RELIGION AND INTERNATIONAL BUSINESS

Religion and business. Retrieved May 13, 2011. From: http://www.anneofcarversville.com/world/21st-century-politics-religion-rules.html

1. How can we create an ethical relationship between religion and business so that they may cooperate towards a more sustainable and respectful development of life?

I belief that the best way to create an ethical relationship between religion and business is by teaching both sides that the other one has their own rules, norms, values and that they must be respected. This would be the first step to guarantee a sustainable and respectful development of life.

2. Can you imagine a world without religion where everyone would be trying to get immediate satisfaction to their individual needs?

A world without religion might bring even more conflict than we have now, since religion influences different aspects of a person’s life like the way of spending the money, the kind of food they are able to eat or their main purpose of life. So without all of this people might get involve in a fight of personal interests.

What makes world interesting is its diversity, but without religion the learning of other cultures would not be interesting and amusing as if the religion is part of it.

3. Religion can create networks of trust and familiarity that facilitates economic transactions. Can you name other positive aspects of this relationship?
Fafchamps’ (2003) recent study on Africa finds that the sharing of religious cultures still enhances trust and enables trade.

Other positive aspects that religion often promotes are honesty, diligence and compromise which are "economically friendly" behaviors that enable people to engage in mutually beneficial specialization and exchange.

Also people who share a certain religious culture may be able to overcome some informational and reputational barriers to international exchange, thereby expanding trade

It’s important to mention that religion's positive and negative cultural influences on economic activity in general and on international trade in particular are likely to differ from one religion to another since each religion has its unique set of incentives and rules of behavior.

Religion-World. Retrieved May 13, 2011. From: http://almadormida.blogspot.com/2008/10/la-religin-y-yo.html

References:

- Joshua J. Lewer, Hendrik van den Berg. (October 2007). Religion and International Trade: Does The Sharing of a Religious Culture Facilitate The Formation of Trade Networks?. Retrieved May 13, 2011. From: http://findarticles.com/p/articles/mi_m0254/is_4_66/ai_n24246351/pg_9/?tag=mantle_skin;content

- Joshua J. Lewer and Hendrik Van den Berg. (May 2008). The Impact Of Religion On International Trade. Retrieved May 13, 2011. From: http://www.afrik-news.com/article13606.html

MANAGING DIVERSITY

According to Rosen and Digh (2001), Globalization, The use of multiculturalism as a competitive advantage can actualize these. Diversity offers benefits like creativity, resistance against lawsuits, political favorers, better decisions, and better knowledge of markets.

Sylvia Jade (January 2010). Diversity. Retrieved May 12, 2011. From:http://www.flickr.com/photos/45889790@N06/4242631830

The awareness of cultural differences and recognizing where cultural differences are at work is the first step toward understanding each other and establishing a positive working environment.

What are the consequences of Ignoring Diveristy in organizations?

Ignoring diversity costs time, money and efficiency. Some of the consequences can include unhealthy tensions, loss of productivity because of increased conflict, inability to retain and mantain talented people of different cultures, complaints and legal actions and incapacity to retain valuable employees resulting in loss of investments on recruitment and training. 

Managing Workforce Diversity. Retrieved May 12, 2011. From: http://worldlinksgpa.com/training/train2.php

Video:

JWA.Cultural Diversity in the Workplace. (July 2008). Retrieved May 13, 2011. From: http://www.youtube.com/watch?v=bChZfFG5RqA 

 References:

- UCSF (University of California, San Francisco). Managing Diversity in the Workplace. Retrieved May 12, 2011. From: http://ucsfhr.ucsf.edu/index.php/pubs/hrguidearticle/chapter-12-managing-diversity-in-the-workplace/#683

- Neetu Munjal, Madhvi Sharma. (May 2010). Managing Multiculturalism & Diversity in Organizations. Retrieved May 12, 2011. From: http://www.indianmba.com/Faculty_Column/FC1161/fc1161.html

Virtual Teams

Virtual team members are physically separated by time or space and those virtual team members primarily interact electronically.

According to David Gould some benefits of virtual teams include the following:

- People can work from anywhere at any time.

- People can be recruited for their competencies, not just physical location.

