Decision Making in Business Research Paper by Nicky

A look at how decisions are made in international business.
# 151333 | 9,137 words | 30 sources | APA | 2012 | US
Published on May 31, 2012 in Business (Finance, Investment and Banking) , Economics (Public Finance) , Ethics (General)


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Description:

This paper examines how decisions are made in international business, with an emphasis on ethics and morality. First, the paper discusses how the world economic climate is changing, particularly in light of globalization and the financial crisis. Then, the paper analyzes economic decisions made during the Bush administration by then Secretary of the Treasury Henry M. Paulson Jr. Next, the paper takes an in-depth look at the TARP Plan, which was intended to bail out financial institutions. The paper also addresses the political implications of the TARP Plan, and how the Geithner Plan was a response to it. The paper then details the Geithner Plan and its intended role to rescue banks and other financial institutions. The paper also includes the text of the New York Times article entitled, "Paulson's Calls to Goldman Tested Ethics" which dealt with ethical issues regarding Henry M. Paulson Jr.'s relationship to Goldman-Sacks. The paper concludes with an analysis of the dilemma presented in the article and business ethics in the modern world in general.

Outline:

Background of the Situation
The Tarp Plan
Capital Injections
The Second Round
The Geithner Plans
Public-Private Partnership
Expanded Government Power to Seize Firms
Tarp Repayment
Paulson and Ethics
Analysis of the Dilemma
Ethics in the Modern World
Questions of Ethics

From the Paper:

"The first proposal for a sweeping bailout of financial institutions came at the height of the panic in mid-September, 2008. Mr. Paulson, with the backing of Federal Reserve Chairman Ben Bernanke, asked Congress for $700 billion to use to buy up mortgage-backed securities whose value had dropped sharply or had become impossible to sell, in what he called the Troubled Asset Rescue Plan, or TARP. As originally outlined, the government would have bought up toxic mortgage-backed securities at a premium over their current deflated values. By paying "hold to maturity'' prices, Mr. Paulson said, the government would provide troubled firms with an infusion of capital, reducing doubts about their viability and thereby restoring investor confidence.
The plan in its original form was quickly rejected by both Democrats and Republicans in Congress and was criticized by many economists across the political spectrum. Congress insisted on adding provisions for oversight, limits on executive pay for participating companies and an ownership stake for the government in return for its investments.
Even so, the plan proved to be strikingly unpopular with an outraged public, and on Sept. 29 it failed in the House of Representatives, primarily from a lack of Republican support."

Sample of Sources Used:

  • "A Look Back at Paulson's Conflicted Interests." (May 2, 2009). BearishNews. Cited in: http://www.bearishnews.com/post/524
  • Carney, T. (October 8, 2009). "Goldman Sachs, Obama, Geithner, and 'Special Interests'." Washington Examiner. Cited in:http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Goldman-Sachs-Obama-Geithner-and-special-interests-63768387.html
  • Cho, D. and N. Irwin. (September 19, 2008). "In Crucible of Crisis, Paulson, Bernanke, Geithner Forge a Committee of Three." The Washington Post. Cited in:http://www.washingtonpost.com/wp-dyn/content/article/2008/09/18/AR2008091804211.html
  • Chorafas, D. (2009). Financial Boom and Gloom: The Credit and Banking Crisis of 2007-2009. Palgrave-McMillan.
  • Clarke, C. (April 7, 2009). "Does the Geithner Plan Violate the FDIC Charter?" The Atlantic. Cited in:http://business.theatlantic.com/2009/04/is_the_geithner_plan_illegal.php

Cite this Research Paper:

APA Format

Decision Making in Business (2012, May 31) Retrieved March 31, 2023, from https://www.academon.com/research-paper/decision-making-in-business-151333/

MLA Format

"Decision Making in Business" 31 May 2012. Web. 31 March. 2023. <https://www.academon.com/research-paper/decision-making-in-business-151333/>

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