Business Classmates Responses-perfecto

For this assignment:

Please reply to 3 classmate’s post that is below.

150 words or more

APA format

3 scholar references

In cite citation

Response 3.

The key term I’ve decided to discuss is Global Business. Global business is essentially international business and it is of interest to me as it is an integral factor that drives our economy. Global business has a monumental impact on all our lives and without it our livelihood would not be the same. In essence, we do business and trade with other countries to satisfy our country’s wants and needs. The products we don’t have in our country are imported globally, and we export products that others need as well. Global business is important as it includes all domestic business with transactions in the international market and it reaches multinational businesses. Understanding global business is an interest of mine and it may lead to more knowledge in cross culture communication and commerce.

Explanation

            Global business could be considered broadly as conducting business without boundaries. Additionally, global business takes place domestically and internationally through trade, transactions, commerce, and the exchange of products and services. Global business also relates to individual business entities resulting from that local entity exchanging products, services, or capital with an entity from another nation. The exchange is a part of global business due to an international transaction. Essentially, a business that often partakes in international transactions qualifies to be a global business. Important factors to consider in global business are the geographical scope in which it operates, understanding of the cultural influences that will affect marketing, taking account of market factors such as foreign exchange rates, and management practices of global business.

Major Article Summary

            The study of business ethics research on a global perspective provides more information on global business and the ethics involved. The findings include that global business ethics became a popular and important mechanism for building better business practices internationally between different countries. In addition, The United States remains the top producer of business ethics research to help others develop globally in business (Chan et al., 2016).

            The article Global Competitiveness and Local Business Development written by Ashley Zuelke (2016) focuses on the global competitiveness and local business development in the U.S. the topics discussed include the aspects of the association between export trade and economic development including concepts considering expansion and job equality, the roles of Economic Development Organizations, and the state’s approaches which focus on the development and growth in the international trade (Zuelke, 2016).

            Global Oceans Governance: New and Emerging Issues written by Campbell et al., (2016) provides information on the increased interest in oceans leading to new and renewed global governance efforts directed toward ocean issues in areas of food production, biodiversity conservation, industrialization, global environmental change, and pollution. A review of new and emerging issues in global oceans governance is given contemporary interest in oceans with global business in mind. Essentially, interest is driven by both recognition of the economic potential of oceans and its development opportunity, as well as the role in global environmental processes (Campbell et al., 2016).

            Institutions, Principles and Judgement: The Relevance of the Natural Law Tradition For Articulating Business in a Global Context is an article written by Ana Marta Gonzalez (2015) that argues the relevance of natural law for framing and addressing ethical issues raised by the practice of business in a global context. The article further mentions that the classical natural law is seen as the law of practical reason which leads to cultural realizations of humanity and results in stimulation of personal and common good as well as sustainable development globally (Gonzalez, 2015).

            Authors Jimenez-Sanchez Gerardo and G.J. Scoles (2015) wrote an article on Genomics which is the study of genes and their roles in inheritance. In addition, genomics has generated assets to propel innovation and address global challenges such as human health, food security, energy source, and environmental sustainability (Jimenez-Sanchez & Scoles, 2015). Genomics plays a major role to meet bioeconomic agendas and local needs. The innovation contributes to global business due to individualized, predictive, and preventive medical practice beneficial to countries.

Discussion

            A. The articles I have focused on relate directly to global business as the information pertain to conducting business on a global scale. The articles mention the difference between global and domestic business management observed in a nation’s culture. Also, the differences between a domestic business and a global enterprise include domestic businesses operating at the locally, where a global enterprise operates within foreign cultures. In essence, the work mentioned also considers the market factors in global and domestic business management. The market factors include demographic, sociologic, and economic forces that varies from regions. Global business is a broad topic that relates to the articles as they contain information about conducting business internationally and the methods used to do so. The articles directly relate to the assigned work resulting in the discussion of international business and the means to conduct transactions globally.

