PPG401H1 Lecture Notes - Lecture 1: Bob Rae, Cultural Hegemony, Electric Light

Read the following Ethical Issue 7-1 found at the end of chapter7 of the text and answer the questions.

Mel O'Connor owns rental properties in Michigan. Each propertyhas a manager who collects rent, arranges for repairs, and runsadvertisements in the local newspaper. The property managerstransfer cash to O'Conner monthly and prepare their own bankreconciliations. The manager in Lansing has been stealing from thecompany. To cover the theft, he understates the monthly bankreconciliation appears to balance. O'Conner is currently puttinghis entire business up for sale. In negotiating the sale of thebusiness, O'Conner is showing the balance sheet to prospectivebuyers.

1. Identify who, other than O'Conner, could be harmed by thistheft. In what ways could they be harmed?

2. Discuss the role accounting plays in this situation.

Rodrik suggests that globalization may have gone too far. In your opinion, should business and markets be totally free of government regulation and oversight, and how large a role should government play in managing the economy and seeking solutions to social problems?

Source: Rodrik, Dani (1997). Has Globalization Gone Too Far?

1) Is technology the critical driver of globalization?

2) What is the nature of this arguement conceived by: liberlism, mercantilism, and marxism?