Chapter 01

Characterizing Market Turbulence Today as a Source of

Market Opportunity
Executive Summary

The stable and predictable agricultural, infrastructure, manufacturing and energy economies of
hard products have been followed by economies that offer softer products such as services,
information, knowledge, healthcare, digitization, networking, globalization, entertainment,
sustainability, and currently, wellbeing and happiness. Such soft market products are loaded with
buyer-seller information asymmetries that create market risk, market uncertainty, market chaos and
ambiguity – all of which are specific types of market turbulence. In this context, this Chapter
investigates the phenomena of turbulence, specifically environmental turbulence whose major subsets
are technological turbulence and market turbulence. We cite several recent geopolitical variables and
events that have aggravated market turbulence such as Chinese Economic invasion of global markets,
Global Climate Change, Brexit, international asylum-seeking migrations, Artificial Intelligence, and
Demonetization. We also define market turbulence as varied forms of buyer-seller information
asymmetries (BSIA) for which both marketers and consumers must appropriate joint responsibility.
Additionally, we focus on ethical and moral marketing responsibilities for reducing BSIA under each
type of turbulence.

Introduction
The stable and predictable agricultural, infrastructure and manufacturing economies of hard products
are long gone. They have been followed by other less stable and more turbulent economies that offer
softer products such as services, information, knowledge, healthcare, Internet and online business,
entertainment, and currently, sustainability. Additionally, the world of computers has brought us high-
speed computing, low-cost storing, high-speed distribution, digitization, networking, outsourcing and
globalization – all these are milder forms of market turbulence. Such soft market products are loaded
with buyer-seller information asymmetries that create market risk, market uncertainty, market chaos and
ambiguity – all of which are specific types of market turbulences and challenges that corporate executives
must confront and capitalize upon (See Collins & Hansen, 2011; Venkatesan, 2013).

This Chapter defines and investigates market turbulence as generated by geo-political variables such
as Chinese economic invasion, climate change, Brexit, civil wars that force international asylum-seeking
migrations, Artificial Intelligence and its threat to massive global unemployment, and explores specific
ethical and moral marketing responsibilities for reducing buyer-seller information asymmetries under
each. Managerial implications are that doing so in a timely and effective manner may unfold hitherto
untapped market, revenue and growth potential in turbulent markets that, in turn, can generate sustainable
competitive advantage (SCA) to one’s organization.

What is Market Turbulence?

In general, market turbulence mainly arises out of an unstable economic climate, constantly evolving
consumer needs and up-and-coming technology.i The primary driving force in this new marketplace is
the consumer while the driving factor is innovative technology. The world as we know it is undergoing a
change; customers demand products and services that are newer, imaginative, exciting, innovative and

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saving on time and efforts, products with increased variety and availability, shorter lead-times and
increased differentiation at the same or lesser price!

From a marketing point of view, market turbulence is the rate of change in the composition of
customers and their preferences (Jaworski & Kohli, 1993). This rate of change is one critical element of
the environment that theoretically has an influence on the relationships embedded in market turbulence
(Dess & Beard, 1984).ii Market uncertainty shapes strategic choice and decision making (Child, 1972;
Duncan, 1972; Lawrence & Lorsch, 1967). Similarly, Sharfman and Dean (1991: 682) state that 'the
environment is those parts of the external information flow that the firm enacts through attention and
belief.' One logical extension is that environmental perceptions and beliefs shape culture and behavior
(Dutton & Jackson, 1987). Organizational memory is dependent on the conditions in which the firm
operates (Cyert & March, 1963; Levitt & March, 1988). Thompson (1967: 159) considered dealing with
uncertainty to be the 'essence of the administrative process.'

Accordingly, supply chains are likely to realize a positive influence of market turbulence on the
knowledge development-cycle time relationship given the dynamic nature of the behaviors involved in
KD. Indeed, applying the concept of requisite variety, (Ashby, 1956) suggests that, as the environment's
pace of change increases, a premium on developing knowledge emerges. Requisite variety means that
organizational entities, such as supply chains, must match the environment's complexity with their own
internal strategies and activities. A supply chain management skill at developing knowledge possesses a
greater arsenal of wisdom for overcoming the complexities created by rapid change than do other supply
chains.