- Expenses associated with travel, lodging, parking, and leasing or owning a building may be reduced and sometimes eliminated.

-There is no commute time.

Virtual Teams (February 2010). Retrieved May 10, 2011. From: http://www.youtube.com/watch?v=27Y5WToAeA0

Example:

A Travel Agency that has operations in India and Brazil offers a lot of options to their clients since it has alliances with all the airlines like Avianca Taca-Colombia/American Airlines- EE.UU/ Iberia- España/ Airfrance- Francia, among others. To know if there are seats available the agency keep in touch directly with all of them by mail, and when an airline thinks that is necessary to give an instruction to the agency, they just communicate by videoconference or instant messaging. Is difficult sometimes to understan what the other people is trying to say when he/she writes a mail but the advantages of videoconference is that your are talking "face to face" with the other person.

INSEAD, virtual teams (April 2011). Retreived May 10, 2011. From: http://www.youtube.com/watch?v=-GjnG__QLkc

References:
- Gould David, Virtual Teams (June 2006). Retrieved May 10, 2011. From: http://www.seanet.com/~daveg/vrteams.htm
- Time Management Guide. Virtual Team Benefits and Challenges. (2005). Retrieved May 10, 2011. From: http://www.time-management-guide.com/virtual-team.html

COMMUNICATION

Communication skills. Types of non verbal communications. (march 2010). Retrieved May 7, 2011. From: http://www.communication-type.com/types-of-nonverbal-communication-2/

The following video explains in a different way Non-verbal communication and shows some examples of how it is used:

Austin Werner, Ben Allman, Sam Allman, Non-verbal communication (September 2009). Retrieved May 7, 2011. From: http://www.youtube.com/watch?v=GsjZrkm-2Tk

DISCUSSION: Which ones are the main Cultural Differences in Non-verbal Communication?

Different countries have different ways of communicating; issues of cultural background, regional variations, gender and personal idiolect come into play in non-verbal communication.

Some examples of gestures that may not translate include pointing. Pointing with a single finger is considered rude in many Asian cultures, is better to indicate direction by gesturing with a whole hand. Even among those cultures that use a single finger to point, there is variation. In the US, americans use the index finger to point. In Germany, using the pinky to point is common. The gesture that Americans use to indicate everything is okay is a very offensive gesture in many parts of the world.

Skillful Communications. (march 2010). Retrieved May 6, 2011. From:  http://skillfullydone.com/non-verbal-communication-interview

Eye contact can indicate a degree of attention or interest. It can be used to indicate attraction, to establish power, indicate emotion, and influence attitude. In some western cultures they perceive direct eye contact as a positive trait. But in certain parts of Africa, Latin America, and parts of Asia avoiding eye contact is the way to show respect. Extended eye-contact in these cultures may be taken as disrespectful or a challenge to authority.

Physical contact: Different cultures have different rules for physical contact. Norms for the type of contact, the length of contact and the persons involved in contact vary.

Upon encountering an individual, even a stranger, Americans shaking hands as the norms. In certain situations, hugging upon meeting is acceptable. Islamic cultures generally do not approve of touching between genders, though many Islamic men who do business internationally have learned to adopt more western customs in dealing with women. Also many Asian cultures do not allow touching on the head as it houses the soul.

Facial expressions: All cultures seem to express with the same basic facial expressions the basic emotions of anger, grief, happiness and fear. But the acceptability of such expression varies from culture to culture. Many Asian cultures don't easily express anger or grief on their faces, while Mediterranean Latin and Arabic cultures permit open expressions of grief.

Communication. Retrieved May 6, 2011. From: http://jio2665.files.wordpress.com/2011/04/non-verbal-communication-examples.jpg

References:
- Naphtalia Leba. (July 2010). Understanding Cultural Differences in Non-verbal Communications. Retrieved May 6, 2011. From: http://www.associatedcontent.com/article/5568614/understanding_cultural_differences.html?cat=16
- Vermont Department of Health. Cultural Differences in Non-verbal Communication. Retrieved May 7, 2011. From: http://healthvermont.gov/family/toolkit/tools%5CF-6%20Cultural%20Differences%20in%20Nonverbal%20Communic.pdf

EXPATRIATE ASSIGNMENT (EA) AND OVERSEAS EXPERIENCES (OE)

Expatriate assignment. Retrieved May 3, 2011. From: http://eslabloggers.blogspot.com/

Nowadays expatriate assignments have become a common practice for different kinds of multinational companies, especially when they have foreign operations or want to have different strategies to expand market share in a specific country.

