be covered in the Summary/Observations with the focus on outcomes and objectives. Decide if any Conclusions are required. Develop timelines for each stage to achieve the submission deadline. Conduct the research Plan the research carefully. Read around the subject; develop the arguments and list the issues and facts to be included. Define those facts which are common knowledge and decide on the ideas or opinions that need to be appropriately referenced. Search for relevant, credible sources from professionals, scholars and academics. Don’t use popular websites or unattributed articles. Look for research or reports of current corporate issues for topicality and relevance. Use live interviews where possible. Use current material with the latest editions and revisions. A Brief with an historical context will require references from the relevant period. Clearly and correctly quote and attribute views and ideas that are not your own. Don’t plagiarise Organise, collate and note your sources for future reference and bibliography. Marshal and Analyse the Facts and Arguments Now is the time to develop the Essay in detail. Revisit and revise the sections in the original outline. Develop the topics for the body of the Essay and write the detailed draft, section by section. Develop the structure and main body of the Essay Decide the important arguments and opinions for inclusion in the body of the Essay. Identify any relevant examples from your own personal business experience for inclusion if pertinent. Prepare sections and paragraphs with a logical flow. Develop appropriate transitions from paragraph to paragraph and section to section. Write the detailed content in draft Strive for originality in approach and content. Marshall the facts to develop structured, logical, cogent observations and arguments. Make objective assessments based on verifiable, factual information. Include the use of diagrams, tables and graphics if it helps interpretation and understanding. Use short, simple sentences for clarity of expression. Acronyms should be in brackets initially, e.g. European Central Bank (ECB). Develop the Summary, Observations and/or Conclusion. Write the Introduction covering the required outcomes, critical issues addressed, key facts and arguments with a short summary of the observations and/or conclusions. Exclude subjectivity, hubris or emotive language. Avoid buzz-words and overly technical language. Revise, Edit and Submit If time allows take a break before this step of the process. Revision requires concentration and a fresh mind. You will want to ensure facts, content and sources are logically presented and referenced. This is also the stage where grammar and style are checked for accuracy and consistency and the layout and appearance of the Essay is determined. Finalise and submit your Essay and look for feedback from the Client to help you improve. Check for logical flow and accuracy of content Check for clarity, originality and transitional flow of sections and paragraphs. Reread the Introduction and Summary/Observations/Conclusions to ensure logic is maintained. Make sure the outcomes are clear and concisely stated. Rewrite and revise paragraphs and sections as required. Grammatical accuracy Check the correct use of grammar, spelling and punctuation. Check for syntax errors such as mixed tenses, passive voice, etc. Layout and style Check the format meets the Client’s instructions or customary style. Finalise title page, contents page and section or chapter headings. Format references and bibliography using the prescribed style, Harvard, Oxford APA etc Finalise layout and presentation with wide margins for reader’s notes and comments. Final proof reading Review the Essay with the Client’s eyes and revise as necessary. Ask for constructive comments from knowledgeable friends or colleagues. Finalise and submit Change from draft to final form. Submit the Essay as instructed. Seek out constructive comments/criticism from Client. Compare your Essay with any models provided. Identify areas for improvement and note for future reference. 1 ACADEMIC KNOWLEDGE BRIEF 214116