Tuesday, July 23, 2019
An Organizational Culture. How Does It Affect The Decision And Essay
An Organizational Culture. How Does It Affect The Decision And Outcomes Of The Organization Can Organizational Culture Be Changed - Essay Example There is also no single definition of culture and it only involves assumptions, adaptations, perceptions, and learning that use symbols, language, ideologies, rituals, and myths in creating its beliefs, values and expectations. In a business setting, organizational culture is the shared philosophies, ideologies, values, assumptions, beliefs, expectations, attitude, and norms that knit the organization together. All of these interrelated psychological qualities reveal a group agreement, implicit or explicit, on how to approach decisions and problems or how things are done in a specific organization. It manifests in behavioral norms, hidden assumptions, and human nature, each occurring at a different level of depth within the organization. Studies have showed that organizational cultures are influenced by national cultures. Organizational culture differs not only from one business or industry to another but also from one country to another. In fact, industry and business culture are im mensely influenced by national cultures. The dimensions of cultures between countries were categorized by Hofstede. Hoftstede formulated a cultural assessment tool whereby dimensions of oneââ¬â¢s cultural strength can be assessed by assigning a scale ranging from 0 to 100 in the five cultural dimensions. This tool of Hofstede is a popular tool among managers who would like to understand another culture apart from their own. The five cultural dimensions of Power Distance, Individualism, Masculinity, Uncertainty Avoidance, and Long-Term Orientation; Hofstedeââ¬â¢s five dimensions of culture in details are; Small vs. large power distance ââ¬â This refers to how a society handles inequalities and the extent to which the less powerful members of organizations and institutions (like family) accept and expect that power is distributed unequally. Individualism vs. collectivismà ââ¬â Behavior towards community. The degree to which individuals are integrated into groups or are expected to look after themselves and self-actualize. Masculinity vs. femininity)à ââ¬â Behavior and roles distributed according to gender. (This dimension is often renamed by users of Hofstedeââ¬â¢s work to Quantity of Life vs. Quality of Life because one of the notable findings in the IBM studies revealed that in ââ¬Ëmasculineââ¬â¢ cultures, people (whether male or female) value competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions whereas in ââ¬Ëfeminineââ¬â¢ cultures, people (again whether male or female) value relationships and quality of life. Weak vs. strong uncertainty avoidance ââ¬â This refers to the level of need for structure. Cultures with low uncertainty avoidance tend to accept risk and change and prefer implicit or flexible rules and guidelines. Long vs. short term orientation ââ¬â How much society values long-standing, as opposed to short term, traditions and values. Cultures with high long-te rm orientation place strong importance on family, discipline and social obligations These varying organizational cultures affect the decision and outcomes of the organization in manner that it dictates or sets the phase on how things should be done in an organization and how should manager approach the workforce considering the prevailing culture. A positive culture is often cultivated by management to be able to increase the productivity of the organization while keeping the people happy which reinforces further the positive and cohesive organizational culture. A positive organizational culture benefits the business enterprise because of its higher productivity outcome. When organizational culture is positive, people are motivated and get things done faster not to mention that
Ethical Worksheet Essay Example for Free
