A Ponzi scheme-a fraudulent investing scam

Question 1

Asymmetric information is a situation that occurs when one party to an economic transaction possesses more excellent material knowledge than the other party. Others would argue that information failure is the specialization and division of knowledge as applied to economic trade (Ebrahim, 2018, pp1185). For example, a seller may have more excellent knowledge about the product he sells than the buyer who would buy based on the prescriptions given by the seller.

A Ponzi scheme is a fraudulent investing scam that promises to pay the existing investors with the funds generated from new investors entering the firm. The scheme organizers often promise investors to invest their money with high expectations of returns with little or no risks.

In a Ponzi scheme, investors are not aware that they are to gain returns based on the money generated from the new investors while the organizers have that knowledge. They are not aware that if the scheme does not get more investors, their money will sink. Similarly, in asymmetric information, the seller has more information than the buyer. For example, a buyer may buy a second-hand vehicle, and while riding home, the car’s engine breaks. The seller fraudulently influenced the buyer to buy the car knowing that it had a mechanical problem.

Question 2

The ethical theory relativism states that ethics is linked to the norms of one culture. Ethical relativism could mean that whether the action is wrong or right only depends on the ethical standards of the society where it is practiced.

The pitfalls that ethical relativism can create for business practices include.

Job discrimination. Job discrimination arises due to different cultural beliefs (Buckley, 2013, pp671). For example, some cultures hold it that some jobs are for men and not women. The business initiated in the above kind of society will have difficulty in recruiting women even if there is a strong need for women in the workforce because it is seen as unethical.

Deceptive advertising. False advertising is an unethical issue that several cultural norms condemn. Incorrect information on the price of a product, quantity, and quality of a product, information regarding warranties, and other false information directed to manipulate the consumers are punishable by law.

Employee rights. Some countries have it that it is the responsibility of the employers to ensure that employee rights are held and not interfered with. Any act that would be suspected to be violating the employee’s rights is unethical, and the severe actions would be taken.

Question 3

Moral responsibility refers to a situation that requires an individual or a group of people to take the blame or be held morally responsible for their actions.

It has been argued that, to some extent, it’s the corporates that should be held morally responsible and not the individuals associated with it. Firstly, where an employee of a particular company, authorized to act on behalf of the company, get involves in a malicious act in the best interest of the company, that person should not be held responsible but instead the company.

Secondly, after incorporation, the corporate becomes a legal entity that is separate from its owners. Being a separate entity means that even its debts and liabilities are also separate from the owners (Shaw et al., 2017, pp168­). Therefore, for example, if the company fails to pay its creditors or involves in a fraudulent act, it is held responsible and not the individuals associated with it or its owners.

Reasons why corporations should not be held morally responsible are as follows. Where an individual authorized to act as an agent of the company knowingly and willingly involves in a fraudulent action that benefits his interest, the company should not be held responsible for this act, but rather the individual should take the blame.

Secondly, the corporates have no capacity for emotions and, therefore, do not have any quilt. Professors argue that once a corporate is held morally responsible, innocent individuals who never participated in the wrongful act would be affected as their salaries would be cut off while others who got involved in the act fraudulent would joy ride.

Question 4

Normative utilitarianism refers to an ethical theory that places the bearing of right and wrong only on the results of picking an action or a policy over the other (Moore, 1999, pp332). It does not focus on an individual’s interest but moves towards the interests of others.

Whistleblowing refers to a term used by employees when passing on information that concerns wrongdoing. It also refers to disclosing wrongdoing by a worker based on something witnessed at work. An example is where an employee reports to the manager about an unethical act observed at the workplace.

The concept of stakeholders’ theory holds that a corporation is an entity the brings or allows people to come together to create economic value. The corporation stakeholders include its employees, suppliers, customers, and investors, among others, that have a more significant impact on its existence. Therefore, to attain success, the stakeholder’s theory emphasizes that a corporation manager must pinpoint what factors and cultural morals, bring all of the company’s stakeholders together.

For example, when a consumer realizes that certain products of a given company are sold in the market at a higher price and reports the matter to the top manager. The two stakeholders involved in this situation are the consumer and the manager of the company. The interest of the consumer is to ensure that the consumers are not exploited in the market. The interest of the manger is to ensure that the company-consumer relationship is not broken.

Based on the principle of utilitarianism, the above example of whistleblowing is morally right. The action taken by the consumer does not only favor an individual’s interest, but the interest of many consumers at large.

Question 5

Environmental damage is the deterioration of the environment through depletion of resources such as water, soil, and air. It is also referred to as a change in the environment that is undesired. For example, industrial emissions of poisonous gages that pollutes the atmosphere resulting in environmental damage.

Environmental policies help in managing or preventing negative externalities and market failures. Environmental policy tools are required by the government or any other organization that tends to implement these policies (Shaw and Barry, 2015). Some of the instruments that the government may use to enforce these policies include economic incentives and market-based instruments such as tradable permits, taxes, and tax exemptions and fees that encourage compliance with the policy. For example, the government posing an increasing tax rate to the companies that emit poisonous gases and toxic wastes to the environment so that they can help in the prevention of environmental pollution. These policies help in the prevention of environmental damage.

The environmental regulations advantage is that it saves an economy a lot of money by preventing adverse health effects that would result from pollution. For example, polluted air and water cause several illnesses such as cancers, poisonings, respiratory diseases, and heart attacks. These diseases would require a lot of money to treat yearly.

The environment regulation is too expensive, and it affects international competitiveness, reduces economic growth, and widespread layoffs and plant closures. For example, due to harsh environmental laws in other nations, some investors may be forced to move to other accommodative countries.

Question 6

Globalization refers to the free movement of goods and services, technology, jobs, and people across the national borders and cultures. Some of the moral issues that arise from the process of globalization include;

Cultural diversity

Cultural diversity is a moral issue that has been created through the process of globalization. A global market involves different buyers and sellers from different nations and with different cultural beliefs. The principle of international law states that companies should respect the customs and culture of the communities they operate (Shaw et al., 2017, pp188). Success in global production and product promotion leads to the loss of some traditional values. Therefore, a dilemma of how and when these values could be respected and when not is created. Moreover, changes in consumers taste and preferences due to different cultural beliefs leads to decline in particular product demand.

Labor standards

It has been found that the emergence of globalization has made some companies in developed countries, move to production facilities, and contract in the developing countries to cut labor costs. The offering of law wages to employees in developing countries has raised a serious issue of whether it is morally right or not. While others believe that the low wages offered should be encouraged to enhance the development process in these countries, others argue that equality and proportionality should be considered.

Coronavirus pandemic has led to more barriers and recriminations between countries. Countries have abandoned free movement of goods and services and people and have erected nation barriers to protect their netizens, thereby causing a challenge to globalization.

Get professional assignment help cheaply

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Our essay writers are graduates with diplomas, bachelor, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.

Why choose our academic writing service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Get Professional Assignment Help Cheaply

fast coursework help

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Our essay writers are graduates with diplomas, bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

How It Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essayPLACE THIS ORDER OR A SIMILAR ORDER WITH ESSAY OVEN TODAY AND GET AN AMAZING DISCOUNT

order custom essay paper

Leave a comment

Your email address will not be published. Required fields are marked *