Thus Market turbulence has a positive influence on the relationship between knowledge development
and cycle time performance (Hult, Ketchen, & Arrfelt, 2007). Further, as Aldrich (1979: 69) stresses, a
high level of turbulence ‘leads to externally induced changes ... that are obscure to administrators and
difficult to plan for.’ Weiss and Heide (1993) also note that rapid change in the marketplace can be
destructive and detrimental to already-existing cultural competencies (e.g., a culture of competitiveness)
that are deeply ingrained and embedded in the values and belief system of supply chain members. Thus,
while greater market turbulence increases the supply chain's knowledge development requirements
(Levinthal & March, 1981), greater turbulence in the marketplace also serves as a detriment to a culture
of competitiveness. Thus, Market turbulence has a negative influence on the relationship between a
culture of competitiveness and cycle time performance (Hult, Ketchen, & Arrfelt, 2007).

Tracking the Emergence of Economies, their market Turbulence and

Opportunity
Following this literature on market turbulence, Table 1.1 tracks ten emerging economies, each
in terms of its major industries, products, turbulence of market regulation, and corporate growth
opportunities that result from market turbulence. All entries in Table 1.1 are suggestive; some could be
added or deleted. Some economies overlap, and their precise origin and duration cannot be easily
determined. Each economy has its specific production, distribution and consumption processes and
technologies. Each economy is defined by its highest contribution to global GDP, global employment
and global buying power during its duration.

But in responding to these changes the pace, space, and impact of business education and
curriculum, business research method and methodologies, journals and books publications have been
either slow, unfocused and therefore, mostly irrelevant. That is, education industry response has been
primarily reactive than proactive, descriptive than creative. That is, at each stage of the ten economies,

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education and universities have more followed the markets than create knowledge and skills that
determine and control markets as the original purpose of a university was.

[Table 1.1 about here]

Political regulation and watchdog control has been scarce and ineffective. Hence the problems of
fraud, corruption and bribery in almost every economy and the industries it has spawned. Hence global
problems of poverty, destitution and squalor continue to shame and embarrass us, world pandemics of
hunger, malnutrition and disease keep decimating millions every year, and problems of worker safety,
security and job-loss anxiety and households’ lack of space and privacy keep us haunting. During the
past few decades the only thing that is growing is corporate fraud, institutional corruption and organized
lobbying and bribery, money-laundering, cheating, deception, and racketeering, tax evasion and black
money – all these grow unabated and unchecked.

An economy is a market system with an environment. All products and services offered in that
market economy are systems. A business corporation or organization that offers such products and
services is a system. A market that absorbs these products and services is a social or economic system.
Hence, fraud, corruption and bribery are system failures of bad human decisions and interventions.

Any of these systems could be at unrest or in a turbulent state at a given time. That is, these are
economic, market, business or environmental problems. Governments, politics, laws and legislatures,
economy, culture, religion, civilization, historical eras and epochs are systems in the world. When they
are at unrest, there are problems; they are turbulent markets; they can be growth and distribution
opportunities.

A business system at unrest or in turbulence, accordingly, may be unclear in its vision and mission,
its goals and objectives, its policies and procedures, in its strategies and tactics, and, hence, may fail to
realize expected goals and objectives. This is a business problem. This is the root cause of fraud and
corruption.

Current Market Turbulence and Economic Chaos

We are currently witnessing high turbulence in large and small corporations, and in large and small
market economies. Bigger companies, in particular, are failing more frequently and with gigantic losses.
Of the 20 largest U. S. bankruptcies in the two decades, 1985-2005, ten occurred in 2001-2002. During
the September-October 2008 collapse of the financial markets, about eighteen mega investment banks of
the world suffered a loss of a trillion dollars in market capitalization within the space of eleven months
(See New York Times, Thursday, September 17, 2008, A1). Most stock market indices and corporate
earnings have been erratic since the 2008 financial crisis. Even perennially successful companies are
finding it more difficult to deliver consistently superior returns. Companies like Disney, Ford, General
Motors, Daimler-Chrysler, Hewlett-Packard, Motorola, Nordstrom, and Sony – one time “built to last”
companies (Collins & Porras, 1997; Collins, 2001) – are performing just around the Dow Jones Industrial
Average (Hamel & Välikangas, 2003).

