gb13 - Two Paradigms for Global Business Today most of the...

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Two Paradigms for Global Business Today, most of the transactions in global trade are between private companies rather than countries. The goal for all companies is to create value for relevant stakeholders. However, relevant stakeholders differ for different countries around the world. --In the United States and United Kingdom, the owners of the company are the most important stakeholders. As a result, the goal of companies operating in these countries is usually to maximize the company’s stock price. --In many other countries, there are stakeholders who are even more important than the owners. These may be governments, workers, local citizens, or the environment. For companies operating in these countries, maximizing stock price may not be the company’s most important objective. In general, there are two competing philosophies about the relationship between companies and society: 1. The Shareholder Wealth Maximization Model (SWM): In the United States and United Kingdom,
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This note was uploaded on 02/06/2011 for the course GEB 3373 taught by Professor Crum during the Spring '10 term at University of Florida.

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gb13 - Two Paradigms for Global Business Today most of the...

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