Current event Select any current event topic related to the course material (within the last 3 months) from any credible/reliable source. Summarize your findings into a paper that addresses the feasibility of a foreign firm competing in that industry within the country and provide your opinion/analysis of the contents. Be sure to follow the instructions as outlined below. Module/Week 4 Rubric used for evaluation of the current event assignment: Name: Article Title: Comments: 1. The assignment includes a cover page with the title of the article, the author s name, the source, your name, course number and name, the date, and the instructor s name. 10 points 2. Summary of the article: 5 points 3. Reflection: your personal thoughts on the subject matter and how the article relates to the subject matter. 15 points. 4. Comprehension: Paper reflects a thorough understanding of the topic. 15 points. 5. Mechanics: Paper contains very few or no writing and/or spelling errors. Sub-headings or bullets are used for each key area. The cover page is complete. 5 points Total Points: 50 points Comments: Best, Dr. Jim PS Assignment due by Module/Week 4 by Day 5. Reading Chapters 9 and 10 in International Business: The Challenge of Global Competition Lecture for the Week 524 replies Discussion: Leanne- What social, political, and economic conditions might signal the existence of a large underground economy, and why should managers pay heed to such signals? The definition of an underground economy is the selling of a good or service that is regarded illegal, unlawful, or there is a failure to meet the requirements for government reporting of that good or service which could include sales of endangered species, selling of human organs or stolen goods, and human trafficking. This kind of underground economy could also be known as the black market. An estimation of the underground economy in 2020 was approximately 11-12% of the GDP (Kenton, 2020). When having an underground economy, it means that the revenue or wages made are not reported to the government, or taxes are not paid on that income (Johnston, 2020). When looking at what can bring the rise of an underground economy could be a political shift in a government rule or the indications that a country is in or moving towards a recession with possible employment issues that employees may be released from their jobs and look for work elsewhere. When an employee loses their job, they may look for other work that could not be legal, they may share information with others they know about their wages and not being reported to the government or pay taxes. The employer may lose employees to that underground job showing that as an indicator of an underground economy. People may resort to other forms of income that are illegal such as selling/dealing drugs or prostitution. Going through what we have for the last 20 months with the pandemic, I fear that this is becoming something that will become more popular for many to get involved in and it is nothing but trouble in many ways and that is not what anyone needs. Johnston, M. (2020, June 28). How big is America s underground economy. Kenton, W. (2020, April 30). Underground economy. Justin- An underground economy refers to illegal economic activities. However, it is not easy to gauge the scale of underground economies because it is not legal, and governments do not have any official data for that. Nevertheless, there are usually few indicators that give signals about the existence of a large underground economy. Social includes the first indicator is the social status and the level of people of that country. Usually, such a black market (another underground economy) happens mostly when society is not developed. A significant portion of the population is socially backward because they do not get the right direction and do wrong activities like participating in an underground economy. Political includes one of the significant indicators is the political scenario of that country, as in whether the political class is weak, firm, or corrupt. In a country with a robust political leader at the helm, there is very little chance of an underground economy on a large scale (Schneider & Dominik, 2002). However, if the political system is either weak or corrupt, the size of the underground economy of that country is bound to grow. The economy is an essential component. Suppose the economy of the country is weak. In that case, people do not have jobs or enough money for their livelihood. They will easily attract a source of income where they can earn quickly, no matter whether it is legal or illegal. Any manager should heed such signals, as a large underground economy always impacts the brands, sales, and value. In such black markets, either duplicate products are being sold, or the products which have been stolen are being sold. Furthermore, in both scenarios, the ultimate loser happens to be the organization that owns that particular brand (Firoozabadi et al., n.d.). Many things can happen with underground economies, and it is hard to keep track of it because there are no documents of it which can hurt the economics of the country in which it is happening. However, every country has a black market or underground economics, so it is hard to keep account of their activities and which products or services they provide. Reference Firoozabadi, Somayeh & Razmi, Seyed Mohammad Javad & Bahmani, Mohsen. (2015). Examining the Effective Social and Economic Factors on Underground Economy. Mediterranean Journal of Social Sciences. 6. 