High CEO turnover in large corporations is becoming commonplace (e.g., Delphi, Ford, GM,
Hewlett-Packard, Nokia, Merrill Lynch, Gateway, and K-Mart). With imminent threats of junk bond
ratings, leveraged buyouts (LBO) or hostile takeovers, the Wall Street financial analysts and investor
sharks are exerting all-time high pressure on corporate executives to perform. The big global promoter
investors now own and control over 70 percent of the stock markets of the world, and have, accordingly,
penetrated corporate boardrooms and started exerting undue pressure on CEO’s to perform. Corporate

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boards and shareholders are increasingly demanding higher financial returns on investment (ROI), on
equity (ROE), on assets (ROA), net worth (NW) and higher earnings per share (EPS) and price-earnings
(P/E) ratios. The corporation as it has existed for the last 125 years is an endangered species. We must
reinvent the corporation if we must survive and revive the corporate world (See The Economist, October
24, 2015 for lead articles on this subject). This is the challenge of corporate ethics (see Chapter 08).

Possibly yielding to such Wall Street pressures, corporations have been regularly indulging in unusual
business practices such as creative or aggressive accounting, creative cash flow reporting, earnings
management or income smoothing via overstating earnings and understating debt, and, in general,
fraudulent accounting and financial reporting. Under whatever name, these unusual activities are a
financial numbers game (Mulford & Comiskey, 2002) or financial shenanigans (Schilit, 2002) with a
singular ultimate objective – creating an altered impression of the firm’s business performance. Fortune
(2002) featured twenty five such large corporate accounting frauds and security scandals, a research
conducted during 2001 in conjunction with the School of Business, University of Chicago. Great
industrial icons such as Enron, World.com, Parmalat, and Hollinger International became among the least
trusted corporations, according to a study conducted by Harris Interactive and the New York Institute for
Reputation.

Also, early 2000 marked the beginning of some of the worst corporate security irregularities in
history. Rapidly rising stock prices and the market collapse that followed led corporate executives to
unusual activities and accounting manipulations that were both morally questionable and reprehensible, or
just outright violations of the law. Forbes (2002) listed another set of twenty five massive securities
irregularities among top management executives, involving a corporate haul of over $23 billion,
averaging to over $923 million per company and in excess of $257 million ill-gotten gains per top
executive.

Some of the largest scams recently uncovered were in the utility business. Several wholesale power
traders revealed that they participated in the so called “round trip” or “wash trading.” For instance, wash-
trading practices among some energy companies created false congestion and generated industry and
household perceptions of an energy shortage in the troubled California energy market in 2001-2002.
Some would even argue that this practice contributed to the bankruptcy of the two largest California
electric utilities and forced subsequent government support to keep power flowing there. The price of
electricity skyrocketed and, in the end, it was the consumers who had to pay the price for corporate
accounting and financial irregularities or frauds, and even their bailouts.

Recent Major Factors that Generated Market Turbulence

Several geo-political variables and global events can cause market turbulence in many subtle ways.
We investigate a few of such recent variables and events.

Chinese Invasion of Global Markets

In the past three decades or so, the world has witnessed an unexpected phenomenon. No one had
imagined that China would grow at such an unprecedented rate and take on the world by surprise. It
happened not through accident but through careful and deliberate planning and expansion of the Chinese
economy. The world has changed with remarkable speed. It did not expect that China would ever
surpass traditional giants like USA, UK and Japan. The Chinese economy has been growing at ten
percent and even over for the last thirty years. The law of compounding is very powerful indeed and it is
verified in China. If we look at the projection for 2050, various futurist agencies project that the Chinese
economy will be twice the size of the American economy, and the Indian economy will be almost the

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same size as the American economy. Such projections might not be very accurate but at least they show
what financial analysts and macroeconomists think about the future of the world. Also, there was a report
from Peregrine (2002) stating that eventually China will have an economy larger than US. Initially,
Goldman Sachs had a projection for China to overtake US in 2027 but after the subprime crisis it was
changed to 2020. However, given the recent slowdown in the Chinese economy and the crisis of Yuan,
the projections have again been pushed back.

The most important political value for the Chinese is unity; it has maintained one Chinese nation, one
Chinese civilization for more than two millennia. In 1898, UK culled Honk Kong out of it that severed
China’s political unity for centuries until its sovereignty over Hong Kong was restored in 1997.
However, it was deemed necessary to have a separate set of rules for mainland China as well as for the
new recovered territory though it was later seen that it was just a formality.