EA main characteristics:

-          The initiative for the international experience comes primarily from a company which operates internationally with subsidiaries.

-          Goals: company projects.

-          For the individual the causes of success or failure of AE are attributed to the company and the remedies for failure are in the company´s hands.

Overseas experience. Retrieved May 3, 2011. From: http://www.careerdynamix.com/ServicesBrIndividuals/OverseasExperience/tabid/109/Default.aspx

OE main characteristics:

-          The initiative for the international experience comes from the individual.

-          Cultural experience as important as work, Geographical mobility, Curiosity- driven, Personal learning agendas, Individual is self-supporting, Weak company attachments.

-          OE is typically pursued out of a personal motivation to explore and learn.

DISCUSSION: Characterize one country and its main immigrants; describe the types of labor they perform and the living conditions of them.

Wellington, capital of New Zealand. Retrieved May 3, 2011. From: http://www.travelpod.com/ad/Capital_E-Wellington

New Zealand

 Recognized as one of the countries where immigrants have great opportunities, foreigners account for 16% of the population, mainly from East Asia and Oceania.

- Opportunities: New Zealand offers good job opportunities to immigrants, given the economic good of the country, with unemployment at just 3.5%. Need professionals in education and health.

 - Work-life balance: the great benefits for immigrants who arrive in New Zealand are that the work there is very flexible.

At present, New Zealand needs more helping hands in the fields of health care, computer technology, management and agriculture. Working in New Zealand is financially rewarding since it is one of the top countries in the world offering high employee salaries. This is the main reason why most people enjoy high quality living and can afford pricey items and commodities.

References:

- Jose Marc Castro, (August 2009). Cost of living in New Zealand. Retrieved May 3, 2011 from:  http://www.expatforum.com/articles/cost-of-living/cost-of-living-in-new-zealand.html

- Immigration in New Zealand. Retrieved May 3, 2011 from: http://www.immigration.govt.nz/

- Inkson, Kerr et al. 1999. Expatriate Assignments and Overseas Experience-contrasting models of international human resource development. Journal of world business. 34: 351-368.  

KNOWLEDGE MANAGEMENT

“Information regardless of how expensive it was to create it can be replicated and shared at little or no cost.” Thomas Jefferson

According to the business dictionary knowledge management are strategies and processes designed to identify, capture, structure, value, leverage, and share an organization's intellectual assets to enhance its performance and competitiveness.

That’s why people´s knowledge is quite important, but keeping this in organizations is even more important.

Some ways of keeping knowledge inside the organization is by using: 1) blogs, 2) knowledge maps, 3) wikis, 4) Forums, 5) knowledge café, among other techniques.

Knowledge management. Retrieved April 19,2011, from: http://www.informationarchitected.com/training/integrated-knowledge-management/

The following video show´s in more detail how knowledge management function:

Source: Lee Bryant, (July,2008). Retrieved April 19,2011. From:  http://www.youtube.com/watch?v=LYq9jmVtQU8

References:

- Marilyn Leask, Caren Lee, Tim Milner, Michael Norton and Dimple Rathod. (March 2008). Knowledge management tools and techniques. pag 9-19. Information retrieved from http://www.idea.gov.uk/idk/aio/8595069

- Knowledge Management- Emerging Perspectives. Retrieved April 19, 2011. From: http://www.systems-thinking.org/kmgmt/kmgmt.htm#references

Nowadays Yoga is a very interesting tool for organizations to motivate and relax their employees. There are studies showing that stress at work affects the European Union to 41 million people and this causes a loss of 20,000 million euros per year.

A yoga center name YogaWork said that improving the physical, mental, intellectual and emotional parts of an individual leads to an improvement on the quality of the company to which he belongs. The following are some benefits that yoga gives to organizations when they used this technique with employees:

       ·Improve concentration, helping to make decisions more efficiently.