Ethical Worksheet Essay 1. What is the ethical issue or problem? Identify the issue succinctly. The probation officer has to generate a presentence investigation report for the husbandââ¬â¢s trial. The probation officer has to keep in consideration that this last DUI would be the husbandââ¬â¢s third conviction, the only one being after his military service. The standard sentence for a third time offense usually begins at a minimum of 90 days in custody. The husband, however, has a record diagnosing him with post-traumatic stress disorder (developed after serving in Somalia) where confinement can trigger regression, explosive outbursts, and traumatic flashbacks. What should the probation officer recommend? 2. What are the most important facts? Which facts have the most bearing on the ethical decision presented? Include any important potential economic, social, or political pressures, and exclude inconsequential facts. This is the husbandââ¬â¢s third DUI offense. Due to the husbandââ¬â¢s military service in Somalia, and his imprisonment by the enemy soldier, he now suffers from post-traumatic stress disorder and has regressed to the level of a 10-year-old. As per his psychiatrists, any type of confinement could worsen his regression, triggering explosive outbursts and traumatic flashbacks. The standard sentencing (since heââ¬â¢s a third time offender) usually begins at a minimum of 90 days in custody. His prior convictions happened before his military service and he served a total of 60 days in custody, without incidents. 3. Identify each claimant (key actor) who has an interest in the outcome of this ethical issue. From the perspective of the moral agentââ¬âthe individual contemplating an ethical course of actionââ¬âwhat obligation is owed to the claimant? Why? Claimant (key actor) Obligation (owed to the claimant) Perspective (What does the claimant hope will happen?) Probation Officer Beneficence, protection, service The probation officer would strongly recommend for the husband be placed under house arrest and attend intensive therapy and rehabilitation, rather than being incarcerated or institutionalized. Husband Respect, order The husband would prefer to pay a fine, if any, and be penalized in any way other than confinement. Judge Beneficence, non-injury The judge would prefer to help the mental condition of the husband, as well as keep the order in any jails and/or correctional facilities. Psychiatrist Beneficence, farewell The psychiatrists would prefer to attend to the husbandââ¬â¢s mental condition through intense therapy and rehabilitation, and avoid confinement at all cost. Society Justice, peace and order Society would prefer any type of rehabilitative therapy for the husband, a military veteran, and not incarceration. Evaluating Alternatives 4. What are two alternatives for the scenario? One alternative can be a wild card that you ordinarily may not consider an option because of potential implications. Both should be within free will and control of the same moral agent. Alternative A Alternative B The probation officer strongly recommends rehabilitative therapy and psychotherapy in place of any incarceration time. The probation officer generates the PSI report following protocol of recommending the standard mandatory minimum of 90 days in jail for being the husbandââ¬â¢s third conviction. 5. Respond to the following questions based on your developed alternatives. Alternative A Alternative B What are the best- and worst-case scenarios if you choose this alternative? Best: The husband shows improvement through different types of therapy and overcomes alcoholism. Worst: Therapy is useless for the husband and his alcohol dependency worsens. Best: Standard procedures are followed. Husband has no outburst or violent flashbacks. Worst: Husband has a violent outburst hrs within incarceration, has to be placed in solitary confinement, mental state deteriorates. Will anyone be harmed if this alternative is chosen? If so, how will they be harmed? Consider families and derivative effects. The husband will be hurt if the therapies recommended do not work as expected. His mental condition and alcohol dependency may worsen if the issue is not approached properly. The husbandââ¬â¢s mental, emotional, and maybe even physical state will worsen will incarceration, since his violent outburst and flashbacks will be reoccurring. Would honoring an idea or valueââ¬âsuch as personal, professional, or religiousââ¬âmake the alternative invalid? Prioritizing the mental health and wellbeing of a military veteran with service related issues, such as PTSD makes the alternative invalid. Following the standard sentencing for a third time offender would make the alternative invalid. Are there any rules, laws, or principles that support the alternative? Are there rules, laws, or principles that make the alternative invalid? State the rule or principle and indicate if it invalidates or supports the alternative. 