China has developed high-speed railways-network so extensively that currently it is one of the largest
high-speed networks of trains in the world. China has also shown much progress in other transportation
sectors like airlines, buses, cars and ships. Meanwhile, Chinese exports are surging far exceeding imports;
its ships generally are fully loaded when they leave the ports of Shanghai while the ships are empty in
their return journey. Their ports are the most sophisticated ones in the world.

Manufacturing subsidies by the Chinese government have led to proliferation of every manufacturing
industry in China. Currently, almost every big brand does its assembly work in China to take the cost
advantage. This has almost wiped out the competing country’s factories and jobs. As Donald Trump said
"Thousands of factories have been stolen from our country," and he also added that hundreds of
thousands of jobs have been lost in this process. This raises the question of the end of the American
prosperity [Hartcher, 2017].

China was a socialist country with a majority of the population into agriculture. A few decades ago,
China was not considered as a threat to the traditional superpowers such as USA, UK, or Japan. In fact,
the indicators of human development and livelihood in China were so low that it was considered in the
category of Less Developed Countries (LDCs). In the period 1960-78, the annual growth rate of the GDP
was around 5.3% in China. This relatively slow growth, however, changed after the government
introduced new reforms in 1979 – China’s GDP growth started to rise at a much faster rate, sometimes
crossing into double digits. It was around 14.2% in 2007 which dropped to 9.6% after the recession. It is
still a very respectable figure hovering around 10.7% in 2010. [CIA, 2017]

With the rising growth rate, China’s global impact began to escalate - a phenomenon affecting the
lives of billions of people worldwide. The phenomenal scale of the impact of the economic invasion of
the Global Markets was intriguing in the beginning, and now begins to threaten the developed world. This
scale of things was something that inspired scholars to study this phenomenon. It unseated many
economies like Japan and UK and eventually US from top positions. This phenomenon began to change
the way people buy items, based out of cheap materials.

The country deployed means to understand that the world would need massive production capacity
and it could fulfill that need. The government initiates production subsidies so that Chinese products and
services enjoy competitive cost advantage. China soon resurrected from its phoenix ashes and is now
commanding world markets along several industrial (e.g., steel and steel alloys) and household (e.g.,
FMCG) product lines and brands. It has powers to hunt down satellites and has cache of artillery and
weapons that is rivaled only by the US. This mega entry into the world markets has caused some
significant market turbulence in the world. For instance, about 35% of the over 30,000 products and
brands retailed by Wal-Mart throughout the world are from China. Now everyone sees China as an Asian

5
tiger whose existence and growth are phenomenal. It is pulling almost half a million people out of poverty
every year - that is a big number in itself.iii

Global Climate Change and Policies

A major source of market turbulence is the looming issue of climate change and high levels of
pollution in the environment. Governments around the world are gradually beginning to understand the
need for innovative policies to save the environment and maintain it for future generations. All such
sustainability policies will affect the business world, corporations in particular, thus adding to corporate
market turbulence. In this context, the firms’ desire to outplay their competitors by competing in terms of
innovation and ‘clean and green’ products also serves as a driving force for turbulence in the goods and
services market around the world.

Corporate sustainability considers every dimension of business operation from supply chain to
marketing in environmental, ethical, economic, social and cultural spheres. It creates long term values for
all the involved stakeholders of that business activity such as employees, clients, owners, community,
consumers etc. It helps in developing strategies to build a company which adopts ethical and sustainable
practices to create a positive impact on the environment and society.

The Brundtland Commission's Report, Our Common Future, described sustainable development as
“development that meets the needs of the present without compromising the ability of future generations
to meet their own needs.”

The Paris Committee of Climate Change represented by 195 countries ended on December 12, 2015.
The participating countries agreed on the goal of keeping the increase in the global average temperature to
“well below 2oC above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5oC
above pre-industrial levels.” They will also pursue a goal of zero net carbon emissions – removing as
much greenhouse gas from the atmosphere as is being added to it by 2050. In all, 187 countries vowed to
make “intended nationally determined contributions” (INDCs). Their pledges are lodged with the
Secretariat of the UN Framework Convention on Climate Change (UNFCCC), which convened the Paris
talks. The main sticking points were deciding who should do what, and who should pay (Newsroom,
UNCC, 2015).