            B. All the articles that I have researched tie directly to each other as they all have the conduct of global business in common. Consequently, all the articles have the central theme of the development of business among different countries and what tools lead to a nation’s growth. Conducting global business will help improve any type of economy due to acquiring resources that are needed to increase and drive growth within a nation. International business will always be a factor since everything we have or acquire are a result of global trade and exchange between different nations. In conclusion, the study of global business is important as it will always be a topic that we deal with due to the fact that our country, as well as others, depend on it.

Response 4

Key Term and Why You Are Interested in: It I chose the key term Operational Risk because of my current position at work, where I work in operations management.  Within my work, I help to implement processes, and work to improve operational processes.  With all processes, there are risk of failure.  If they fail, there could be a loss to the company.  If time is lost, then that will affect the bottom line or reduce forecasted yields. I am interested in diving into this topic further to gain a further understanding of operational risk.  I sometimes get focused on how operational risk may affect my portion of work and I don’t look outside of my personal work functions. There are much broader aspects of operational risk, and I believe this research will help me to have a better understanding of those risk. Explanation of the Key Term : In any business, there is an operation department that makes that business work and function.  In my work experience this is the backbone for any business.  Operations brings the product or service from conception to delivery in the marketplace.  Generally, it is made up of lots of moving parts and individuals within that department.  Operational risk is the potential for business loss.  If something is not done correctly, or does not function properly, then the operations of the company could be at risk.  Essentially the company will lose money or will not make the expected profits, if the risk is realized.  Risk management allows for corporate governance over a business and helps to assure proper return to shareholders (Croitoru, 2014). In my current function at work, it is my job to forecast potential operational risk, and help to mitigate those risks.  Major Article Summary: In the article, Measuring and Managing Operational Risk, written by Samir Shah (Shah, 2002), the author notes that risk managers are searching for means and methods to measure and manage the risk of operations. Two characteristics of operational risk were presented; specific and dynamic risk (2002).The first risk characteristic would be the risk that is specific to the business.  For instance, the type of business will determine what type of employee or process the company may have or need to prevent risk.  The type of industry will give indications as to what historical risk there would be in that type of business.  For example, a construction company will need construction workers that are safe operators. History would let us know that there is high risk with construction workers across the construction industry. Knowing what the risk is, will help the company to plan for those risks. The second risk characteristic is dynamic risk, or the changing risk. Company processes may change or evolve over the course of time. Organizational structure, leadership or ownership may change with the hiring or firing of leadership, or sale of stock by an owner.  Corporate culture may change as well.  Some companies may have had a strong focus on giving back to the community and not so much on large profits.  If that dynamics of the company changes and the company begins to focus on profits, the culture may change.  With this change, the employees may not the same fit within the organization.  The risk manager must consider that if the change is made, will it affect the company, and is the risk worth the change. The article suggests that in most cases, risk modeling is helpful to identify and prevent risk occurrence (2002).  Risk can be found by historic review of the company, or industry data.  Other methods include expert input.  Many companies use combinations of both methods to help in the efforts of identifications (2002).The author explains that risk modeling is an ever-changing practice.  Computerized risk modeling software is changing everyday as technology improves and more historic data is logged.  This is very helpful for operational risk management and allows lessons learned from the past to be used in the current and future states of operational risk. What is risk?  Risk is the potential for something to happen in the future.  Most businesses focus on adverse future risk and look to mitigate that risk prior to it happening.  Operational risk managers must look to identify risk impacts and the chances of the risk to occur (Prokop, & Pfeifer, 2013).  At the beginning of the research I had an idea of how operational risk applied to my job, but did not have much further information.  After researching this subject further and reading the article I was intrigued by the history of operational risk management, and its evolution.  The article was very helpful for me to see the two key ways to determine risk.  I will now be able to subdivide risk as specific and dynamic risk. Prior to this research, I had not given any thought to modeling or looking for software to use in risk management. Currently I log lessons learned to obtain historic data, however software may help to lessen, the lessons learned.  Something I did not expect to learn when I chose this key term. The article researched focused on two key aspects of operational risk and how to help manage that risk.  Other works researched went into more specific types of business. For instance, the article Operational Risk Modeling and Management takes the approach that operation risk is a key function in financial and banking businesses (2014). Risk such as these are looked at heavily by bank regulators. Regulations are implemented  to limit risk in banks.  Another article went into far more broader aspects for operational risk and key risk indicators (Andersen, Häger, & Vormeland, 2016). This article stated that KRI’s should be relevant, measurable, predictive, easy to monitor auditable and comparable (2016). In comparison, the feature article only focused on two aspects of risk, those aspects can be applied across the board to all businesses.