3455. Idiocy as a Defense You may not find the defendant guilty of if (he/she) was legally incapable of committing a crime because of idiocy. The defendant was legally incapable of committing a crime because of idiocy if at the time the crime was committed: 1. (he/she) had a mental disease or defect; 2. Because of that disease or defect, (he/she) did not know or understand the nature and quality of (his/her) act or did not know or understand that (his/her) act was morally or legally wrong. V C Section 23546 Penalty Third Conviction Within Ten Years 23546. (a) If a person is convicted of a violation of Section 23152 and the offense occurredà within 10 years of two separate violations of Section 23103, as specified in Section 23103.5, 23152, or 23153, or any combination thereof, that resulted in convictions, that person shall be punished by imprisonment in the county jail for not less than 120 days nor more than one year and by a fine of not less than three hundred ninety dollars ($390) nor more than one thousand dollars ($1,000). The persons privilege to operate a motor vehicle shall be revoked by the Department of Motor Vehicles as required in paragraph (5) of subdivision (a) of Section 13352. The court shall require the person to surrender his or her drivers license to the court in accordance with Section 13550 Applying Ethical Guidelines 6. Consider each ethical guideline and explain whether it would support or reject your alternative. Guidelines based on the action itself Alternative A Alternative B Should this alternative become a rule or policy that everyone in this situation should follow in similar situations in the future? (Kant) Yes No Does this alternative result in using any person as a means to an end without consideration for his or her basic integrity? (Kant) No Yes Is the intent of this action free from vested interest or ulterior motive? (Kantââ¬â¢s good will) Yes Yes Does this alternative demonstrate a genuine concern for others affected by the decision, and is the moral agency responding to a perceived need? Yes: concern for others and responding to a perceived need are implicated No Guidelines based on consequences Alternative A Alternative B Is the good that results from this alternative outweighed by the potential harm that might be done to others? (Millââ¬â¢s harm principle) Possibly No Is any harm brought about by anyone other than the moral agent? (causal harm) No Yes, the husband and the implicated correctional facility Will anyone be harmed who can be said to be defenseless? (paternalism) No Yes, the husband in a regressed mental state of a 10 year old To what degree is this alternative based on the moral agentââ¬â¢s own best interest? (ethical egoism) Not based on the parole officerââ¬â¢s own interest. It is based on the best interest of the husband. Not based on the parole officerââ¬â¢s own interest. It is based on the best interest of the husband. Which alternative will generate the greatest benefitââ¬âor the least amount of harmââ¬âfor the greatest number of people? Select only one alternative. (utilitarianism) Alterative A will generate the greatest benefit. Ethical Decision Making 7. Choose to proceed with either Alternative A or Alternative B and explain the reasons for your decision. I recommend that on the parole officerââ¬â¢s presentencing investigation report strongly recommend an alternative type of punitive action against the husband, in lieu of incarceration. He should take in consideration not only the welfare and mental health of the husband, but the order in the corresponding correctional facility. The parole officer should note that incarceration will not only greatly deteriorate the husbandââ¬â¢s mental, emotional, and even physical health, but it will also create altercations and physical confrontations in jail. The parole officer should push for some type of intensive rehabilitative therapy, as well as psychotherapy, and any other type of therapy the husband may need in order to treat his mental condition as well as to address his alcohol dependency. If necessary, applying a fine and/or house arrest in order to pay for the offense. The par ole officer should put the health and well being of the husband first.
Monday, July 22, 2019
Chinese Culture Essay Example for Free
