work 5

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Jomo Kenyatta University of Agriculture and Technology *

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201

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Management

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Nov 24, 2024

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docx

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Uploaded by DoctorTurtle20039

Question 1 Ideologies and political systems can have a big impact on how organizations work. Firstly, the rules and regulations governing businesses are often a reflection of the prevailing beliefs and ideas of those in power. This regulatory environment can be molded to promote or hinder certain economic activities. For instance, a government guided by environmentalist principles may impose stringent regulations on industries with high carbon footprints, affecting their operational strategies and investment choices. Secondly, the political ideologies espoused by a government can create challenges for organizations by shaping the dissemination of information. In some cases, governments may propagate particular messages or control the narrative, making it difficult for businesses to operate efficiently. For instance, in authoritarian regimes, state-controlled media may disseminate propaganda that distorts market realities, hindering organizations' ability to make informed decisions and adapt to changing circumstances. Thirdly, the intertwining of ideologies and political systems can give rise to a phenomenon known as "Crony capitalism." This occurs when businesses enjoy preferential treatment and advantages due to their close affiliations with influential political figures. These special privileges can include easier access to government contracts, regulatory exemptions, or financial support. This dynamic distorts fair competition and can lead to market inefficiencies, disadvantaging businesses without such connections. Finally, when politics and business become overly entwined, it can pose challenges to the proper functioning of a free market. This is especially pronounced in situations where

government intervention and regulation excessively favor certain industries or companies. Such interference can distort market forces, discourage innovation, and reduce competition. It may also lead to monopolistic practices that hinder consumer choice and hinder economic dynamism. In Russia and China, where the government owns a lot of businesses, they might put too many rules and restrictions on how companies operate (Zhao, 2012). This could make it difficult for a truly free global economy to exist. On the other hand, the European Union follows a more capitalist approach, which generally benefits businesses because it focuses on efficiency and making money. Question 2 Principle of Sovereignty: MNCs are bound by this principle, requiring them to honor the sovereignty of the countries in which they operate. For instance, if an employee commits a crime in a foreign country, that country has the authority to prosecute them, even if they are citizens of another country and work for a company based elsewhere. This emphasizes the importance of selecting reliable employees in international locations and ensuring they are aware of the legal requirements in the countries they operate in ( Terry, 2020). Nationality Principle: This principle dictates that MNC employees abroad remain subject to the rules and jurisdiction of their company, regardless of their physical location. For example, if a company prohibits its employees from accepting gifts exceeding a certain value, this rule applies even if it contradicts customary practices in the foreign country where the employee is stationed ( Terry, 2020). In practice, this principle serves as a means for MNCs to maintain consistency and uphold their corporate standards across diverse international environments, ensuring a unified code of conduct for their global workforce. By enforcing the Nationality

Principle, MNCs can mitigate potential cultural and ethical conflicts that may arise in the course of their international operations. Territoriality Principle: MNCs must consider the policies and laws of the countries where they conduct business due to this principle, as it grants those countries jurisdiction over actions that occur within their borders. For instance, if an airline operates flights to a country with specific emissions standards for aircraft, the aircraft must meet those criteria upon landing ( Terry, 2020). Compliance with the Territoriality Principle is essential for MNCs to navigate the intricacies of international business, ensuring that they respect and abide by the laws and regulations of the countries in which they operate. Protective Principle: This principle enables governments to justify intervention in MNC actions, even if an incident occurs outside the country. For example, if an MNC has Jewish employees and policies to safeguard their rights and shares during a historical period like WWII, it may take reasonable actions to protect its Jewish employees, even if such protection is not mandated in the host country. The Protective Principle underscores the government's responsibility to safeguard the welfare of its citizens abroad and can sometimes lead to diplomatic or legal actions if the government believes that the rights or safety of its citizens working for an MNC are at risk. It is an important aspect of international law and relations that MNCs must be aware of when conducting business on a global scale. Principle of Comity: MNCs are obligated to recognize and respect the governments and laws of the countries they engage with in business. This could entail a German parent company adhering to Generally Accepted Accounting Principles (GAAP) and Federal Acquisition Regulation (FAR) policies for its American subsidiaries, despite differing accounting regulations in Germany ( Terry, 2020). By adhering to the Principle of Comity, MNCs aim to foster goodwill

