Yoon Final

You were asked to read Robert McGee & Yeomin Yoon's article, "China reluctant to join "the 'anyone but China' club" (China Daily, October 30, 2015)

(a) Summary the article in two full sentences. China would benefit from joining another regional trade agreement as this country was left out of the TPP. China's best option is the FTAAP or RCEP rather than the TPP. (b) If you were China's policymaker, how would you cope with America's international trade policy? a. If I was China's policymaker, I would believe that is an easy and clear decision to join the FTAAP since China was not invited into the TPP, created by the US. The "economic NATO" is the reason that the US did not invite China because it is seeking to contain China's influence in Asia (c) If you were US's policymaker, how would you cope with China's international trade policy? a. If I was the United States' policymaker, I would find to prevent the Regional Comprehensive Economic Partnership (RCEP), as it excludes the US, Canada, Mexico, Peru and Chile, from becoming too large because the expected income for the RCEP would be 8 times greater than the income of the TPP by 2025.

Globalization facilitates free international movement of capital which in turn stimulates off-shoring domestic jobs. Is such globalization that stimulates off-shoring jobs "good" for humanity? State your views. You must provide your analysis and/or argument that supports your statement. Otherwise no credit will be given.

- Good off-shoring jobs helps to raise the living standards in other countries better for the whole - Bad decreases moral in the home country and takes jobs away from working class people

David Ricardo's Comparative Advantage Theory - Problems in the context of a globalized world where money moves freely across national boundaries

An agent has comparative advantage over another agent if they are able to produce goods at a lower relative opportunity cost. Under free trade, a nation will produce more of a good and consume less of that same good if it holds a comparative advantage. If two countries were to link up, each country in a comparative advantage would increase overall consumption and productivity as well as efficiency. Potential advantages that come from changing in either investment or economic development, as well as no guidance in long-term economic development, are not taken into account with the theory of static. Trade policies currently around the world mostly focus on competitive advantage as countries are encourage to strengthen industries within their own country rather look to sell products outside the country. Money moves freely throughout the world making the comparative theory not necessary today because countries do not have to look to having one specific trade partner.

Virtue ethics has its origin in Aristotle's Nichomachean Ethics. The basis of this approach is that something is considered ethical if the result is human flourishing. Plato and Aristotle consider well being (or virtue) the moral end of humans and they will assess contemplated actions by the degree of their conduciveness thereto, Confucius is also a virtue ethicist. His Ren (or jen), translated as humaneness is a mode of existence with moral dispositions to behave correctly in social relations and situations.

Aristotles, human flourishing, aristotle, confucius, humaneness

Business Ethics are the accepted principles of right or wrong governing the conduct of businesspeople, and a(n) ethical strategy is a course of action that does not violate these accepted principles... The concept of social responsibility refers to the idea that businesspeople should consider particularly large successful businesses, need to recognize their noblesse oblige and give something back to the societies that have made their success possible ... The term organizational culture refers to the values and norms that are shared among employees of an organization. Values are the abstract ideas about what a group believes to be good, right, and desirable, while norms are the social rules and guidelines that prescribe appropriate behavior in particular situations. Taken together, values and norms shape the culture of a business organization, and that the latter has an important influence on the ethics of business decision making.

Business Ethics, ethical strategy, social responsibility, noblesse oblige, organizational cutlure, culture, ethics

During the recent financial crisis, the US government bailed out Wall Street banks with tax payers' money. Based on these major ethical approaches, is such bailing out ethical or unethical? You must explain why you think so.

Ethical keeps so many people working Virtue theory states that human flourishing above all else Utilitarian theory is to promote the greatest happiness for the greatest amount, this was best for the majority

One of the most popular arguments in favor of trade protectionism is that international trade should be "fair" rather than free. How you define "fairness" in international trade? Is fairness a process or an outcome? What kind of international transaction can be called "fair" (or "unfair")? Explain.

Fairness means that there are equal opportunities for industries, companies and nation to be successful and that all laws and standards are being followed by all members. The Infant Industry Agreement helps ensure that new members that enter the market are able to progress at an equal level so other major corporations do not destroy them before they are able to build their brand up.

1. Do you agree with the quote? "Your interest and interests of others are on par, so that you have no justifiable claim to have your satisfied first or foremost."