Chinese Culture Essay Chinese Culture changed during the Qin Dynasty. There was an increase in trade, agriculture, and military protection. The central government now had direct control of the population, allowing the ability to have a much bigger workforce. Many projects such as the Great Wall of China were done because of this. The Qin Dynasty had several reforms in Chinaââ¬â¢s society; such as money, advanced writing system, and the weights and measurements became the same units. Book burning and burying of scholars occurred due to the desire to purge all traces of the old dynasties. The Qinââ¬â¢s military was revolutionary due to the fact of more developed weaponry, transportation, and military tactics. All this was done even though Chinaââ¬â¢s government was strict and bureaucratic. Future Chinese regimes were influenced because of this Dynasty. Qin Shihuang was the emperor that was buried in the tomb. He was the first emperor of China. After 200 years of war between 6 states, he unified China. His rule only lasted for 15 years, but left a lasting impact on the countryââ¬â¢s history. A few of Qinââ¬â¢s remnants were the legalist principles, a Chinese philosophy that followed hard discipline agreeing to the rule of law. This belief helped Qin to rule the masses in a more centered power order and show a very influential way to rule, but this did now allow for disagreement to occur. Qin introduced a uniform written language which helped the government to communicate and carry out policies. Scholars could share information to a bigger population which helped lead to the transfer of culture. Having one language helped the later dynasties to communicate with the nomads and pass along information on how to compromise or fight with them. The invention of constructing roads allowed better connection between major cities and provinces. The dynasty standardized the length of axles in carts so they could all ride on new roads. The construction of the Great Wall of China made a mark in history for the countryââ¬â¢s boundaries, causing a greater unity. The nomadic tribes in the north were not able to attack because of the Great Wall protecting its Country. They dynasty standardizes all weights and measures, leading to a more effortless exchange of goods, and developing a taxation system. The Chinese money is also made equal all over, allowing even more efficiency of exchange in goods. Qin Shihuang had a lasting impact in the power of leadership in China. After his death in 206 BCE, his son, and later his grandson, took power but bother were short lived. The Qin Dynasty ended in 206 BCE. After his death, the same states that were in war before he became the emperor, began to fight again and many leaders sprang up over China until the Han Dynasty. Even though this happened, the lasting effects of practices that were put in place in the Qin Dynasty, lasted throughout the centuries. Qinââ¬â¢s power came from his top-down rule, and people conformed to his rule because of his powerful personality. They followed him because he showed them a vast difference in comparison to their small kingdoms, giving a way to a beginning of a future nation-state. The fact that China is names after Qin just goes to show how big of an influence he really was. For more than 2 thousand years Taoism has been the religious tradition that has influenced the people of East Asia. The work, Tao means the ââ¬Å"pathâ⬠or ââ¬Å"wayâ⬠, but with numerous subtle differences in folk religion and Chinese philosophy. There are three Jewels of Tao that are underlined: compassion, moderation, and humility. Taoism teaches mostly on nature, the relationship between humanity and the cosmos. The reason for all of Taoistââ¬â¢s rules and practices is to have Harmony with the Universe. Another thing that is popular in Taoism is godly fear for ancestor spirits and immortals. There is folk religion Taoism, and then there is organized Taoism, the difference is their rituals. Chinese alchemy, astrology, cuisine, Zen Buddhism, many Chinese martial arts, traditional Chinese medicine, and feng shun, and many style of qigong have been weaved with Taoism throughout history. Another philosophy developed in China is Confucianism. It came from the teachings of Confucius; Master Kong, 551-478 B.C. It is a complex system of moral, political, philosophical, social, and part religious thought that influences the culture and history of East Asia. Some East Asian countries consider it to be a state religion because of the adopted philosophies of Confucius. China, Taiwan, Korea, Japan, and Vietnam all are influenced by Confucianism as well as Singapore. The very first emperor of the Qin Dynasty, Qin Shi Huang was the patron. Not long after he became emperor, he ordered to have his mausoleum be built. It was ordered to be build at the foot of Li Mountain in Xian. Part of his grave goods was the Terra Cotta warriors. It is believed that it took 700,00 men and 40 years to build the mausoleum. Qin wanted not only to be the greatest king alive, but in his death and for eternity. This is why he would not allow a chance for there to be a rebellion between the 6 states that were in war with each other. The terra cotta army was built there to suppress them, and execute his dream of everlasting. This is why he built the army in his tomb.
