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Based on the video's description of Wal-mart, Adam Smith would defend most of Wal-marts practices, but not all of them. Adam Smith is in favor of a free market and competitive landscape. In a free market, maintaining competition is key and restricting trade would hinder this. Limited government involvement in the market is imperative. At the same time, Smith is not in favor of monopolies, which eliminate all competition. If a monopoly exists then the government can step in and dissolve it. Wal-mart is a powerful company and does exhibit some monopolistic qualities, but it is not a monopoly in the true sense of the word. One of Wal-marts essential tactics is its use of outsourcing to maintain low pricing.Smith would agree with the use of outsourcing because its cost-saving benefits will help create wealth. Creating restrictions to encourage homegrown production will cost more overall than the benefit. Restrictions do not create wealth, as described in Smith's wine production in Scotland example. Wal-mart keeps the market competitive and forces other retailers to innovate and find better ways to do business.
Sources: Notes, Video (Is Wal-mart Good For America?), Saving Adam Smith, http://deoxy.org/korten_betrayal.htm, http://thewritingonthewal.net/?p=779
Two of Adam Smith's fundamental ideas, known as "fellow-feeling" and the "invisible hand" would be useful in addressing some of the global issues present today. People can established a sense of "fellow-feeling' (pg. 131) by putting themselves in otherpeople's shoes. One can become more understanding of others and different cultures through this concept. For example, an American can try to empathize with someone from the Middle East by reflecting on his or her struggles. Using empathy, people can learn to be more tolerant and understanding of others. They can help find solutions and build bridges rather than building walls.Without fellow-feeling, people would be intolerant of one another.
The concept of the "Invisible hand" (pg. 62)combined with capitalistic ideals can lead to the advancement of society. When looking at many impoverished nations, a common attribute among them is a highly restrictive government on the economics. When the market becomes chaotic in these nations, the government feels the need to intervene and try to remedy the issue. The invisible hand (126) tells us that a self-regulated market will fix itself without the need for centralized control. Government intervention often times can make problems even worse. The invisible hand thrives when there is high competition and trust, as well as a lack of harmful external forces. If these countries can integrate these ideas within their fiscal policies, wealth can be created and societies will improve greatly.
Sources: Notes, Saving Adam Smith
Adam Smith's "impartial spectator is a useful tool for accountants to reflect on. An impartial spectator (195) is someone who sees himself or herself the same way other people see them. Having the mindset of an impartial spectator creates a conscience, which guides behavior. In addition, an impartial spectator looks out for others or the organization rather than focusing on personal endeavors. There are several examples that can be given to illustrate this in accounting world. In the external and internal auditing field, accountants must act as a neutral party from the outside looking in. Auditors must maintain independence from clients. They need to be mindful to not cross any boundaries and not engage themselves with a client outside of the audit.Integrity must also be maintained at all times in the accounting field. Accurate reporting and standards need to be followed, rather than always doing what is told which can be illegal. Managerial accountants must maintain impartiality when to comes to analyzing results of data, such as a budget forecast. A biased outlook can sway management to make a poor decision that is not in the best interest of the company.
Sources: Notes, Saving Adam Smith, http://hbswk.hbs.edu/item/5168.html, http://books.google.com/books?id=fE9STcvKw-QC&pg=PA251&lpg=PA251&dq=impartial+accounting&source=bl&ots=KF4hWXQ9_T&sig=CVIY4166GNchm1D7hRcDJjz2E4E&hl=en&ei=ooZ6TeG8HaOD0QGakoTMAw&sa=X&oi=book_result&ct=result&resnum=3&ved=0CDIQ6AEwAg#v=onepage&q=impartial%20accounting&f=false
According to the novel Saving Adam Smith, greed is not good for society and greed is not the correct basis for a free market economy. Adam Smith states that the basis for a free market economy starts with establishing justice first. After this happens, the market must have competition and support specialization. In addition, the government must not act in greed. It must invest in infrastructure, education, and national defense. Smith also points out "the highest profits are in those countries going rapidly to ruin." Poor countries use greed to create wealth for a few and tend to have the most monopolies and restrictions on free trade.
The topic of 'self-interest' (pg. 62) is addressed in the book by separating selfishness and self-loving. Acting selfishly involves harming others; while, with self-loving, you're improving upon self without hurting others. Self-love is meant to "inspire effort and production." You're being self-sustaining and not a burden on society, as well as benefiting others. Acting in your self-interest and pursuing monetary gain has indirect positive effects on society as well. Within a competitive free market, capital is gained over time and wealth is created. This leads to an advancement of society andinnovation that benefits everyone.