I agree with this quote because I have always been taught that you should treat everyone equally and as you would like to be treated. Therefore, everyone should be treated fairly and equally. In addition, all should have a fair chance at achieving their goals and satisfaction.

Infant Industry Agreement - is this trade protectionism ethical based on the ethical theories covered this semester?

Infant Industry Agreement is an economic rationale for trade protectionism. The core of the argument is that new, blooming, bright-futured industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale. The infant industry argument states that developing countries are justified to put tariffs on imports if they are seeking to develop new industries. Many developing economies have a comparative advantage in producing primary products (minerals, agriculture). However, in the long term producing these goods have certain disadvantages 1. Low income elasticity of demand. As incomes rise, demand for primary products increases only slowly. Therefore relying on primary products limits economic development. 2. Price volatility. Many primary products have a volatile price because supply and demand are inelastic. In this case, it is good to diversify the economy. To diversify the economy, they could try to develop new, manufacturing industries. However, in the beginning, they may struggle to compete against foreign rivals. Therefore, tariffs help provide a domestic market for the new firms. This gives new industries a chance to get established. Over time, the new industries will become more efficient and benefit from economies of scale. At this time the tariffs can then be reduced.

The business ethics literature is not in agreement as to which ethical system should be used to evaluate ethical issues. It is probably accurate to say that the dominant ethical system is utilitarianism - the system used by typical economics textbooks in the U.S. Classical utilitarianism of Jeremy Bentham, James Mill, and John Stuart Mill would simply weigh the overall loss of any action ( e.g, trade policy) against the overall gain. Utilitarianism suffers from some serious flaws. The most serious flaw of utilitarianism is the total disregard of individual rights and the impossibility of making interpersonal comparisons i.e., the inability to measure gains and losses with any degree of accuracy, which makes it improbable for reasonable people to disagree as to whether a particular act is ethical or unethical.

Jeremy Bentham, John Stuart Mill, overall loss, overall gain, individual rights, interpersonal comparisonsw

1. What does Mercosur stand for? What is it? Explain.

Mercosur is a sub-regional bloc comprising Argentina, Brazil, Paraguay, Uruguay and Venezuela. Its associate countries are Chile, Bolivia, Colombia, Ecuador and Peru. Its purpose is to promote free trade and the fluid movement of goods, people, and currency.

The three pillars of a liberal society are Adam Smith's. What were they? Cite and Explain.

Prudence - looking after one's self as best as one is able Justice - keeping the law of the land Beneficence - caring for others and society where there is need as well as maintain the common good

Paul Samuelson, one of the leading economic theorists of the 20th century, free trade can lead to an outcome that is not beneficial. Summarize "The Samuelson Critique" (textbook, pp. 171-173) in four full sentences. Do you agree or disagree with Prof. Samuelson? Why do you do so? You must explain.

The Samuelson Critique is a result of a rich country, like the US, entering into a free trade agreement with a poor country, such as China, because it improves productivity after a free trade regime is introduced. As the US pays lower prices for imported goods from China, the introduction of a free trade regime may not result in a net gain for the US economy if the dynamic effect of free trade is to lower real wage rates in the US. This critique also makes mention that jobs which are not traditionally outsourced is a result of communication advancements. In a free trade agreement, rich countries usually get the better end of the deal and the procedures that are created in order to protect the weaker country, in this case China, could end up being even more harmful to them. Much of the good that has come from the free trade includes lower good cost and has wiped out by the loss of labor and ensuing unemployment as well as social welfare. However, free trade is good because the short term losses the countries experience, will become long-term gains.

1. Recently the US Congress accused China of practicing "mercantilism" (a) If your Job interviewer asked you "What is Mercantilism?", how would you explain?

This is a national economic policy that says a nation benefits by accumulating military reserves through a positive balance of trade, especially of finished goods First theory of international trade; an economic philosophy advocating that countries should simultaneously encourage exports and discourage imports; imports limited by tariffs and quotas emerged in England in the mid-sixteenth century (b) In your view, is China practicing mercantilism? If yes, briefly explain why you think so. If no, briefly explain why you think so. Yes because it stockpiles US currency by keeping their currency artificially deflated and by producing a cost to the USA in trade, making it not fair. Increased military and have a positive balance of trade.

