International Business

International Business Operations Case Analysis
Amy Thorsen
Cesar Beltran Badilla
Tracy Simek
City University of Seattle
BSM 404
Carla Weaver
February 27, 2012





















Table of Contents
Abstract…………………………………………………………………………………………..3
Problem Definition………………………………………………………………………….........5
Justification for Problem Definition……………………………………………………………...6Alternative Courses of Action……………………………………………………………………8
Evaluation of Alternatives………………………………………………………………..………9
Review…………………………………………………………………………………………..11
Conclusion and Recommendations……………………………………………….……………....X
Evaluation and Follow-up………………………………………………………………………...X
References…………………………..……………………………………………………………X











Abstract
Here is the place where an abstract ofno greater than one hundred and twenty words will be, once the paper has been completed by the team.




















International Business Operations Case Analysis
Business transactions have evolved over the history of human evolution, from trade between individuals to trade between various groups to trade within and among nations and multinational corporations. Asbusiness has evolved, so has accounting. Accounting is the method used by businesses to keep track of its assets, liabilities and equity so that it may remain healthy and grow, but it is also the method used by investors to keep track of a company’s health (Hill, 2011). Without the financial reporting function of accounting, people with money to invest could never be sure of the health of thecompanies in which they had the option of investing, and would always be gambling with their income rather than making informed decisions.
Accounting has evolved not as one cohesive set of strategies and theories, but has been interpreted and applied differently in every culture which has used a form of it (and often in different forms within those cultures) (Hill, 2011). As investors havedemanded more transparency and accountability from the entities in which they invest, standardized accounting practices have developed nationally and regionally around the world to provide a framework which will allow investors to compare and contrast firms on an even footing. In the United States the accounting standard is the Generally Accepted Accounting Principles (GAAP) and an international setof accounting standards gaining acceptance in foreign markets has been developed by the International Accounting Standards Board (IASB). The focus of this case analysis is on the benefits and challenges of unilateral adoption of international standards in accounting; we begin with the problem definition.


Problem Definition
The world is in an era where the term “globalization” isbecoming somewhat trite as the state of business it describes has become the 21st Century norm. International trade and multinational corporate expansion have flourished as the 20th Century saw political and geographic boundaries become relatively stable, allowing for the relaxation of trade barriers and protectionist policies (Hill, 2011). As business has globalized, investors have run intodifficulty in assessing the fortunes of corporations and business entities around the world, for the purpose of making informed investment decisions.
Historically, when an investor has been interested in international companies they have had to contend with a myriad of accounting and reporting standards which rival the mythical Tower of Babel in variety and complexity. If one were investing inChina they might have to contend with multiple sets of books prepared for a variety of purposes, in Switzerland the investor may find that a company’s accounts look like a statistical analysis of its sales and growth history but provide little detail on its balance sheet and in the United States they might find a strict rulebook which may undervalue assets but provides a level playing field for...