Most recently, USA backed out of the Paris Climate Change agreement with the help of its own
institutional body – Environmental Protection Agency (EPA). This entire situation has been analyzed by
legal bodies and since there is no legal binding, the UN is left powerless against the Trump administration
and its move.

Currently, firms face high levels of market or customer scrutiny and checks regarding the
environmental and social aspects of their operations. Even major investment funds across the globe have
added a social or environmental impact factor in their assessment of possible investment opportunities.

The UNFCCC, which dates from the 1992 Rio Earth Summit, calls on nations to “act in accordance
with their common but differentiated responsibilities.” The world’s biggest carbon emitters China
followed by USA will also be held to their differentiated responsibilities. The new agreement requires a
flow of $100 billion from the developed countries to developing nations by 2020 much of it earmarked
for meeting the climate change goals.

The UNFCCC framework also lays out how to ensure that countries are doing what they pledged to
do. It is typical that in a zero-sum game all players will want others to do more while they do less.

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Having countries sign up only to what they think they can do made the Paris agreement possible, but
thereby, weak. For instance, the pledges from China and India to double the world’s wind and solar
capacity within 15 years will be great INDC once realized.

Currently India generates 71% of its electricity from coal. Its INDC makes no commitment to cut
total emissions; its pledge to install 100 Giga-watt (GW) of solar power capacity by 2022, up from just
5GW now, would require serious reforms to its energy sector that currently stretch credulity.

Meanwhile, the Paris Summit Agreement may inspire leaders of cities and companies to redouble
their ecology and sustainability efforts. Firms including Apple, Google and Unilever are taking steps
towards cutting their emissions by large amounts, as are some cities like Hong Kong, London and Rio de
Janeiro.

The planet earth is a shared common resource which we have borrowed from our future generations.
We therefore have no right to exploit the natural resources to meet our ever-increasing greed. Adopting
sustainable development is not something that has to be mandated through laws; it is the ethical choice
which each one of us should make. It is the right thing to do – an ethical call! It is the right thing to do
rightly – a moral summons! It is the right thing to do rightly for the right reasons – a spiritual quest!

Brexit and Global Market Turbulence

Brexit refers to Britain’s exit from the European Union. Britain has been trying to exit the European
Union since 1975, when the Referendum on the European Community (Common Market) took place on
5th of June 1975. About 67 percent of the votes were in favor of staying as a part of the European Union
(then European Economic Committee).

A referendum was held in UK on June 23, 2016 invoking the Article 50 of the Treaty of Lisbon.iv The
referendum turnout was 71.8%, out of which 51.9% voted to leave the EU while 48.1% voted to stay.
About 30 million people participated in the voting. England and Wales voted in favor of Leave while
Scotland and Northern Ireland voted in favor of Remain.

The move has triggered a lot of uncertainty in the global environment. In this scenario, the market
turbulence can be characterized objectively (determined by factors of political governance) as this is
essentially a political statement that the UK has made after its long association with the European Union.
This turbulent market can be considered evolutionary as this is a new step on part of the UK after a
thorough retrospective examination of its association with the EU in the past. Another fact that makes this
market turbulence challenging is that thus far there was no case of a nation actually deciding to leave the
EU. The other nations of the EU have accepted it as a prominent part of their identity and are satisfied
with this centralized approach of brotherhood. The United Kingdom, however, has pioneered the
movement towards building its own identity after a long relationship with the EU.

The impact of the Brexit shock is expected to continue thereafter for at least one generation to come.
After the announcement of Britain's exit from the European Union, the pound collapsed and lost a tenth of
its value against the dollar, as the markets acted irregularly and reacted to the market phenomenon of this
system. The political clashes were not simple. Prime Minister David Cameron, who supported the
"permanence" campaign, had to resign. A no-confidence vote was cast against Jeremy. A close fight was
on the cards, but still extremely few were prepared for a Brexit win. The prophecies, predictions and
analysis of all pundits and political commentators failed to anticipate the result.