1. Explain Infant Industry Argument for trade protectionism. Do agree or disagree with trade protectionism for infant industries of your country? If you agree, you must explain why you agree. If you disagree, you must explain why you disagree. Otherwise, no credit will be given. **See additional notes included below**

Yes, because infant industries usually do not have economies of scale that their older competitors have & thus have to be protected until they are on a level playing field. Had these industries not had the protection they have they would have no way to compete on global markets

You were asked to read Yeomin Yoon's article on "Way forward is for US to cooperate with China" (Financial Times, November 11, 2015)).

You were asked to read Yeomin Yoon's article on "Way forward is for US to cooperate with China" (Financial Times, November 11, 2015)). (a) Summary the article in two full sentences. a. The United States needs to reconsider its stance on the Asian Infrastructure Investment Bank and Trans-pacific Partnership. Furthermore, the US should join the bank to make sure standard are met and create a new regional trade agreement, the 21 member Free Trade Area of Asia Pacific. (b) Do you agree or disagree with the writer's view? Why do you agree or disagree? You must explain. a. I agree with the writer's view because due to the fact that China was left out of the TPP, it is necessary for a new trade agreement to be created that includes China. They should not be left because China is the largest trading nation and is likely to account for "between a third and half growth in global incomes, trade and commodity demand" in the future.

The contractualism of John Rawls is not, in the usual sense of the term, an ethical theory. It is far narrower than the comprehensive ethical doctrines that deal with moral values. It is instead, "a political conception of justice for the special case of the basic structure of a modern democratic society.." Rawls creative addition to social contract theory is the "original position with its accompanying veil of ignorance. Which he describes as a procedural interpretation of Kant's categorical imperative. In the original position people or their representatives determine the principles under which they will be governed.

contractualism, political conception of justice, viel of ignorange

It is a position of equality among free + rational persons in establishing the fundamental terms of their association. Under the veil of ignorance, people would unanimously agree on two fundamental principles of justice. His "First Principle" stipulates that each person be permitted the maximum amount of basic liberty compatible with a similar liberty for others. Rawls take this to be political liberty e.g., freedom of speech and assembly, liberty of conscience and freedom of thought, the freedom and right to hold personal property, and freedom from arbitrary arrest and seizure. His "Second Principle" stipulates that once equal basic liberty is assured, inequality in basic social goods (such as income and wealth distribution, and opportunities) is to be allowed only if such inequalities benefit everyone, Rawls formulates what he calls the difference principle, which is that inequalities are justified if they benefit their position of the least-advantaged person or group. For example, wide variation in income and wealth can be considered just if the market-based system that produces this unequal distribution also benefits the least advantaged members of society. Foreign Direct Investment (FDI) occurs when a firm invests directly in facilities to produce or market a product in a foreign country. Once a firm undertakes FDI, it becomes a multinational enterprise. FDI takes on two main forms. The first is a greenfield investment which involves the establishment of a new operation in a foreign country. The second involves acquiring or merging with an existing firm in the foreign country.

equality among free rational people, political liberty, benefit everyone, differnce principle, least-advantaged, just

The advantages frequently associated with entering a market early are commonly known as first mover advantages. There can also be disadvantages associated with entering a foreign market before other international businesses. These are often referred to as first mover disadvantages. These disadvantages may give rise to pioneering costs, costs that an early entrant has to bear that a later entrant can avoid.

first mover advantages, first mover disadvantages, pioneering costs

Firms for which licensing in not a good option tend to be clustered in three types of industries: (1) high tech industries in which licensing in hazardous; (2) global oligopolies in which competitive interdependence requires that multinational firms take tight control over foreign operations so that they have the ability to launch coordinated attacks against their global competitors; and (3) industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations.

high tech industries, global oligopolies, maintain tight control,

eight key social principles

i. The life and dignity of the human person ii. Call to family, community, participation iii. Rights and responsibilities iv. Preferential option for the poor v. The dignity of work and worker's rights vi. Solidarity vii. Care for god's creation viii. Subsidiarity.