Source: Notes, Saving Adam Smith
The video "Is Wal-mart Good For America?" focuses primarily on the negatives of outsourcing. At the same time, the video "llicit: The Dark Trade" looks at the negative impact of technology and globalization. Nevertheless, several positive effects of outsourcing and globalization are mentioned in both videos. Outsourcing and offshoring has allowed companies to reap massive savings, leading to a number of benefits. The savings are trickled down to consumers, who are the biggest beneficiary of these cost savings. Not only do goods cost much less to the consumer, but they are often times the same or even better quality than locally made goods. This happens because of the low-cost, hard working labor in countries like China who have such high populations. These high-quality, but affordable goods allow society as a whole to raise its standard of living. On another note, outsourcing leads to a loss in low-end jobs in America. What isn't seen in statistics is that new, high-end jobs are being created that supplement the loss in jobs.
Globalization and advancement technology allows for illicit trade to thrive, where some positive effects can be seen. In China, this is a big business where jobs are produced, revenue is created, and government officials are kept happy through additional funds. Moreover, affordable goods are produced and distributed within the supply chain for consumers to enjoy. While this new technology coupled with globalization has aided criminals, it can also be used against them as well.
Sources: Notes, Video (Is Wal-mart Good For America?) & (Illicit: The Dark Trade)
The video 'Is Wal-Mart Good For America?' looks primarily at the negative side of outsourcing. The video 'Illicit: The Dark trade' tackles issues such as black-market goods and terrorism, which has a negative outlook toward globalization. One of the big problems with outsourcing and its low-costs is that it is shifting power to retailers, while manufacturers are becoming their underlings. One example was with Rubbermaid, whom relied on Wal-Mart as its biggest client. The two companies eventually conflicted over pricing and halted business together. Rubbermaid plunged without Wal-Mart's business. Another problem with Wal-mart's outsourcing, is that it has caused many factory/labor jobs in America to disappear and reappear in China. Wal-mart's strategy affected not only the way it did business, but the way its competitors did business as well. In order to compete with Wal-Mart, other companies are forced to follow suit and outsource its operations to keep prices down. If companies refused, they'd be forced to shutdown and more jobs would be lost.
Globalization and technology have shrunken the world, along with creating problems. For example, electronic banking has made it easier for criminals to move around and clean dirty money. As described in the video Illicit, the Black market network has thrived under globalization. This market is meant to circulate harmless goods, but it has created a deeper layer of corruption that includes drugs and weaponry. While this underground economy has created jobs for the impoverished, it doesn't help bring people out of poverty.
Source: Notes, Video (Is Wal-mart Good For America?) & (Illicit: The Dark Trade)
Economic advancement and globalization are two major factors that are changing today's society. Countries' economies are benefiting greatly once new technology and capitalistic ideals are introduced to society. Poverty levels are diminishing greatly and more and more people are becoming successful entrepreneurs. Labor work is leaving the US and entering nations such as China, prompting societal change for both countries. Outsourcing has allowed China to make leaps and bounds ahead of what they were decades ago. On the flipside, America is losing low-end jobs, but gaining high-end jobs instead. The world is becoming globalized, leading to more collaboration among different countries and more homogeneity.
Globalization and technology have shrunken the world, includingillicit trade issues that change society as well. The Internet has created a new avenue for crime and is allowing criminals to elude capture. At the same time, new methods of crime fighting are surfacing that aid law enforcement. Also, people from undeveloped countries try to gain illegal access into the developed world. This has facilitated human trafficking into a huge business. Moreover, illicit trade gives power to crime syndicates, which gives them power to sway votes and control politics. Criminals are incorporating themselves into politics, while politicians are turning into criminals. Having control of politics prompts major societal change that affects so many lives.
Source: Notes, Video (Is Wal-mart Good For America?) & (Illicit: The Dark Trade)
The world is ever changing as we move farther into the future. Becoming an untouchable in my career field requires many different attributes that weren't required in the past. In a flat world, an attribute that is needed is strong communication skills. Moreover, a person needs to be a good collaborator and team leader. One must also be a versatilist to be successful. This is someone who has many skills and the ability to adjust to new curriculum. To be a versatilist, one must be able to learn and show a passion for learning. I have personally been cultivating these skill-sets throughout graduate school and work experience. For a 7-month period, I was a full-time graduate student and working as an accounting co-op. My vigorous schedule helped me develop many skills and build character.