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Immigrant Populations and Global Refugee Crisis
The Geneva-based International Organization for Migration (IOM) estimates that by the end of 2015,
the death toll from refugees trying to reach Europe by the Mediterranean route may reach 30,000 –
making it by far the worst year on record – 10 times the death toll for the previous record year in 2014.
The scale of loss led to an emergency summit of European Union heads of government on April 23, 2015.
Most illegal border crossings to the EU by sea come from Syria, Eritrea, Afghanistan, Mali, Gambia,
Nigeria, Somalia, Palestine, and Senegal, and now, from Myanmar. Most seek asylum in Germany (had a
refugee per 1,000 population of 2.4 in 2014), Sweden (12.2), Italy (1.3), Switzerland (7.4), France (3.8),
Britain (2.0), Belgium (2.7) and Denmark (2.4), reported The Economist, (April 25, 2014, p. 20).
Hundreds of thousands of migrants – 275,000 in 2014 estimated by Italian authorities - who are lucky
enough to survive the journey to mainland Europe, land first on the so-called frontline states of Spain,
Italy, Malta and Greece, and from there, they travel on to other EU members.v

As Europe confronts a rapidly escalating migration crisis driven by war, persecution and poverty in
an arc of strife from West Africa to Afghanistan, even high-level European officials are beginning to
admit the obvious. This phenomenon that affects economic, labor, commodity and money markets of the
world, has provoked reactive strategies such as Brexit and severe economic sanctions, and thus affected
corporate choices and decisions. Corporate Ethics for Turbulent Markets should explore a human,
harmonizing and humanizing systems-solution to this massive pandemic phenomenon – a daunting
challenge to corporate political ethics and morals - seemingly, a case of International Population
Dumping!

The lives of millions of Syrian civilians hang in the balance as the Presidents of Russia and the USA
prepare to meet on the side lines of the G20 summit in Germany on 7 July 2017, to discuss counter-
terrorism initiatives and a political resolution to Syria’s war, said Amnesty International.vi “For civilians
in Syria decisions made by President Trump and President Putin are a matter of life and death. A
continuation of present policies would have disastrous consequences for the people of Syria, who have
endured unimaginable suffering for more than six years,” said Samah Hadid, Middle East Director of
Campaigns at Amnesty International. “The USA and Russia must publicly commit to protecting civilians
in Syria and to ending violations by their own forces as well as by the warring parties on the ground. Both
countries and their allies are responsible for the deaths and injuries of hundreds of thousands of men,
women and children. It is time to end the bloodshed.”

Migration is fundamentally the story of the human race from its origins to the present. Migration is an
integral aspect of life on this planet. People move to survive. They move in search of food. They move
away from danger and death. They move towards opportunities for life. Migration is tied to the human
spirit, which seeks adventure, pursues dreams, and finds reasons to hope even in the most adverse
circumstances. Such movement affects the communities migrants leave and the communities that receive
these migrants. This movement also impacts communities along the route of transit.

Globalization is frequently viewed in economic and environmental terms. Goods and services move
easily across regions and national boundaries. With this growing economic interdependence, some would
argue that it is only natural that people (labor) follow the capital, wherever that might take them.
Similarly, some argue that people should not have to move for jobs, but instead governments should
encourage capital to remain in the nation and should protect jobs for citizens. Global warming and
resource depletion have no boundaries. Some feel that these environmental issues cannot be addressed by
nations acting individually. Thus, they might argue that the movement of people around the globe
becomes the province of the world, not that of individual nations. Others believe that in order for
countries to protect their environment they need to restrict immigration.

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 The growing interdependence of economies regionally and globally is a good predictor that migration
will not be stagnant and that it will follow increasingly more complex patterns. Some might argue that
this trend is a positive one. Others might disagree and would urge the use of national resources to stem the
tide of globalization in order to protect the integrity of nation states, their boundaries, and their
economies. Some might posit that globalization is occurring in spite of nation-states, while others would
argue that globalization is the product of decisions and actions taken by nation-states. If changes in the
movement of goods and services mean the movement of people will also change, are leaders and policy
makers prepared to periodically re-assess their assumptions and theories in order for policy to keep pace
with shifting migration patterns?