·Reduces, prevents and helps manage stress allowing an improvement in mood and a more pleasant work environment.

·Stimulates creativity.

·Improves cognitive performance and employment.

·Maximize employee productivity.

·Generates a more harmonious working environment, motivating employees to work more relaxed and that the working day more bearable.

·Decreases and prevents disease, reducing absenteeism, licenses and medical costs.

·Improving the management of stress and anxiety, resulting in greater productivity at work and the quality of life of the individual. It also helps to prevent stress.

·Eliminates the ill effects of sedentary corporate life: relieves tension of lumbar, cervical and thoracic.

·Increases overall energy.

·Increase organizational capacity.

Yoga in organizations. Retrieved April 18, 2011, from: http://www.elestudio.mx/blog/?p=4

Benefits of Yoga in organizations. Retrieved April 18, 2011, from: http://www.bellezayalma.com/beneficios-del-yoga-2/

References:

- Yoga para Empresas”. (2008). Beneficios del yoga para las empresas. Retrieved: April 18, 2011, from: http://www.yogaparaempresas.com.ar/beneficios.html  

- Sadhaka. (2009, September 16). “el yoga cada vez más triunfa en las empresas”. Retrieved: April 18, 2011, from: http://cuadernodeyoga.com/2009/09/16/el-yoga-cada-vez-mas-triunfa-en-las-empresas/

LEADERSHIP

According to the business dictionary leadership in an organizational role involves 1) establishing a clear vision, 2) sharing that vision with others so that they will follow willingly, 3) providing the information, knowledge, and methods to realize that vision, and 4) coordinating and balancing the conflicting interests of all members or stakeholders. A leader comes to the forefront in case of crisis, and is able to think and act in creative ways in difficult situations.

Leadership flows from the core of a personality and cannot be taught, although it may be learnt and may be enhanced through coaching or mentoring. There are different types of leadership styles:

-Charismatic leader: leads by infusing energy and eagerness into their team members.

- Bureaucratic leader: is very structured and follows the procedures as they have been established.

- Autocratic leader: (Lewin, Lippitt, & White, 1939) is given the power to make decisions alone, having total authority.

- Democratic leader: (Lewin, Lippitt, & White, 1939) listens to the team's ideas and studies them, but will make the final decision. Etc.

The following video shows Colin Powell explaining what leadership is:

Source: Colgate University, (April, 2009). Retrieved March 3, 2011, From: http://www.youtube.com/watch?v=T21HBWxBd-U&feature=relmfu

 Discussion: Do you think the power of vision have been overestimated or underestimated in giving direction to business?

I think that the power of vision has been underestimated in giving direction to business.  Many years ago the vision wasn’t very important; companies just satisfied there needs by selling in their local markets, it was just one requisite to open the company. But from few years now people saw the importance of applying those visions with the help of leaderships or persons that have that visionary characteristic that may lead to a growth on profits. (People with the ability or willingness to influence others so that they respond to it)

ETHICAL BEHAVIOUR AND INTERNATIONAL BUSINESS

What does the statement “all capitalism is crony capitalism” is referring to? Do you agree with this statement or not? Give an example.

According to the business dictionary Crony Capitalism is when an economy that is nominally free-market, allows preferential regulation and other favorable government intervention based on personal relationships. In such a system, the false appearance of "pure" capitalism is publicly maintained to preserve the exclusive influence of well-connected individuals. I totally agree with the statement “all capitalism is crony capitalism”, since almost all the things that are done are based of some kind of influence of people that have more power than others or just people than know other people and both benefits if they establish a relationship, this happen more frequently between the corporations or multinational organizations and the countries government (president, vice president, among others) give a special tax credit since that MNC help with the campaign of the new president. The following video gives an example of crony capitalism in the United States:

Source: Stossel, crony capitalism. (January,2010). Retrieved March 3, 2010, From: http://www.youtube.com/watch?v=2sSg0xjzIec

What is a banana republic? Why the author is comparing India with a banana republic?

