Homework Question on Globalized Business
- Most business topics are in general ultimately related. Given this, for globalized business how would you describe a relationship (or multiple relationships) between Institutional voids (i.e. ethical behavior, the public good, and being a good citizen represented by Rose Ackerman, Donaldson, and the corporate documentary) and Political Business Cycles in Emerging Economies (Martinez and Santiso, and Valeer, Block et al) .
- Use the sources below and if you need you could use the web to gather more information for answering the question the corporate video url:
Homework Answer on Globalized Business
The relationship between ethic and good behavior with political business cycle is based on a mutual agreement or understanding. This is because of the fact that businesses thrive in a corruption free environment. In the event that political parties or leadership engage in uncouth behaviors, investors are more likely to shy away from investing in the country due to unfavorable climate created by political turmoil.
Rose found out that corruption is detrimental to business growth and prospects in the market because of insufficiency and ineffectiveness caused due to unfavorable deals made by politicians (Rose-Ackerman 1890). The government therefore needs to establish a good working relationship with the private sector to look at matters that affect business operation. Thus, they should work collaboratively with institutions, such as the transparency international, economic corporation and development (OECD) and international chamber of commerce.
On the other hand, the political business cycle affects investor’s portfolio in making investment decisions that affect the country’s economic situation. Investment in capital market is widely and largely dependent on the political decision made and election outcomes. This is because the party that wins the election has a lot to do with the policies adopted by the entire economy. The policies affect the way businesses are conducted, especially regarding import and export business.