For Immanuel Kant (1724-1804), a moral act can only be carried out unselfishly, or therefor out of pure responsibility toward moral imperative. According to this allegedly "the greatest western philosopher of the modern era," a moral person pays no heed to increases or decreases in utility; if one wants to carry out a moral act, it must "overcome ones self" and go against the dictates of the pursuit of maximization of one's own utility. He formulated the categorical imperative several different ways, one of which is " Act only in accordance with that maxim through which you can at the same time will it become a universal law " [Groundwork of the metaphysics of Morale (1785)]. He stated that " so act that you use humanity, whether in your person or in the person of any other, always at the time as an end, never merely as a means." To him, a moral act can only be carried out unselfishly, out of pure responsibility toward moral imperative. So his ethics is completely anti-utilitarian. According to his ethical philosophy, an action is naturally moral if and only if the agent performs it because he/she thinks he/she ought to perform it, because it is his/her duty as a human person. In other words an action that objectively is right but motivated by expectation of a reward lacks moral worth. He also made a strong argument for the autonomy of ethics. He argued that ethics needed no theological foundation and faith needed an ethical foundation. Rational beings can share a moral law on gratitude that their common reason finds.

immanuel kaant, pure responsibility, pursuit of maximization, categorical imperative, universal law, end, anti utilitarian, duty, moral worth, autonomy, ethical foundation

The rights-based theory of ethics is both theoretically and practically superior to utilitarianism because it avoids the structural flaws of utilitarianism. When applying rights theory, all that is needed is to determine whether anyone's rights have been violated. If so, then the act is automatically unethical regardless of whether the outcome is a positive or a negative sum game. According to the rights based philosophy, "Individuals are inviolable" [ Robert...something something ] . Individuals are ends, not means, and neither they, nor their work nor their resources may be taken without their consent, for the use of others. Rights based ethics recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures. Rights establish a minimum level of morally acceptable behavior. The notion that there are fundamental rights that transcend national borders and cultures was the underlying motivation for the UN declaration of human rights. Virtue ethics has its origin in Aristotle's Nichomachean Ethics. The basis of this approach is that something is considered ethical if the result is human flourishing. Plato and Aristotle consider well being (or virtue) the moral end of humans and they will assess contemplated actions by the degree of their conduciveness thereto, Confucius is also a virtue ethicist. His Ren (or jen), translated as humaneness is a mode of existence with moral dispositions to behave correctly in social relations and situations.

superior to, anyones rights, unethical, inviolable, means, consent, transcend, UNdeclartion of Human rights

The Trans Pacific Partnership is a proposed free trade agreement under negotiation by Australia, Brunel, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. Taiwan announced interest in 2013. The Transatlantic trade and investment partnership is a trade agreement that is presently being negotiated between the EU and the US. It aims at removing trade barriers in a wide range of economic sectors to make it easier to buy and sell goods and services between the EU and US.

trans pacific partnership, transatlantic trade and investment partnership

Contemporary utilitarianism is far more highly developed than the classical version. According to Kaldo-Hicks economic efficiency, a policy action is good if a change maximizes the overall value of social resources even if, as a consequence, some are worse off, if the winners could compensate the losers and still be better off. The doctrine of double effect has its roots in Catholic Moral Theory. It holds that, in certain circumstances, it is permissible to take an action intended to bring about good consequences even if it is foreseen that the action will also bring about other consequences that are bad. For a strict utilitarian, consequences are crucial and intent is irrelevant. Strict utilitarians reject the notion that there can be a moral difference between two people who perform the same act with identical consequences. For those who look to the doctrine of double effect for guidance, the utilitarian calculus that is part of the exercise is just one part. The other part - intent - is crucial as well.

worse off, compensate, catholic moral theory, consequences, bad, intent, moral difference, utilitarian calculus,

Virtue ethics

¥ The basis of this approach is that something is considered ethical if the result is human flourishing.

Utilitarianism

• A system of ethics according to which the rightness or wrongness of an action should be judged by its consequences. The goal of utilitarian ethics is to promote the greatest happiness for the greatest number.

Evaluate the comparative advantage theory of international trade in the context of foreign direct investment

• Immobile factors of production (capital and labor) across national boundaries • Mobile factors of production (e.g., capital) • FDI can lead to job losses for the country whose firms invest abroad rather than in their home country