This market turbulence of international immigrations raises several ethical and moral issues:

1. Does the rest of the world have an ethical and/or moral duty to welcome, shelter and help
international asylum-seeking immigrants (or refugees) seek some hope in life? If so, based on what
ethical and moral theories, and how could you enforce such a duty?
2. According to an old UN convention, refugees are the responsibility of the country they land, while
they can refuse shelter to the economic migrants. This may be neat theory. But in practice how does
one distinguish between refugees and economic migrants in the midst of massive crises, and how does
one discriminate between them on human grounds?
3. Sheltering the refugees and economic migrants cannot be justified or mandated by utilitarian and
deontological theories. But could you invoke the ethical theories of distributive justice and corrective
justice to safeguard the natural rights of refugees and economic migrants? How do you execute this
humanitarian move?
4. In the end, the ethical theories of virtue, especially that of compassion, can best defend the rights of
the migrants and the duties of the richer nations to accept and nurture them. Does this appeal to
you?
5. In a globalized and highly networked world, what would be a holistic and radical (i.e., strike at the
root causes) solution to resolve the refugee and economic migration problem in a humane, ethical
and moral way, and with what lasting effect?
6. How can the world take stock of the persecuted people of the world, and pre-emptively save them
from mass genocide?

Artificial Intelligence and Market Turbulence

Artificial intelligence, as the name suggests, is the intelligence displayed by computerized machines
in order to learn from experience, adjust to the inputs given, and perform human like tasks that display
intelligence. According to father of Artificial Intelligence, John McCarthy, it is the science and
engineering of making intelligent machines, especially intelligent computer programs. It is a way of
making a computer-controlled robot think and behave as intelligent humans do. Most AI examples like
self-driving cars, chess playing computers and others rely heavily on deep learning, machine thinking and
natural language processing. Using these advanced technologies, computers can be trained to perform
specific tasks by processing huge chunks of data and recognizing patterns present in them. Many
companies are using AI in order to increase their design, productivity, sales and market share. Robots are
being installed in factories for doing work. Driverless cars – which seemed to be a distant dream in the
past – have already got into our roads and expressways.

Artificial Intelligence or commonly known as AI can be defined as a branch of computer science

dealing with the simulation of intelligent behavior in computers or the capability of a machine to learn
and imitate intelligent human behavior.

Artificial intelligence (AI, also known as Machine Intelligence, MI) is the intelligence displayed
by machines, in contrast with the natural intelligence (NI) displayed by humans and other animals.

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Colloquially, the term “artificial intelligence” is applied when a machine mimics “cognitive” functions
that humans associate with other human minds, such as “thinking,” “learning” and “problem solving.” In
fact, the term machine intelligence is used because a machine mimics the cognitive functions that humans
associate with human ability such as logical reasoning, learning and problem solving.

Although mostly people use artificial Intelligence and, robotics and automation interchangeably,
both of them are very different. While robotics and automation use sensors and manual programming for
its functioning, AI mostly – but not always – uses an algorithm by which it is able to learn a process on its
own. Artificial Intelligence is a much more advanced form of technology that might not require any form
of coding for its functioning and could be taught or trained to perform the specific functions as per
requirement.

The likes of Stephen Hawking, Elon Musk, Bill Gates, Steve Wozniak, and many other big names in
the field of technology have recently expressed concern about the risks posed by AI. Chatbots, Personal
assistants, Robo-advisors, Machine learning, Cognitive computing and so much more – these are major
versions of AI today. From voice recognition tools in our mobile devices to various self-driving cars,
artificial intelligence (AI) is progressing very rapidly.

The first AI program was created by Arthur Samuel to enable a computer to play Checkers in 1952.
This technology has leaped several light-years forward in the 65 years since with today’s sophisticated AI
bots are able to do just about anything from having fluent conversations with people to controlling
driverless cars. In fact, most online spaces are populated with AI bots that communicate with humans
through chat rooms without anyone being the wiser. Just last month, the humanoid robot Sophia,
developed by Hanson Robotics was given citizenship by Saudi Arabia. This development is a true
landmark of the coming of age of sophisticated, advanced Artificial Intelligence.