Response 5 WTO

Key Term and Interest

            For this week’s forum, I chose the World Trade Organization.  This key term interests me because having been in the U.S. Navy and traveled different countries, has given me greater academic curiosity as to the different aspects that make up the World Trade Organization and its multinational involvement.  It also intrigues me that this one organization has been key in developing better trade relationships between nations, despite all the different cultural, economic and business characteristics of each region.  However, the World Trade Organization’s focus in regards to the resolution of disputes between nations has also played a part in cultivating trade cordialities. 

Explanation of Key Term

Established in 1992, the World Trade Organization assists in the formation of trade agreements between nations by instituting fair trade negotiations that deal with laws, policies, and various barriers to trade (World Trade Organization, 2017).  However, when disagreements arise between countries, the World Trade Organization steps in to legally minister ongoing issues and helps to diffuse matters affecting all parties involved (World Trade Organization, 2017).  As of today, the World Trade Organization has 164 participating countries and encompasses 16 distinct multilateral trade contracts and two plurilateral trade contracts between all member nations (World Trade Organization, 2017).  While all nations are not fully developed, the World Trade Organization is continually fostering initiatives for undeveloped countries into becoming members to further progress international free trade (World Trade Organization, 2017). 

Major Article Summary

In their article, “What Is Litigation in the World Trade Organization Worth?”, Michael M. Bechtel and Thomas Sattler (2015) examine the effects of litigation processes in the World Trade Organization, and thus, involving principal, third, and neutral participants.  As part of their research, Bechtel and Sattler analyzed several World Trade Organization disputes along with data corresponding to economic power, conflict, joint democracies, trade flows and trade variables that constitute why some nations take part as principal parties in forming disputes (2015, p. 388-391).  According to Bechtel and Sattler, past research has brought into question the reliability of the World Trade Organization’s dispute systems, and whether small undeveloped countries have the same amount of legal standing against wrongful countries, as do major ruling countries (2015, p. 376).  Their study suggested that due to not having enough legal, monetary, and influential resources, small undeveloped countries are more likely to enter trade disputes as third parties or remain neutral (Bechtel & Sattler, 2015, p. 376).  Bechtel and Sattler’s study proved that by entering dispute panels as third parties, poorer countries profited greatly in terms of trade exports through the principal party’s legal efforts against the accused country (2015, p. 382, 395).  However, by remaining neutral, poorer countries benefited by observing the outcomes of the dispute panels, acquiring legal understanding of the World Trade Organization’s procedures, and gained clearer advantages to further their own complaints in the future (Bechtel & Sattler, 2015, p. 384, 397-398).  Though regardless of the position that a nation takes during a dispute, there are consequential spillover effects in which not only third party countries benefit from, but surrounding communities tend to have advantages from the rulings also (Bechtel & Sattler, 2015, p. 398).  Hence, according to Bechtel and Sattler, there was substantial evidence that the World Trade Organization’s dispute systems have positive results on eliminating barriers to trade, fostering economic growth and improving exports for both undeveloped and developed nations (2015, p. 394).

Discussion of Cited Works

Bechtel and Sattler’s article relates to the World Trade Organization because the dispute process is a major component of the organization.  When countries do not agree, or have trouble entering into trade agreements, the World Trade Organization is the mediator through which both nations can come into contracts with one another.  The process in which the World Trade Organization uses is called the International Centre for Settlement of Investments Disputes (ICSID) and all international members can partake in legal issues.  This article also relates to all other 4 scholarly articles because they all pertain information concerning the World Trade Organization and the dispute resolution mechanisms.