EECS 1520 Lecture Notes - Lecture 6: Rollerblade
21 Jun 2018
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EECS 1520 Lecture 6 Notes
Introduction
Roller blades
In the United States, a firm will sometimes take a client on an expensive golf outing or
provide skybox tickets to events.
This is no different than a payoff.
If the payoffs are bigger in some foreign countries, the MNC can compete only by
matching the payoffs provided by its competitors.
Counter-Point No.
A U.S.-based MNC should maintain a standard code of ethics that applies to any country,
even if it is at a disadvantage in a foreign country that allows activities that might be
viewed as unethical.
In this way, the MNC establishes more credibility worldwide.
Who Is Correct?
Use the Internet to learn more about this issue.
Which argument do you support?
Offer your own opinion on this issue.
Decision to Expand Internationally Blades, Inc., is a U.S.-based company that has been
incorporated in the United States for 3 years.
Blades are a relatively small company, with total assets of only $200 million.
The company produces a single type of product, roller blades.
Due to the booming roller blade market in the United States at the time of the
company’s establishment, Blades has been quite successful.
For example, in its first year of operation, it reported a net income of $3.5 million.
Recently, however, the demand for Blades’ Speedos, the company’s primary product
in the United States, has been slowly tapering off, and Blades has not been performing
well.
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Document Summary
In the united states, a firm will sometimes take a client on an expensive golf outing or provide skybox tickets to events. This is no different than a payoff. If the payoffs are bigger in some foreign countries, the mnc can compete only by matching the payoffs provided by its competitors. Decision to expand internationally blades, inc. , is a u. s. -based company that has been incorporated in the united states for 3 years. Recently, however, the demand for blades" (cid:862)speedos,(cid:863) the company"s primary product in the united states, has been slowly tapering off, and blades has not been performing well. Last year, it reported a return on assets of only 7 percent. In response to the company"s annual report for its most recent year of operations, Blades" shareholders have been pressuring the company to improve its performance. Its stock price has fallen from a high of per share 3 years ago to last year.