Reflecting on Daniel Pink's six sensesare also important to becoming an untouchable. They revolve around emphasis on right brain use rather than left-brain use. One of the senses is known as 'Symphony,' which is the ability fuse information and visualize the big picture. Another is 'Design,' which involves putting your artistic creativity to use. This is difficult to outsource. These are all right-brain skills, which comes naturally to me since I am left-handed. I've spent a lifetime nurturing these skills since it is what I do naturally. Combining ideas from the "Six Senses" and "New Middlers" will give me a comparative advantage over others and give the ability to invent the future.
Sources: Notes, The World Is Flat, Videos (A Whole New Mind), http://wiki.bath.ac.uk/display/charlescornelius/Daniel+Pink's+Six+Senses
The flattening of the world has effected and will continue to effect many industries. This is especially true in the auditing field. Technology has had a major impact on business practices, company operations, and the regulatory environment. This has caused companies to reevaluate risk and improve risk management. In addition, outsourcing and offshoring have changed the functionality of internal audits. Because companies are now turning to outsourcing and offshoring, they must be cautious of risks associated with cultural barriers.
There has been a shift from the traditional methods of auditing to real-time or continuous auditing means. As workflow software for auditing advances, the audit process becomes more streamlined and continuous auditing improves. Additionally, new tools are becoming available to help detect fraud. These tools allow for more thorough investigation when performing a forensic audit. On the flipside, perpetrators are now able to use technology as an advantage to disguise fraud. As technology continues to improve, perpetrators are discovering innovativeways to create fraud. To combat this, auditors are continuously improving audit techniques and inventing better tools. Because of the flatteners, the auditing field is ever changing and will continue to change as we move farther into the future.
Sources: Notes, The World Is Flat, http://www.directorship.com/five-trends-reshaping-the-internal-audit-function/
Many would argue that 'Social Media' has become the next unstoppable force that has and will continue to flatten theworld. Social Media allows people connect more often and easily and has made communication better than ever before. People are interacting around the world, bringing people closer together and flattening the world in the process. In addition, social media allows for the free flow of information and thoughts across the web. Several examples can be described to illustrate this. Social networking websites such as 'Facebook' and 'Twitter' are empowering their users. Users can post comments that gain instant credibility through these social media tools without the need for appropriate sources. 'Youtube' allows ordinary people to post videos that help them gain exposure and express ideas and hard work. Video bloggers can become Internet sensations over night. 'Wikipedia' allows people to collaborate to create useful information about any topic, where anyone from anywhere can be an author. Customers can now review products over the Internet. This feedback from users is seen as a primary source of reliable information for many people looking to buy goods. Companies are now following suit and using social media tools to facilitate collaboration. Deloitte is one company that utilizes a homegrown social networking platform for its consultants. As one can see, social media is a new wave communication method that has become a worldwide phenomenon. It is shrinking our world more than ever before.
Source: Notes, http://blog.centiv.com/?tag=world-is-flat, http://en.wikipedia.org/wiki/Deloitte
Now that he has legal right to his land, Eusebio can now earn a better living. With the aid of the flatteners, useful tools can be introduced to Eusebio, which can be a blessing. One major benefit coming from the flatteners is that it will help Eusebio connect with others. Personal computers and the Internet can allow Eusebio to collaborate with others, purchase farming supplies/equipment, and find workers and buyers. Acquiring a mobile phone can do much of the same as well. By introducing new forms of supply-chain tactics, he could tank advantage of streamlined techniques to improve his practices. Also, Eusebio used many far out-dated forms of agriculture and irrigation. New technology, workflow software, equipment, and consultation can allow his production to skyrocket. Through "Informing," Eusebio can discover a massive amount of information on the web that can help his farm. Through "Insourcing," Eusebio can perform services for other farms or companies in the area. There is a lot of potential for Eusebio, because the land he is using is already contains rich soil. Through use of the flatteners, Eusebio's farm can flourish tremendously.