Sunday, July 21, 2019
Differences Between Strict And Absolute Criminal Liability Law Essay
Differences Between Strict And Absolute Criminal Liability Law Essay In general, the criminal liability requires the proof of both actus reus and mens rea before convicting a person. When the necessity for the prosecution to prove mens rea (in the sense of intention, knowledge or recklessness, or even negligence) regarding the actus reus elements of the offence is disregarded, either expressly or impliedly, the offence in question is described as strict or absolute liability offence. What is the distinction (if any) between absolute and strict liability offences? Give examples of each. First, it determines what the prosecution must prove. Strict liability offences do not require proof of mens rea in respect of at least one element of the actus reus, usually the essential one. However, proof of mens rea may be required for some of the elements of the actus reus. Absolute liability offences do not require proof of any mens rea element, but are satisfied by proof of the actus reus only. Second, the distinction can be seen by examining the issue of causation In strict liability, the prosecution is required to prove the causation of the actus reus and the offence. In Empress Car Co (Abertillery) Ltd v National Rivers Authority [1998] HL, the lordship said that, While liability [for water pollution] is strict and therefore includes liability for certain deliberate acts of third parties à ¢Ã¢â ¬Ã ¦ it is not an absolute liability in the sense that all that has to be shown is that the polluting matter escaped from the defendants land, irrespective of how this happened. It must still be possible to say that the defendant caused the pollution. In absolute liability, however, a crime may not require any causation link at all, if the specified state of affairs exists. In Winzar v Chief Constable of Kent (1983), the defendant was removed from a hospital by police and was then arrested and found guilty of being drunk on the highway, even though the police officers had put him there. The court held that it was enough to show that D had been present on the highway and was perceived to be drunk. It didnt matter that his presence on the highway was momentary and involuntary. Third, it determines what defences are available to the defendant Many academic papers differentiate strict and absolute liability offences by the availability of the defence of mistaken yet honest belief, a common law defence. Where they are available liability is strict, where it is not available liability is absolute. The situation is made complex in case where defence are provided in the statue for the defendant to escape liability. If common law defence is held by court to be excluded from the offence, does the provision of statutory defence disqualify the offence to be an absolute one? Or that it is the nature of the offence that automatically categorized the offence as absolute liability? In the case HKSAR and SO WAI LUN, the court of appeal has the opportunity to look into the case B (A Minor) v DPP, and made the following observation. Section 5 of the Sexual Offences Act 1956 made it an offence for a person to have unlawful sexual intercourse with a girl under 13 while section 6 made it an offence in relation to girls under 16. Under section 6, a defence was expressly set out where the defendant, provided he was under the age of 24, believed the girl to be 16 or over As to the effect of these two offences, Lord Steyn said at 469A B that since section 5 contained no such defence, it plainly created an offence of absolute liability. So the court is suggesting that unlawful underage sexual intercourse, a traditional well-known example of absolute liability, will not be considered as absolute liability per se in the present of statutory defence in the provision. This observation is reaffirmed in the recent case Hin Lin Yee v HKSAR by Judge Chan PJ in para. 198 (ii) and (iii). In other jurisdiction like Australia, the distinction of strict and absolute liability is even blurred by the fact that common law defence like duress and self defence can be available for absolute liability. How does one determine if an offence is one of strict or absolute liability? The question of whether a statutory offence requires proof of mens rea or is strict liability is treated as a matter of statutory construction, the statutory provision enacting the offence must be construed to determine the legislative intention. In Gammon (Hong Kong) LTD v A-G of Hong Kong [1985] PC, the lordship has summarized the approach to the interpretation: There is a presumption of law that mens rea is required before a person can be held guilty of a criminal offence. The presumption is particularly strong where the offences is truly criminal in character. Truly criminal offence usually refers those dealing with violence against persons or property. The presumption is particularly strong because of the stigma attached to the offence. The presumption applies to statutory offences, and can be displaced only if this is clearly or by necessary implication the effect of the statute. Sometimes the offence will expressly specify the type or level of mental fault by using words such as willfully, recklessly, carelessly, etc. In such cases, the court must then go on to define the precise meaning of those mens rea words. Where a statute is silent as to the mens rea for an offence, the courts must decide as a matter of general principle or statutory interpretation what level or type