Assignment on

“Environmental & Ethical Issues”

Name:
Question No.1: Explain the term “old wine in new Bottle”.

This phrase means that an already established idea or establishment is offered as it was a new
one.

It have three different cases as follows (Jurcenoks, 2019):

1. (Negative) As a buyer being unhappy with a product which is touted as new and
revolutionary, but it really is the same old product as before which didn’t work.

2. (Neutral) As a Marketing Person/Product Manager, about re-launching an

underperforming product to a new target group or with different branding.

3. (Positive) As an entrepreneur who makes a product pivot using parts from earlier
product, in a new creative way.

Question No.2: List the 7 Stakeholders

Stakeholders are as follows (Borrington and Stimpson, 2013):

1:- Government

2:- Residents

3:- Suppliers

4:- Employees

5:- Competitors

6:- Consumers

7:- Businessmen Looking for Opportunity

Question No.3: Define the Following terms:

(1) External Costs

As a result of business activities, costs that are borne by the rest of society and not by the
business are known as External Costs (Borrington and Stimpson, 2013).

Examples: Radiations from a nuclear plant.

Producing electricity from coals leads to air pollution.

(2) External Benefits

Benefits that are enjoyed by the rest of society as a result of business operations and activities
are known as External Benefits. In other words these are the benefits that are enjoyed by
people or anyone outside the business organization due to its operations.
Examples: Producing electricity from Garbage reduces land pollution

Newly operating businesses will be source of employment

(3) Private benefits

Private benefits are the gains enjoyed by the business itself operating in the environment
(Borrington and Stimpson, 2013). The private benefit of a firm is its profit and on the other hand
the private benefit for a consumer will be its utility achieved.

Examples: The Money generated by a firm against its sales.

The need satisfied by the consumer by using a particular product.

(4) Social Benefits

Social benefits are the total benefits to society from producing or consuming a good. Social
benefits include all the private benefits plus any external benefits of production by a business or
consumption by a consumer (Borrington and Stimpson, 2013).

Examples: If a person uses cycling to work, cycling is less costly than driving.

Lower Pollution in case of cycling than Driving a car.

Question No.4: Assume you are the Chief Executive of Macau tasked with the
responsibility of lifting border restrictions.

1- Analyze the social benefit as well as cost to business and society.

2- Write an evaluation that justifies your decision of lifting border restrictions.

1- Answer

Social Benefits Cost to business and society

Benefit portability promises to lift a major
constraint on international labor mobility and
individual risk management.
A number of promising instruments exist to
establish benefit portability across borders.
Tourism promotion will add to businesses
performance and earning opportunities for
locals.
Because of immobility and closure of
businesses, gaming revenue decreased by
almost 60% YOY basis (Kang-chung, 2020)
Improved employment needs higher
payments.
Cultural constraints may cause problems due
to different cultural values
Tourism may carry danger of carriers of
Covid-19. However it may be reduced by
systematic scanning.
Government is planning to spend US$ 6.27
Trillion i.e. about 12% of the GDP (Kang-
chung, 2020)
Evaluation

It is useless to keep the city locked down even after successful quarantine period. If there are
no new cases registered in the city, it should go back to its normal life. This is good for the sake
of the economy and for the households as well. As far as lifting border restrictions, we can make
it count through proper systematic scanning system by which we can thoroughly check whether
the immigrants or tourists aren’t carriers of Covid-19. And for the locals, strong SOPs should be
generated for the safety of locals as well as of the foreigners. Through this we can get back to
stable economy and can show the world that we are safe enough against covid-19. Global
connection is always good for economic and personnel development. I hope that these points
are good enough to support my decision of lifting the border restrictions.

Bibliography

chung, Ng (2020, April 20). Coronavirus: Macau will be in the red for first time since handover
as gaming revenue plummets amid pandemic, its leader says. Retrieved from
https://www.scmp.com/news/hong-kong/politics/article/3080773/coronavirus-macau-will-be-red-
first-time-handover-gaming

www.quora.com

Borrington, K., & Stimpson, P. (2013). Cambridge IGCSE Business Studies (4th ed.). London:
Hodder Education.