Sources: Notes, The World Is Flat, Video (Eusebio's Dream), http://en.wikipedia.org/wiki/The_World_Is_Flat
Microcredit is microfinance project introduced in impoverish areas of the world, such as Bangladesh, and has become a huge success. Bangladesh is an especially poor country that can barely feed itself. Muhammad Yunus formed the Grameen Bank, which granted loans of small amounts to primarily poor women. The intent of these to loans is to createsuccessful entrepreneurs who can create income for themselves and their families. These loans allow participants to purchase livestock, supplies, food, etc. to help stimulate their small businesses. The concept has had a huge impact on people's lives, where impoverished people can now gradually improve their quality of life and get out of poverty. Because of the high rate of success, similar concepts of microfinance are gaining in popularity in other parts of the world, even poor areas of the U.S. Despite less popularity in the states, those who do participate appearbe benefiting.
Sources: http://en.wikipedia.org/wiki/Microcredit, Notes, Video
Many have believed that globalization and Americanization are two ideas that go hand in hand. After the fall of the Berlin Wall, American-based companies, brands, products, and entertainment were saturating the world market. This onslaught of American culture was homogenizing other countries and their cultures. Even American pop culture has had a strong influence on the way international people speak and dress.
More importantly, America's economic views have had a large impact as well. To be a factor in the global market, it has become necessity for countries like China and India to do business with America. This has caused many countries to learn English as a second language. What we are seeing are countries that are following the American model to improve upon themselves. It has become so vital to follow our lead in order to survive in the flat world. Nations are now utilizing capitalistic ideals, because it has been such successful model for America.
Globalization and Americanization has worked in unison so effectively that it has set off a hostile response against it. Many feel that their society is losing culture. People are finding inefficiency in tradition and, as a result, are slowly abandoning it. Fortunately, movements have been formed to preserve culture and keep Americanization at bay. Nevertheless, Americanization/Globalization is such a powerful force that it is continuously reshaping the world as know it.
Sources: Notes, The World Is Flat
There are a number of reasons why Muslims blame America and the West for the situation in the Middle East. Much of hatred of the US comes from a strong sense of humiliation felt by Arabs. The once proud Middle East has fallen extremely far behind the rest of the world. Radicalization of Arabs often occurred in Europe and not in Arab nations, where many extremists felt ostracized by European society. These factors have led many Muslim men to lash out and terrorize other nations.
Another factor includes America'ssupportfor "the bullies" in the Middle Eastfor many years. One good example has been Israel, who has been backed heavily by the US. Israel has been involved in much of the tension and conflict occurring with other Arab countries. This US and Israel alliance has angered many Muslims. The Muslim media is also making matters worse by distorting the truth and misinforming the Muslim people on what is really happening in the world.
In addition, the actions of George Bush has stifled foreign relations between the US and other countries. The video 'Does Europe Hate Us?' discusses the disapproval of George Bush's actions after the events of 9/11. He decided to go to war, where Muslims felt he was attacking Islam. Using religion into his speeches was disturbing for many. George Bush's actions coupled with many double-standard policies enforced by the US over the years has fueled even more hatred.
Sources: Notes, Videos (Searching for the Roots of 9/11) & (Does Europe Hate Us?)
The "Dell Theory of Conflict Prevention" and Smith's view of capitalism are two ideas that can address some of the problems in the Middle East. The main idea behind the Dell Theory is the interdependence of supply chains. The Dell Theory says that a trade partner will be unlikely to attack its own trade partners, because disrupting the supply chain has way too many negative consequences. Not only does war upset their own supply chains, but the supply chains of other countries as well. In turn, economic progression and advancement is stalled. If countries can strengthen trade and collaboration with Middle Eastern countries, they will likely refrain from attacking others. Also, strengthening trade with Middle East will allow those nations to advance. The Dell Theory can be illustrated by the relationships between Indian and Pakistan, and China and Taiwan. These countries have had a long-standing conflict with the other, but have prevented war through trade.
Muslim countries can also incorporate many ideas of capitalism to improve their own societies and economies. Their governments must elevate regulation and open themselves up to a free market. Allow the market to facilitate competitive and support specialization. Within a competitive free market, capital is gained over time and wealth is created. This leads to an advancement of society and innovation that benefits everyone. Impoverished people can ease their way out of poverty, which can help restore national and personal pride for all Muslims.
Sources: Notes, The World Is Flat, Saving Adam Smith, Videos (Searching for the Roots of 9/11) & (Does Europe Hate Us?), http://en.wikipedia.org/wiki/Dell_Theory_of_Conflict_Prevention,