of mens rea applies. The only situation in which the presumption can be displaced is where the statute is concerned with an issue of social concern, and public safety is such as issue. Strict liability has often been imposed in regulatory offences concerning social concern and public safety, such as licensing, pollution, health and safety, driving offences, environmental offences, public health offences. Even where a statute is concerned with such an issue, the presumption of mens rea stands unless it can also be shown that the creation of strict liability will be effective to promote the objects of the statute by encouraging greater vigilance to prevent the commission of the prohibited act. In Lim Chin Aik v R, the defendant had been convicted under the immigration laws of Singapore by remaining there (after entry) when he had been prohibited of entering. The aim of the law was to prevent illegal immigration. The defendant had no knowledge of the prohibition order and there was no evidence that the authorities had attempted to bring the prohibition order to his notice. Since there was nothing D could have done to determine whether a order had been made against him and thus ensure compliance with the relevant legislation, the Privy Council ordered that the offence was not one of strict liability because it did nothing to promote enforcement of the law. What policies are behind the creation of absolute and strict liability? It is said that the imposition of strict liability encourages greater observance of and compliance with law, and this is particularly important where matters of public safety, public health and public welfare are concerned. High standards can be achieved and maintained only if those conducting activities involving risks to safety, health, the environment and so on are made to feel that it is not enough just to take reasonable care; they must take all possible care. Secondly, it is said that strict liability, by relieving the prosecution of the task of investigating and proving mens rea against an alleged offender, enhances the efficiency of our administrative and judicial systems. In HIN LIN YEE ANOR v HKSAR, Ribeiro PJ pointed out a reason in particular why absolute liability should be created. Absolute liability can impose duty on a person (which may be a corporate body) where the conduct or task which is the subject of the duty is in practice likely to be carried out by someone else, such as an employee or a contractor. It makes it insufficient for the employer passively to assert an honest and reasonable belief. It promotes proactive management and diligent supervision on his part to see that the duty is in fact being properly discharged. How do the concepts of absolute and strict liability assist or hinder the Prosecution, the Accused and the Court in a criminal trial? The concept assists the prosecution in a criminal trial since it relieves the prosecutor of the virtual impossibility of proving intent or knowledge of the wrongful conduct, particularly where the defendant was a company rather than an individual. No significant hindrance is observed for prosecution in regard to the application of concept. The concept assists the accused in a criminal trial since strict liability draw a clear line between legality and illegality, which may reduce the information cost for the general public to determine whether he is guilty or not. Unnecessary legal fee may also be saved in this regard. On the other hand, the concept hinders the accused in a criminal trial since it impose liability on people who have taken all possible steps to prevent the offence being committed and should not be blameworthy. The onus of proof is also reversed to the defendant side. The concept assists the court in a criminal trial since it allows the court to strike down the many bogus defense that would otherwise succeed if excusable ignorance or mistake were always accepted as defense. On the other hand, the concept hinders the court in a criminal trial since the courts need to engage in time consuming debates about whether the legislature intended strict or absolute liability to apply. The difficulties in identifying strict liability offences can be seen from the inconsistent attitude and decisions. Also, the court need to justify the creation of strict liability does not per see contravene with the Bill of Rights. [SO WAI LUN v HKSAR [2006] HKCU 1195]
Saturday, July 20, 2019
Essay --
The Age of Revolution â⬠¢ A period of political upheaval beginning with the American Revolution, leading through the French Revolution, and ending at around 1848 â⬠¢ Caught up many social groups with diverse motives Forces of Change â⬠¢ Three forces were working to shatter Europeââ¬â¢s calm by the mid-18th century o Cultural ï⠧ Jean-Jacques Rousseau argued for a government based on a general will o Ongoing commercialization ï⠧ Businesspeople challenge the idea that only aristocrats should hold high office o All social levels ï⠧ The population revolution was partly the result of better border policing, which reduced the movement of disease bearing animals ï⠧ Improved nutrition, due to the introduction of the potato â⬠¢ Led to reduced death rates ï⠧ Increase in population leads upper class families to tighten their grip on existing offices â⬠¢ Consequently it becomes harder for non-aristocrats to gain a high post â⬠¢ Population pressure drove many people into the working class, which led to the creation of motives for protest â⬠¢ Population growth sparks a rapid expansion of domestic manufacturing in western...
