Case and Questions Essay

| August 28, 2015

No APA Or No Source answer the question separate and Number the questions 1-2-3- use two pages for the questions and at least 3 paragraphs for each questions or more 1. Why does Patricia Werhane in “Exporting Mental Models: Global Capitalism in the Twenty-First Century” argue for caution in extending Western style capitalism abroad? Explain. Do you agree with this approach? Why? 2. According to Hess and Dunfee (“Taking Responsibility for Bribery: The Multinational Corporation’s Role in Combating Corruption,” bribery undermines human rights. Why do they believe this is the case? Do you agree? Defend or criticize this conclusion. Explain your own thoughts on bribery and its effect on human rights and other concerns. 3. Do you agree with Ian Maitland’s argument (in “The Great Non-Debate Over International Sweatshops” that improving health and safety conditions and improving wages will cause greater harm than good? Explain how and why you agree or disagree with the argument. Do the Case on the third page Give yours thoughts on third page for the Case Case Topic: “Denise Roberts is an international tax accountant with the Aikeo Corporation of Japan. Her job at the U.S. company headquarters in Los Angeles is to identify all tax credits and incentives allowed by law within the U.S. tax system and to monitor exchange and tariff rates among different countries. She also monitors and fixes transfer prices, that is, the prices set on products manufactured and transferred to other units within the company. Most of Aikeo’s products (VCRs) are made in Taiwan and Japan and shipped to a free trade zone in Ensenada for assembly by Mexican workers. Over the years the VCR industry has become extremely competitive, with most companies striving to make the lowest-cost products with the highest quality possible. Many companies, including Aikeo, have closed older production plants in favor of facilities in countries with cheaper labor. Consequently, many Taiwanese and Japanese firms are having difficulty competing with companies from low-wage-rate countries such as the Philippines, Malaysia, and China. Plant closings in Japan and Taiwan have resulted in some demonstrations against Aikeo. In addition, there have been allegations that convicts have been used to make some lines of Aikeo’s VCRs, although Aikeo has officially denied this. However, Denise knows, based on the location of the plants and their actual production costs, that the allegations are probably true. A letter and phone call from Japan directed her to avoid discussing this internal matter with anyone. Denise’s performance reviews had been excellent, and she was put in charge of all U.S. transactions. One day while Denise was looking at some computer printouts, she discovered a significant difference between the prices of Aikeo VCRs going to Japan and those being sold in the United States. The difference suggested that Aikeo was dumping VCRs in the United States. In other words, the company was selling VCRs in the U.S. for less than it sold them in Japan, even though its actual costs were higher for the U.S. market. When Denise spoke to her counterpart in Japan, she learned that the company was indeed dumping VCRs. She warned that the company could be in violation of the U.S. Sherman Antitrust and Robinson-Patman Acts if its intent was to reduce competition in the United States. After listening to her concerns, her superior in Japan asked Denise to have her department calculate the approximate cost of penalties associated with the violations. He also asked Ron Jones, Aikeo’s U.S. attorney, to calculate a time range of when such a tactic might be discovered and how long it might take to get an injunction that would halt Aikeo’s sales. A few days later, Denise sent her findings to her Japanese counterpart. Several weeks went by before she received a reply, which was that Aikeo would continue the practice and wait. In the meantime, Aikeo ordered the U.S. marketing department to begin selling low-end VCRs to unauthorized dealers. When Denise asked why, she was told that a newer line would replace the old one and the company wanted to clear out inventory. A new line was introduced several months later, but it was at the highest, not the lowest, end of Aikeo’s product line. Six months later, Japanese management requested that Denise instruct the marketing department to use the same strategy with Aikeo’s middle-range line of VCRs. Denise received an exceptional rating in her next evaluation. Although she anticipated a promotion after the review, one was not forthcoming. Another six months went by, with another exceptional review, but still no mention of a promotion. When she questioned her counterpart in Japan, he had no clear answers. When Denise questioned others in the company, there was no response. After another six months and another exceptional performance review, Denise called Japan and asked for a clear answer about her status in the company. She was told to be patient. Within a few weeks, Denise received a fax from Japan requesting that she visit Aikeo corporate headquarters. When Denise arrived in Japan, her itinerary had been planned for the next week. Finally, after many sightseeing tours and dinners, she was ushered into her counterpart’s office. He was very gracious but did not really say anything of substance. Denise finally lost her self-control and demanded to know why she was talking to her counterpart rather than to his superior. He appeared frustrated and upset with Denise’s reaction. He tried to explain to her that things were done differently in Japanese culture. “I’ve been patient for over two years concerning my promotion,” Denise replied. “I would like to understand why I haven’t received one and why I can’t see your superior.” He explained that his superiors had assigned Denise to him and that he was her superior. Moreover, his superiors still found a woman in such a high position “uncomfortable.” “You see,” he said, “they have not been Westernized, and they find American ways of dealing with people unconventional relative to Japanese ways. It may be many more years before my superiors can accept a woman having so much authority. But Denise, please be patient. In time, they will change.” What are your thoughts on

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