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and constructive relationships with host countries and their governments. This principle underscores the importance of harmonizing business practices with the legal and regulatory norms of the countries in which MNCs operate, thereby promoting cross-border cooperation and compliance with international standards (Terry, 2020). Question 3 The adoption of technology in developing nations has brought about significant economic changes, including reduced production costs, the establishment of quality standards, and the facilitation of long-distance communication. However, this transformation is predominantly marked by adaptation rather than innovation. Moreover, recognizing the necessity for technology that aligns with the capabilities of the impoverished population in developing countries is a recent development. A major obstacle in the diffusion of technology within low-income nations persists due to its unequal distribution and limited reach across the country [ CITATION Joe08 \l 1033 ]. To effectively participate in a high-tech global market, developing countries require individuals with technical expertise. Challenges emerge when nations attempt hasty advancements in education, resulting in graduates without adequate infrastructure support. Affordable access to education, well-equipped educational institutions, and incentives for educated individuals to remain in their home countries are all vital components [ CITATION Joe08 \l 1033 ]. retaining educated individuals within their home countries is essential. Brain drain, where talented individuals emigrate to more developed nations for better opportunities, can hinder a developing country's technological advancement. To combat this, developing

countries should implement incentives and opportunities that encourage their educated citizens to stay and contribute to their nation's growth and development In the past two decades, mobile telecommunications and the Internet have made remarkable progress. Vodafone, as a market leader, has played a pivotal role in expanding global access to information and connectivity round the clock. Mobile phone technology has had a profound impact on economic development, especially in countries in Africa. Many families in remote rural areas now have access to communication services, eliminating the need for costly and challenging landline installations. In essence, the progress made in mobile telecommunications and Internet technology, with companies like Vodafone leading the way, has not only revolutionized the way we connect and communicate but has also been a driving force behind socio-economic development, especially in regions where traditional infrastructure is limited. Question 4 Developing countries are currently experiencing significant progress in their overall development. Many state-run industries in these nations are plagued by corruption and often operate inefficiently, which is driving a shift towards privatization. Privately-owned industries are seen as more streamlined and less susceptible to corruption compared to their government- run counterparts ( Molz, 2015). This approach is being widely adopted in developing countries like India and others. High levels of corruption within government sectors and the mismanagement of funds due to the negligence of government employees have been primary factors motivating the transition of government-run companies to the private sector. Private companies typically enforce stricter rules and regulations, resulting in more efficient fund utilization and enhanced departmental effectiveness.

Furthermore, multinational companies, predominantly privately owned, benefit significantly from this approach. It enables them to generate greater revenue from the same market. Private multinational companies tend to have well-defined codes of conduct and structured approaches that boost overall efficiency and productivity in international markets. This, in turn, fosters a more ethical working environment and enhances their standing within the global marketplace. Conclusion How organizations work can be greatly influenced by ideologies and political systems. These affect rules and regulations, impacting economic activities. Political ideologies can also affect information sharing, making business operations tricky in certain cases, especially in authoritarian regimes. In developing nations, technology adoption is transforming economies, but challenges like infrastructure and education need addressing. Companies like Vodafone have played a crucial role in expanding connectivity, particularly in remote areas. Developing countries must also retain educated individuals to drive technological advancement. Finally, many developing nations are shifting towards privatization to combat corruption and inefficiency in state-run industries, benefiting private companies and improving overall development.

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References Cackler, J. (2008). Stanford University . Retrieved from Computers, Ethics, and Social Responsibility: https://cs.stanford.edu/people/eroberts/cs181/projects/2007-08/developing- economies Molz, R. (2015). Privatization in developing countries. Columbia Journal of World Business , 25 (1-2), 17+. https://link.gale.com/apps/doc/A9019926/AONE? u=googlescholar&sid=bookmark-AONE&xid=fdcbc040 Terry, P. C. (2020). Enforcing US foreign policy by imposing unilateral secondary sanctions: Is might right in public international law?. Wash. Int'l LJ , 30 , 1 Zhao, M. (2012). CSR-based political legitimacy strategy: Managing the state by doing good in China and Russia. Journal of business ethics , 111 , 439-460

work 5

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