Global Profits

Mark Baker,Associate Professor, University of Texas-Austin
Laura Hartman,Grainger Chair of Business Ethics, University of Wisconsin
Bill Shaw, Woodson Centennial Professor in Business Administration, University of Texas-Austin

© 1999
ISBN 0-324-03524-1

Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 6 pages in length and its teaching package is 5 pages.

Abstract

Experiencing steep inclines in its costs of labor, the Board of Directors of K-PAN Corporation has decided to seeks to expand its operations overseas (specifically, to Indonesia and Pakistan). The Directors recognize the ultimate costs savings and perhaps economic benefits of their decision to these developing countries, but are concerned about the quality of life implications for their foreign employees or those of its suppliers. Given both their personal concern as well as the possible media ramifications of their decision, the Board decides to investigate the matter more fully.

Recommended Usage:

Business Law: This case is appropriate for business law courses in order to introduce questions relating to international law and conflicts in cultures. Ethics: The case is particularly relevant to ethics courses in order to demonstrate the practical, real-life quandaries faced by executives in these decision-making positions.

Economics or Human Resource Management: Courses in comparative, developing, labor or global economics, as well as global human resource management, will benefit from this case's in-depth neoclassical economic analysis of the impact of labor decisions on developing economies.

Strategy: Courses in business strategy will benefit from the case's long-term perspective and a discussion of the implications of labor and vendor decisions.

Pre-reading and/or Supplemental Materials:

No prior reading is necessary to understand this case. Background for the topic is found within the case, itself.


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