10.5901/mjss.2015.v6n3p525 Schneider, F. & Dominik, E. (2002). Hiding in the shadows: The Growth of the underground economy. Steph- Underground activity occurs for many different reasons and is happening all over the world. When I first think of the black market I think of drugs, illegal firearms, or even sex trafficking. That is not the case, it happens more often than we think in dealings every day. Underground activities are legal or illegal and done off the record. By performing underground activities those involved are evading taxation, rules, and regulations the government has put into place. While evading the taxation they in return are impacting the economy. It is important for any manager should know the signs of underground activities to ensure they are able to identify when it is occurring and what regions they want to pursue for growth or not. It also helps recognize unethical behavior within the company, suppliers, or the area they are operating. Underground activities make it difficult for the region to provide accurate statistics because the undergrown activities are not reported. Some conditions that may indicate an underground economy is a paying for labor under the table , meaning with cash. Any labor that is completed by an employee and paid by cash is an indicator that the employer is trying to avoid labor reporting to avoid the associated taxes and laws involved. It is also indicator when employees are only willing to be paid by cash because that also indicates that they are trying to avoid taxes and therefore may not be authorized to work in that country. Underground activity can be driven by taxes, laws, regulations, or even the economy itself. How many times have we heard someone say they are working side jobs , whether in general or while they are unemployment. They do this to not only earn cash they don t have to report, but also to ensure they do not lose their unemployment. The most recent activity that I can think of regarding underground activity that most don t consider is Venmo. Venmo has been a useful tool for people to be able to transfer money from one person to another, whether for services or just to pay someone back. Venmo has been used as a payment for services and just recently implemented a tax rule. So many users would be utilizing this app to avoid paying taxes on the income they were receiving for goods or services. Now I hear people instruct others on how to send money to avoid the tax fee associated. Reference: Economic issues no. 30 hiding in the Shadows : The growth of the underground economy. International Monetary Fund. (n.d.). Retrieved November 15, 2021, from Fontinelle, A. (2021, November 13). How black markets work. Investopedia. Retrieved November 15, 2021, from There are very few signs that would be visible to the casual observer regarding the existence of a large underground economy, at Ryan- least during the day. At night one can see the existence of gangs, prostitutes, drug dealers, gambling dens, and the like. However, these are usually hidden away from the view of any tourist or casual visitor. Also, legal activities like the production of goods and services which are under-reported, as well as the production of pirated copies of music and videos, illegal manufacture of drugs, etc. contribute to the underground economy. An underground economy flourishes when there are high taxes, as well as prohibition in one form or another. One has always held the view that advocates of prohibition are the ones who hope to benefit from the underground economy that will blossom as its result. The high taxes could be not only as personal or corporate income tax, but also as high tariffs on the import of goods. These high tariffs on imports make smuggling of those very goods lucrative. Also, politically, if there is a single party in power or a dictator, it is a sure sign that there is likely to be a high level of corruption, which in itself is a parallel underground economy. All of the above are signs that international managers have to be on the lookout for, since missing these signs could lead to a major mistake in estimating the size and potential of the market. Also, it could lead to ethical problems if the competitors are encouraging and are part of this underground economy (Erdinc, 2016). References Erdinc, Z. (2016). The reasons of underground economy, its jbepnet.com. The Reasons of Underground Economy, Its Results, Methods and the Turkish Case. Retrieved November 15, 2021, from Hot Topic: Leanne- Analyze Country Risk Assessment When looking at a country s risk assessment many factors are contributors to this. The country risk assessment shows the risk of investing in a specific country (Scott, 2020). Factors that could contribute to a countries risk could include political or economic instability, the risk of foreign exchange and rate, the aspects of that countries legal system, the structure of their banking system, taxation, and other influences such as technology or other unforeseen factors (International Trade Administration, N.D.). The country risk assessment analysis use tools such as the MSCI Indexes and OCED reports or other agencies to study the risk. The US is considered a country with a low risk (Scott, 2020). Country risk assessments should be looked at when considering investing in less developed countries. Companies when looking at branching out their business to foreign countries need to look at the country s risk assessment and take it into consideration. They need to know that their company will fit in with the economy of the country and boost them forward economically. This is a risk that needs to be analyzed long before the company moves operations to a foreign country and also it needs to be reviewed closely when a company has foreign operations to assess if something could present an issue to the company that they may choose to leave that country or change how they operate. International Trade Administration. (N.D.) Asses country risk. Scott, G. (2020, August 28). Country risk definition. Steph- Analyze- Analyze Country Risk Assessment The country risk assessment assessment evaluates the quantitative or qualitative value of the political, economic, social, and business risks of doing business in a particular country (Scott, 2021). The assessment is based off of two factors, medium-term rating and the short-term rating. Mediumterm rating, referred to as the country grade, measures economic imbalances, the quality of the business climate, and the likelihood of political hazards (Euler Hermes, 2021). The short-term rating is the countries risk level and identifies more immediate threats by focusing on the direction of economic output in the next 6-12 months by using macroeconomic indicators that can signal financial crisis as a result of a disruption to financial flows (Euler Hermes, 2021). India is a medium to higher risk country, like most countries it was impacted by COVID-19 and is trying to recover financially and on an economic level, a country that was already struggling economically. France, the country that I am using