The Five People You Meet In Heaven :: essays research papers
Eddie is a grizzled war veteran who feels trapped in a meaningless life of fixing rides at a seaside amusement park. As the park has changed over the years -- from the Loop-the-Loop to the Pipeline Plunge -- so, too, has Eddie changed, from optimistic youth to embittered old age. His days are a dull routine of work, loneliness, and regret. Then, on his 83rd birthday, Eddie dies in a tragic accident, trying to save a little girl from a falling cart. With his final breath, he feels two small hands in his -- and then nothing. He awakens in the afterlife, where he learns that heaven is not a lush Garden of Eden, but a place where five people who were in it explain your earthly life to you. These people may have been loved ones or distant strangers. Yet each of them changed your path forever. One by one, Eddie's five people illuminate the unseen connections of his earthly life. As the story builds to its stunning conclusion, Eddie desperately seeks redemption in the still-unknown last act of his life: Was it a heroic success or a devastating failure? The answer, which comes from the most unlikely of sources, is as inspirational as a glimpse of heaven itself. These five meetings -- some of which are with people who are strangers to Eddie, others with people he knows intimately -- take this gruff but gentle man through the different stages of his life, and through each new person, some hidden truth is revealed. As Albom unfolds Eddie's story, he gradually sheds light on the web of connections between each individual and a world of strangers, so that life is revealed not as a straightforward story of what we have achieved but as a vast network, too large for us to perceive clearly from the inside.
Friday, July 19, 2019
Gross National Product :: essays research papers
Gross National Product GNP Top 10 (2004) (currency exchange rate) à à à à à Countryà à à à à GNP ($ mill) 1à à à à à United States 10,945,792 2à à à à à Japan 4,389,791 3à à à à à Germany 2,084,631 4à à à à à United Kingdom 1,680,300 5à à à à à France 1,523,025 6à à à à à China 1,417,301 7à à à à à Italy 1,242,978 8à à à à à Canada 756,770 9à à à à à Spain 698,208 10à à à à à Mexico 637,159 Gross National Product (GNP) is the total value of final goods and services produced in a year by domestically owned factors of production. Final goods are goods that are ultimately consumed rather than used in the production of another good. For example, a car sold to a consumer is a final good; the components such as tires sold to the car manufacturer are not; they are intermediate goods used to make the final good. The same tires, if sold to a consumer, would be a final good. Only final goods are included when measuring national income. If intermediate goods were included too, this would lead to double counting; for example, the value of the tires would be counted once when they are sold to the car manufacturer, and again when the car is sold to the consumer. Only newly produced goods are counted. Transactions in existing goods, such as second-hand cars, are not included, as these do not involve the production of new goods. Income is counted as part of GNP according to who owns the factors of production rather than where the production takes place. For example, in the case of a German-owned car factory operating in the US, the profits from the factory would be counted as part of German GNP rather than US GNP because the capital used in production (the factory, machinery, etc.) is German owned. The wages of the American workers would be part of US GNP, while the wages of any German workers on the site would be part of German GNP. Gross Domestic Product GDP Top 10 (2004) (currency exchange rate) à à à à à Countryà à à à à GDP ($ mill) 1à à à à à United Statesà à à à à 10,435,284 2à à à à à Chinaà à à à à 5,409,852 3à à à à à Japanà à à à à 4,326,444 4à à à à à Germanyà à à à à 2,400,655 5à à à à à United Kingdomà à à à à 1,794,858 6à à à à à Franceà à à à à 1,747,973 7à à à à à Italyà à à à à 1,465,895 8à à à à à Canadaà à à à à 958,390 9à à à à à Spainà à à à à 836,100 10à à à à à Mexicoà à à à à 626,888 Gross Domestic Product (GDP) is the total value of final goods and services produced within a country's borders in a year. GDP counts income according to where it is earned rather than who owns the factors of production. In the above example, all of the income from the car factory would be counted as US GDP rather than German GDP. To convert from GNP to GDP you must subtract factor income receipts from foreigners that correspond to goods and services produced abroad using factor inputs supplied by domestic sources. To convert from GDP to GNP you must add factor input payments to foreigners that correspond to goods and services produced in the domestic country using the factor inputs supplied by foreigners.
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