Bananas Republic are run on cronyism, describes a country whose government is primarily concerned with economics benefiting a colonial or corporate power, rather than values of democracy and social welfare. The author is comparing India with a Banana Republic because this country it is actually managed by corporations, since the last 20 years they have been consolidating in the country. The country is very rich in natural resources, so the government and new corporations are taking advantage of this, by reducing taxes and giving 

a part of their profit to the people involved.

Why is it problematic that in the business world “The Media” becomes a corporation?

The media is a really big business it influences in different ways the corporation, it brings out the good or bad things of the company creating a good or bad image of it. The main problem with media becoming a corporation is that it can damage its vital characteristic, which is credibility since is managed or handle by influences “under the table”. 

In this situation, what behaviors are considered unethical for corporations, journalist and the state?

There are some behaviors that come from corporations, journalist or states that are consider unethical, in this case we could see the union or relationship between corporations and the government, how members of the government as individuals gain some benefits if they applied flexible rules to this company’s, how in some way the media acts as influencers in markets and how they said things based on a corporations opinion to damage the image of its competitors. 

Source: Carly Fiorina, personal ethics. (October,2006). Retrieved March 3, 2010, From: http://www.youtube.com/watch?v=WIH8uMu1_ng

What can The Media, Corporations and the States do in order to behave ethically and in the benefit of the people and not their own interest. Give at least 5 good ideas

- A non-governmental institution can control media, corporations and states acts by punish them if they do something unethical.
-The media should act independent from corporations and governments, to conserve their credibility.
-Governments members should first give the example by letting behind unethical acts and based on these create a group inside the government that follows each movement of each company in the country. (very 

difficult)

- Create laws with stronger sanctions.

- Media can promote values and ethical behavior, to people, entities and government.

MOTIVATION

Motivation is one of the main factors that determine the work performance of employees. A person is motivated when he or she wants to do something but notice that the reason to do something does not represent the same thing as the stimulus.

The most influent theory is the one of Maslow´s hierarchy of needs, which classifies people’s needs in 5 levels:

Source:Maslow´s hierarchy of needs. Retrieved February 28,2011, From:http://www.selfmademiracle.com/prosperity/maslow

Frederick Herzberg´s two factor theory: He found out that satisfaction factors were related to elements of professional activity (achievements, promotions, responsibility). Dissatisfaction factors involved the context of their work: company policy, management, salary, work conditions. (This theory was criticized because it does not make any evaluation of the relationship between satisfaction and performance)

Theory X and Theory Y (Douglas McGregor): Separates employees in two categories. The following chart shows the difference of x and y theory:

Source: Theory X & Theory Y. Retrieved February 28, 2011, From: http://www.ccel.us/hans.ch5.html

The 2 theories above are content theories; they actually focus on specific factors that motivate the employees regarding certain necessities and aspiration.

The following theories are focus theories this means that are concentrated on the process, on the psychological forces that have an effect on motivation. These theories are more useful to managers because they offer more realistic principles regarding motivation techniques.

The expectancy theory (initially elaborated by Vroom, and then developed by Porter and Lawler): The motivation is only possible when there is a clear relation btw the work performance and its results, and the results are means to satisfy a certain need.

The goal setting theory (Lotham and Locke):  motivation and performance is higher when there are specific objectives that even if difficult are accepted and receive performance feedback.

The fifty-fifty rule (new theory of motivation): The theory says that a substantial part of motivation lies within a person while a substantial part lies outside and beyond its control. The 50-50 rule covers both the 1) Internal perspective of an individual and its inner motivational factors and also the 2) External perspective, when the employee motivation is influenced by others and the instant.

DISCUSSION: is economic retribution enough to motivate employees?

I believe that economic retribution is a huge step to motivate employees but is not enough, since from one side is very difficult to keep that kind of arrangements with all the employees plus not everyone has the same interests, maybe some of them want to ensure self-actualization or physiological needs, it all depends of the person its personality, behavior and needs.

Reference:

Viorel, Lefter, Manolescu Aurel, Marinas Cristian Virgil and Puia Ramona Stefania. 2009. "Employees Motivation Theories Developed At An International Level". Annal of the university of Oradea, Economic Science Series 18. 

