Lobal Managerial Economics (Acme Motors)

For multinational corporations, friction costs arise where practices of the firm are seen by the public as exploitative or unethical. These actions lead to public criticism and loss in the value of the company s goodwill and may translate into measurable sales losses.

There is growing evidence that a corporations image can become a competitive advantage due to positive gains in consumer approval. In the U.S., there are a number of indications that so-called Green consumersrepresent an increasingly important niche in various sales markets, and companies that are environmentally exemplary and go beyond the minimum legal requirements can gain market advantages.

Empirical studies reveal a positive correlation between ethical conduct in a corporation and job satisfaction. The studies reported by the Novaris Foundation for Sustainable Development (subjects/business/ethics.cfm)

The group portion of your assignment is to hold a discussion as follows. As a group, consider the interests of the stakeholders in the Acme Motors scenario

*Acme Management and stockholders
*Maquilodora workers
*Consumers
*Mexican government

Divide your group into the various stakeholders and then comment from each stakeholder perspective on the interests at stake in the Acme Motors scenario. Brainstorm with each other via the Group Discussion Board on possible management strategies for addressing the situation given what you have learned in this course.

****I will be doing the Maquilodora workers****