Describe the methods used to calculate value added. How does value Essay - 1

Describe the methods used to calculate value added. How does value added contribute towards understanding the connections betwee - Essay Example Therefore, outputs that are not determined by one  self are not put into consideration (Sheikh, & Tonak, 2002). Marxist and neoclassical methods of determining value added B. Cox in 1979 agreed in his book called â€Å"value added† that Pigou’s definition went further in explanations. He construed value added in two diverse perspectives: the additive and the subtractive. In one, instance, the subtractive value added, is determined by taking away material purchases and services from revenue from sales. The value added signifies its creation. In addition, additive value added is deliberated by accumulation of labour cost (consisting of social charges), operating profit and depreciation. This permits the estimation methods where the created profit is distributed. Goods and services are (Samuelson, & Nordhaus, 2004) exchanged in business system; thus  a  market product entails a market where products are traded  (especially to firms). Thus, product market and busine ss are interrelated given that the business permits products to be traded in markets. Besides, vertical integration and value added are correlated. Indeed, if a company opts to vertical integration, its Value added ratio increases. However, many companies do not create their own products in entirety. An addition or change made by a business regarding a product or process prior to reaching the point of purchase or customer. In a situation where there is change in business value-added, there will be an increase in the quality and value of the process or products. However, the fact of the change in itself is not obvious to the customer (Palmer, 1998). The concept of Karl Marx where the value product is the same as the national accounting concept of determining net value added. It is obtained through subtracting the value of the gross product and expenditure on constant capital. The latter represents depreciation and the costs of intermediate products. In rotation, value added equals th e summation of variable capital (compensation of labor) and surplus-value (which is pre-tax profit income). The case is that labor generates value added (a new value) that comprises the cost of own wages i.e. payment for the ability of workers perform labor (labor power) and property income (surplus-value). In Marx's case, provided in Das Kapital thesis, workers apply sufficient labor-time within a working day so as to pay for proliferation costs where their ability to work in that day (labor-power) is judged by the extra work or surplus-labor required to compensate incomes to land-owners and capitalists among others (Deardorff, 2003). Given that labor is active and highly conscious factor in the process of production, capital goods which is the means of production together with gifts from nature like land and natural resources, facilitates the ability of labor to transform raw materials into finished products. It raises the physical productivity of labor regarding its ability to ge nerate use-values alongside value-productivity. The latter is the ability to generate use-values that can be traded for money (Yanovsky, 1999). On the contrary, neoclassical economics deem the incomes comprising added value as the prize for services provided. While critiquing the political economy, Marx observed incomes as consequences of production subject to circumstances of capitalist exploitation. In the capitalist class, they

Yum brand expatriate management in Beijing, China Essay

Yum brand expatriate management in Beijing, China - Essay Example mpanies has indicated a significant increase among multi-national businesses ranging from manufacturing companies to food and hotel industries (rphrm.curtin.edu.au). The use of expatriates as a means of ensuring that businesses succeed in international markets has been associated with various benefits. Yum brand is an American Fast Food Company, with over 40,000 restaurants distributed in various parts of the World. Yum brand has implemented various operational strategies geared towards facilitating its success in the current highly competitive fast food industry. One of the operational strategies that has been applied by the company to facilitate its success in foreign markets i.e. China is the application of expatriates, who are sent to manage its branches in foreign markets. This discussion will focus on ways that may be used by the company to increase expatriate effectiveness i.e. how the company may select, prepare and train its employees for an expatriate assignment. Additionally, the discussion will focus on describing how the company may ensure appropriate repatriation of its employees i.e. safe return of the expatriates to the company in the United States. The discussion will also highlight and explicate characteristics of the Host Country, which is China, placing a particular emphasis on why Yum Brands sent its expatriates to the Chinese Market. The effective performance of an expatriate in any foreign country begins by the selection process. In the case of Yum Brand, the selection of a employees to undertake expatriate missions in China should be based on selection characteristics that consider; technical competencies of employees, family situation i.e. considering whether one is married or not, personality traits i.e. inter-personal skills or an employee’s interest in performing expatriate missions and environmental variables i.e. cultural dimensions of the host nation as well as the needs of a qualified expatriate (rphrm.curtin.edu.au). After