for my final project, is a low-risk country with a good rating. They have a well-diversified country, tourist traffic is high, and a good education system. One of the negatives impacting the countries rating is the high unemployment rate related to the dual labor markets. Economically the country is continuing to see growth despite the pandemic. Being able to see all of these facts that are impacting the economy and identifying any risks associated with the country, can have a large impact on management decisions. Countries that are seeing a consistent decrease in the economy or are subjected to corruption or political disputes, may be to risky to utilize valuable resources to enter the market in that region. References: How to assess country risk in international trade: Euler Hermes USA. How to Assess Country Risk in International Trade | Euler Hermes USA. (2021). Retrieved November 15, 2021, from Scott, G. (2021, May 19). Country risk definition. Investopedia. Retrieved November 15, 2021, from ten%20refers%20to%20the%20possibility,ratingagency%20reports%20for%20help%20in%20analyzing%20country%20risk. This post will discuss how laws, human resource management systems (HRMS) and culture impact managerial practices. There are several federal laws that impact the way that companies do business specifically related to hiring practices and employee/management relations. One of the key laws that impact hiring is Title VII of the Civil Rights Act of 1964 which prohibits discrimination based on race, color, religion, sex, or national origin. The Age Discrimination in Employment Act extends the list of discrimination categories to include employees 40 years and older (Benjamin, 2019). These laws make it illegal for a company to refuse hire of an employee or dismiss an employee for any of the reasons mentioned and the employer cannot retaliate against the employee for making a charge or filing a complaint of Ameila- discrimination. These laws are intended to give all people equal opportunities when it comes to hiring practices. Organizational culture is impacted by numerous things but human resource practices like recruitment, selection, and training impact the stability and performance of the workforce and therefore the overall culture of the organization (Tutorialspoint, 2021). If there are systemic problems with the human resource processes it could lead to less employee engagement and that negatively impacts the culture. The last thing to discuss is the impact that a human resource management system has on practices. A HRMS is a suite of software applications that are used to manage different aspects of human resources throughout the employee lifecycle (Holliday, 2020). An effective HRMS enables company compliance with changing laws and regulations while understanding its workforce. The ideal situation is to have one system that would execute multiple HR functions. As an employee, I must access different systems for basically every aspect of employment. I know that there are HRM systems that allow companies to manage multiple functions, such as payroll, learning management, workforce development, etc. We utilize a great system for workforce development that allows us to customize Individualized Development Plans. Leadership has made it mandatory for employees to complete this annually, which impacts managerial practices and allows employees to get feedback from supervisors for career paths and development. We use a different tool for learning management and yet another for accessing employee records and another for payroll information. Oh, and did I mention that there is another system for accessing benefits? You get the picture. HRM systems are intended to make tracking and managing HR functions more streamlined and efficient, but my current employer uses 15 different systems for 15 different functions which does not seem more streamlined or efficient. Benjamin, T. (2019). Laws affecting human resource management. Chron. Holliday, M. (2020). What is a HRMS? Oracle NetSuite. Tutorials Point. (2021). HRM-Organizational culture. Tutorialspoint. e_management/human_resource_management_organizational_culture. htm Examine the physical environment as an impact point on business locations Oluw- The Physical environment is a vital component of the business location in which one intends to operate or where one already runs a business irrespective of whether it is conventional or online, small or big. It is the availability of resources that you need to run your business effectively and efficiently with the business location playing a major role. The physical environment is the physical location, space, and any other thing that physically impacts one and the business, and this can help influence the bottom line of the business. The physical environment of a company can have a substantial impact on the way customers or clients feel about the business. A business location is simply the surrounding of the business. It s the total of both external and internal factors that influence the business. What are those aspects lying inside or outside the business field that affect its operations substantially? For instance, people who consume your products or services lie outside your business. They significantly affect your business operations. Why? It s because their decision to buy or not to buy from you impacts the success of your business. Changes in the business location affect the business either positively or negatively. It is therefore very essential to be knowledgeable all the time about the business location in which one operates. This can be done by making surveys and observing the trends of the business critically. Additionally, one can ask questions and visit places where you can get useful information about the business environment in which you operate. Understanding the physical environment enables one to plan well for business locations from an informed point of view. If the business is an existing one, discovering the physical environment helps one to grow a successful business. Also helps, in knowing the resources needed for a particular type of business as these resources vary from business to business. One, therefore, needs to consider so importantly the physical location in which you intend to
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