Personality, Perception and Attribution/Attitudes and Values

A brief definition for personality is that it is made up of the characteristic patterns of thoughts, feelings and behaviors that make a person unique. Personality arises from within the individual and remains fairly consistent throughout life. Some of the fundamental characteristics of personality are: self-concept (self-efficacy, self-esteem, self-monitoring), positive or negative affect, locus of control (internal: person controls its own destiny and external: belief that things happen because of other people, luck). Perception is the process of attaining awareness or understanding of sensory information. It´s important to have cleared that people’s perception is affected by internal factors such as: stimuli from environment and context in which they operate.  Attribution is a concept that people make sense of their surroundings on the basis of what they consider is the cause and what is the effect of a phenomenon. It suggests that individuals observe their own behavior or experience, try to figure out what caused it, and then shape their future behavior accordingly. Explanations of behavior fall into two categories.  One is internal attribution, which is associated with personal factors such as personality, ability and motivation. And the other is external attribution, which is related to environment factors such as organizational rules, luck and natural environment.

The attitudes are the feelings about certain situations or people and it’s highly related to one’s behavior. The ABC model explains three main components of attitudes, such as the affect (the feelings and verbal statements), the behavioral intentions (how the person behaves and the verbal statements about the intentions) and the cognition (attitudes and beliefs). The attitudes are created mainly by two reasons: direct experience and social learning.

Values are those beliefs about some conducts that are accepted and are divided in two main categories: instrumental (how to achieve goals) and terminal (the goals to be achieved). In the organization there are some values generally accepted, such as concern for others, honesty and fairness.

Source: Bryan Eisenberg.2008.Retrieved February 28, 2011, From: http://www.semvironment.com

They Pygmalion effect is how a perception about the performance of a person affects its behavior and performance.  

Retrieved February 28, 2011, From: http://www.accel-team.com/pygmalion/index.html

DISCUSSION: Why is important for managers and employees to be able to understand different types of personalities?

Understanding the different types of personality is helpful for appreciating that while people are different, everyone has a value, and special strengths and qualities, and that everyone should be treated with care and respect. Both employees and managers can become tolerant by recognizing the different types of personalities. Also are useful for management, recruitment, selection, training and teaching. 

References:

- Takao Inamori, Farhad Analoui, "Beyond Pygmation effect: the role of managerial perception", Journal of Management Development, Vol.29 Iss:4.

- Martin de Castro G., Navas Lopez J., Lopez Saez P., Alama Salazar, E.(2006) "Organizational capital as competitive advantage of the firm" Journal of Intellectual Capital, Vol 7 Iss:3.

NATIONAL AND ORGANIZATIONAL CULTURE

Culture is one of the factors that influence on how the organization makes decisions, communicates and structures its roles and relationships. The national culture is a culture that characterizes a national group and influences the behavior of individual members, it distinguished members from one human group from others and it includes a system of values. While the organizational culture are all the whole collection of attitudes, experiences, beliefs and values of an organization. (Aspects of corporate culture: symbols, norms, ceremonies). There are six factors that determined it: dominant characteristics (first thing you see), organizational leadership, the management of employees, the organization glue (what joins together employees in an organization “loyalty, friendship”), strategic emphases (what do really aim for) and criteria of success. It’s important for me to mention some characteristics of corporate culture: first it provides compromise about organizations values, second it gives a sense of identity, guides behavior and provides controls for desirable behavior and finally it is very common to found that the values were established a few years ago, when it was founded the company. 

The following picture shows the relationship between culture, identity and image:  

Source: Hatch & Schultz, 2002. Retrieved February 27, 2011, From: Your Building, Prospering From Sustainability: http://www.yourbuilding.org/Article/  

culture: "the way we do things around here"

Identity: "how we see ourselves"

Image: "how we want others to see us"

This video will helps us understand a little bit more the definition of organizational culture:

DISCUSSION: Do you think that is possible to change corporate culture? How would you do it?

