18Oct 2018 by Reese Bannister

What are the main differences between International and Domestic Businesses?

Accounting
International business is the outgrowth of domestic business. Most of the multinational enterprises (MNEs) started their operations in the domestic market. Yet, it is a fact that international business differs from domestic business in many ways (see Table 1.1). Domestic business occurs within the boundaries of a single nation, whereas international business transactions cross national borders. Image Source: blogs-images.forbes.comDue to the cross over, the firm has to deal with the forces of three types of environments, viz., domestic, foreign, and international. Cultural, political, legal, trade and technological environments overseas are likely to be different. Not only different! But also varying from country to country and region to region within one country. ADVERTISEMENTS: Renault’s “people’s car the Logan, was a hit in Eastern Europe and other parts of the world, but…
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18Oct 2018 by Reese Bannister

Which Advantage is called as the Economics of Scope in a Firm?

Management
Beside scale effect, a firm can also reduce average cost of production by increasing the number of related products in its portfolio. That is, a multiproduct firm may produce and market its products at a lower cost than manufacturing each of the products separately by different single- product firms. This advantage is called economies of scope. Image Source: globalhealthhub.orgLet x and y represent output of two different but related products. C (Q, 0) denotes total cost associated with production of QX quantity of x alone and C (0, QY) stands for total cost of producing QY quantity of y alone. C (QX, QY) represents total cost of producing QX quantity of x and QY quantity of y by one firm. Mathematically, an economy of scope exists in a two-product firm…
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18Oct 2018 by Reese Bannister

9 Main Disadvantages of Multinational Organizations

Investment
The disadvantages are described as follows: 1. Uncertainty: MNCs often scale down their production facilities and close the operations in situation of economic uncertainty. They practise hire and fire; hence, people employed in MNCs often lose their jobs.Such uncertainty may lead to internal problems in the country. Image Source: cdn.shareyouressays.com 2. Control: ADVERTISEMENTS: MNCs often exert control over the local government, both economically and politically. Such control may even go against the interest of the nation as a whole. 3. Transfer Pricing: This is done by lowering the internal price structure. Through this, MNCs can reduce their profits in the countries, where they operate and thus deprive their host countries from the legitimate tax payouts. 4. Environmental Imbalance: MNCs can create environmental imbalances extracting natural resources and polluting the environment…
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18Oct 2018 by Reese Bannister

Short Summary of “Financial Expert” by R. K. Narayan

Currency
Narayan’s The Financial Expert (1952), is his masterpiece. William Walsh hails Margayya, the hero of the novel as “probably Narayan’s greatest single comic creation.” It is an extremely well constructed novel, in five parts corresponding to the five Acts of an Elizabethan drama. The Financial Expert tells the story of the rise and fall of Margayya, the financial expert.The protagonist of the novel, Margayya begins his career as petty money-lender doing his business under the Bunyan tree, in front of the Central Co-operative Land Mortgage Bank in Malgudi. He helps the shareholders of the bank to borrow money at a small interest and lends it to the needy at a higher interest. In the process, he makes money for himself.The Secretary of the Bank and Arul Doss, the peon, seize…
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18Oct 2018 by Reese Bannister

What are the 4 Types of Coordination in Organizations? – Explained!

Management
4 Types of Coordination in Organizations are as follows:i. Vertical Coordinationii. Horizontal Coordination ADVERTISEMENTS: iii. Internal Coordinationiv. External Coordination Image Source: wexlerlawgroup.com i. Vertical Coordination: Vertical coordination is the coordination between different levels of the organization to ensure that all levels of organization are in harmony with the organizational policies and programmes. This is achieved through delegation of authority by directing and by controlling. ii. Horizontal Coordination: ADVERTISEMENTS: Horizontal coordination is the coordination between departments on the same level of managerial hierarchy. Coordination between production and marketing departments at the same level or organizational hierarchy is an example of horizontal coordination. This is achieved by forming cross-functional teams and self-managed teams. iii. Internal Coordination: Vertical and horizontal types of coordination, if carried out within an organization, are called internal coordination.…
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18Oct 2018 by Reese Bannister

What is the Importance of Coordination in an Organisation? – Explained!

Strategy
Coordination is a primary method of synchronization to avoid interruptions of operations and to ensure unity of action among individuals and groups, which together help to accomplish organizational goals. Needs, significance and importance of coordination are many. Basically, we can cluster such needs in three categories as under: Image Source: cdn.yourarticlelibrary.comi. Division of labour ADVERTISEMENTS: ii. Interdependence of unitsiii. Integration of individual with organizationIn another way, such needs can be understood in the following ways:i. Coordination is important because of growth in size of organization ADVERTISEMENTS: ii. Coordination is important because of growing specializationiii. Finally, it is important due to diversity of human natureHere, however, we have discussed needs, importance and significance of coordination point wise as under:1. Specialization: ADVERTISEMENTS: Principles of division of labour and specialization require segregation of…
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18Oct 2018 by Reese Bannister

Essay on Hegel's Theory of State

Art
The most seminal contribution of Hegel to Political Philosophy is his theory of state. Like Plato, Hagel is a great system builder. His theory of state is rooted in the axiom: “What is rational is real and what is real is rational”. It means that whatever exists in the world is according to Reason and whatever is according to reason exists.Hegel’s theory of state is based on the basic premise about the gradual unfolding of Reason or Spirit or Absolute Idea through a dialectical process, Reason gets its perfect realisation in the state. Thus, the state is Reason personified. State is rational, state is real; therefore what is rational is real.Here, real does not only mean that which is empirical but that which is fundamental. In fact, Hegel distinguishes between…
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18Oct 2018 by Reese Bannister

Essay on Hegel's Dialectical Method

Philosophy
Hegel’s political philosophies rest mainly on his dialectical method. Hegel borrowed his method from Socrates who is the first exponent of this method. Hegel has himself expressed his debt to Socrates for this method. The dialectic means to discuss. Socrates believed that one can arrive at the truth only by constant questioning.It was the process of exposing contradictions through the method of discussion. Having taken a clue from Socrates Hegel argued that absolute Idea or the Spirit, in search of self-realisation moves from being to non-being to becoming.To put it in simple words, an idea moves from a thesis to antithesis until a synthesis of the two is found. Synthesis has in it elements of thesis as well as antithesis. In due course, the synthesis itself acquires the status of…
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18Oct 2018 by Reese Bannister

Views of John Stuart Mill on Representative Government–Essay

Artists
Mill began his Representative Government by stating that we can only decide which is the best form of government, by examining which form of government fulfils most adequately the purposes of government.For Mill, the point of having a government was that it performed two main functions: it must use the existing qualities and skills of the citizens to best serve their interests, and it must improve the moral, intellectual and active qualities of these citizens.A despotic government may be able to fulfil the first purpose, but will fail in the second. Only a representative government is able to fulfil these two functions. It is a representative government that combines judiciously the two principles of participation and competence which is able to fulfil the two functions of protecting and educating the…
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18Oct 2018 by Reese Bannister

Essay on Bentham's Utilitarian Theory

Government
For Bentham, utilitarianism was both a descriptive and normative theory it not only described how human beings act so as to maximise pleasure and minimise pain, but it also prescribed or advocated such action.According to the principle of utility, the cause of all human action, that which motivates human beings to act, is a desire for pleasure. Utility Or happiness is defined in terms of pleasure: a thing/action is useful if it brings about happiness, that is, pleasure: “By utility is meant that property in any object, whereby it tends to produce benefit, advantage, pleasure, good or happiness.”A person’s interest also has the same content that of pleasure “something is in the interest of a person when it tends to add to the sum total of his pleasures or diminish…
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