I believe that is possible to change organizational culture, but there are certain challenges that managers have to affront to be able to create this kind of change in their organizations. First they have to take in mind that culture change is neither easy nor quick, since creating and implanting significant change may well be a five year exercise. Second, managers have to understand that some people are more receptive to change than others, it is important to always keep in mind that different people, and different parts of the organization, are likely to be more receptive to cultural change than others. Because of this, change will not occur in a uniform way across the organization.  A way to do it is by implementing powerful leadership managers, which can lead people to commitment to the organization, also the leadership have to take in mind that depending of the job that the person is doing the risk that they see in change is different from one to another.  

Reference:

- Mead, Richard,2004. International Management: Cross-Cultural Dimensions London: Blackwell Publishing.Chapter 1. 

                                             THE CORPORATION

1. How can we ensure corporations are held accountable for their actions “ethically” and “legally”?

R// According to the documentary a corporation is a group of individuals working together to serve a variety of objectives the principle one is to earn large,growing, legal returns for the people who own the business, sometimes is quite difficult to ensure that they will act ethically and legally, since their main motivation is to generate profit even though there are several politics involve like national and international regulations and also the civil society (consumers) are an interest instrument that can establish limits, for example: by stop the purchase of goods or services that the company provide, forcing them to stop doing inappropriate things.

2. Should individuals (directors, employees, shareholders) bear any responsibility for the actions of a corporation? If so, to what degree?

R// I think that directors, employees and shareholders are in some way responsible of the actions of a corporation, because as I mentioned before, a corporation is a group of individuals that work together to obtain a goal. Also is important to clarify that all the decisions are not only taken by the CEO; their partners are also involved. Besides, an individual can be good person outside the institution he/she is just themselves but at entering at the institution the role changes in some cases since they have to act very aggressively (role of a monster CEO) if they don’t do so the competition will bring them down.

Milton Friedman (novel prize winning economist)said that corporates are an artificial legal structure, that actually a building can’t have moral opinions or social responsibilities but people that are involve with the corporation (employees, stockholders) should have those moral responsibilities.

3. What are the benefits of the corporate form? Could an alternative model offer these as well?

R// some benefits of a corporate are:

·         Owners' personal assets are protected from business debt and liability

·         Corporations have unlimited life extending beyond the illness or death of the owners

·         Tax free benefits such as insurance, travel, and retirement plan deductions

·         Transfer of ownership facilitated by sale of stock

·         Change of ownership need not affect management

·         Easier to raise capital through sale of stocks and bonds

They offer a way to increase standards of living of people that are from underdeveloped countries, gaining a lower cost in production (China & Bangladesh).  For citizens there is another way to obtain a better life quality “the government” if they provide opportunities people might have a better way of life without giving almost for free their work.

4. Search for a foreign multinational corporation that has operations in Colombia. Research if they are run under Colombian rules or regulations or if they have special regulations?

R// an example of a foreign multinational is BBVA from Spain, the regulation of FDI, one can say that Colombia has a very favorable legislation for foreign investment, which for all purposes is treated as national investment. In addition, to facilitate exports were placed ten zones, which offer tax benefits and in which there are no taxes on imports and exports, five special economic zones that provide incentives export-exchange, prosecutors, customs and labor-and Vallejo Plan, offering tax breaks to multinationals and guarantees for the commercialization of products and raw materials.

5. Should economic efficiency (Main argument for privatization) be the primary concern for commons and public services? Are there other criteria to determine who should own or operate them?

R// I believe that corporation (private institutions) brings efficiency to the economy; also it helps to make a good image of the country in terms of competitiveness. Somehow private institutions created a wealth and when they open a branch in another country this brings opportunities of work for the people but also are the public institutions the ones that creates very good benefits for people for example in periods of recession most of this institutions tried to keep their employees in good conditions but as corporations are mainly concerned of profits most of them make quick decision like firing people.    

References:

-Mark Achbar, Joel Bakan, y Jennifer Abbott (producers). (2003). The Corporation [DVD].

Available from http://www.youtube.com/watch?v=Pin8fbdGV9Y&feature=BF&list=PLFA50FBC214A6CE87&index=1

- Kine, John M. 2006. "MNCs and Surrogate Sovereignity" Brown Journal of World Affairs. 

- [authors of the film]. retrieved 2003 from: http://www.nodo50.org/tortuga/Documental-The-Corporation