In the 1960s, US Department of Defense started research on training computers to mimic basic
human reasoning. In the 1970’s, the Defense Advances Research Projects Agency (DARPA) successfully
completed their street mapping projects. In the 1980s, Machine learning began to flourish. This period
was also marked by the commercial success of expert systems. This is a form of AI program that
stimulates the knowledge and analytical skills of human experts. In the late 1990s, AI started to be used
in the fields of data mining, logistics management, medical diagnosis etc. Advanced statistical learning
known as Deep Learning coupled with faster computers and large data processing to enable advances in
machine learning. The Era of 2000 saw the usage of AI in almost all fields. By the mid 2010s, machine
learning applications were used throughout the globe. This was no big surprise when IBM’s question
answering system, Watson, defeated two greatest jeopardy champions.

The year 2015 was marked as the landmark year for AI since the number of AI projects increased
rapidly. This was mainly due to an increase in the neural networks brought about by development in
research tools and datasets and advanced cloud computing structures. A neural network is made up of
interconnected units that process information between each unit.

About 200 years ago, the Industrial Revolution remolded our society completely. As of today, another
revolution is underway with further serious reaching consequences. Artificial Intelligence is totally going
to change the way we produce, develop, deliver and manufacture. Every major company is investing
heavily in AI-oriented technology. Not only repetitive tasks but many skilled jobs done by humans can be
replaced by computers in the near future. The McKinsey Global Institute has suggested that AI is
‘happening ten times faster and at 300 times the scale, or about 3000 times the impact of industrial
revolution. Not only routine work but also the knowledge work is now automated largely. Manufacturers
have begun to incorporate machine learning into their industrial equipment with a view to improve the
performance of production processes.

10
 By 2025, Artificial Intelligence is expected to spread in every walk of life. It has been predicted that
by 2040, artificial intelligence will become unstoppable and humans losing both faith and control and
being taken out of decision making processes. Machine learning capabilities have advanced so much in
these days that it is difficult now to determine the possible changes in future. There are speculations that
this AI is going to be the cause of third world war. The fear hovering over AI is in a similar vein to the
debate over nuclear power: it can be used for massive destruction. But it also has the ability to power
cities all over the globe. The technology in itself is not destructive; however, human tendency to design
technology in order to harm other humans is massively destructive.

Demonetization in India and Market Turbulence

It was the evening of 8 November, 2016 when Prime Minister Narendra Modi decided to surprise the
nation with an unscheduled live telecast. In store for a population of over a billion people was the
demonetization of existing Rs 500 and Rs 1000 notes to be effective from the midnight of the same day.
The demonetized currency was around 86% (Rs 15.4 trillion) of the total monetary base in a country that
by many estimates is close to 90% reliant on cash. Among the many reasons cited for the act, the most
quoted and harped was the weeding out of black money from the economy which would consequentially
uproot corruption. The immediate reactions varied from euphoria to paranoia as confusion reigned
supreme over the fate of the cash people possessed in the outlawed denominations.

The initial narrative on striking a death blow to the black money in India was followed by the power
of the move to address concerns of counterfeit currency which the people were told was running the
terrorist networks. The Governor of the Reserve Bank of India, Urjit Patel explained in a press conference
that one purpose of the action was to fight terrorism funded by counterfeit notes. The supply of Rs 500
and Rs 1,000 banknotes had increased by 76 percent and 109 percent, respectively, owing to forgery. Not
surprisingly, the RBI governor told that he was aware of the move since six months and that the printing
of the new notes had already begun.

The move was a lightning bolt delivered from clear skies and upheaval was definitely on the cards.
The move led to speculation, resentment, trade outflows, massive queues in banks and ATMs but even
worse was the hit taken by the unorganized sector, by the lower strata of the society not accustomed to
digital transactions or having the luxury of card payments. Small and Medium enterprises, daily wagers,
transportation, health facilities, groceries and everything that entailed the use of currency was severely
hit. It was a horrendous experience for people to wait in queues in the day and a permanent black spot on
the execution of the plan that people had to lose their lives in an attempt to manage their hard earned
money, solely due to a government decision. On a macroeconomic scale, the ramifications were huge and
are still unfolding.

Demonetization caused an economic and social upheaval like no other policy decision in recent times.
Market turbulence, in its most literal form was the consequence of this policy decision. Supply chains
were affected, inventories piled up, the automobile sales plummeted in the festive season, labor migrated
back to their home states for lack of payment by contractors. Real estate business slumped, stocks fell by
an average 6% the very next day as crores of wealth was wiped away in the day’s trade. For the direct
relation demonetization shared with the Indian economy, we have chosen the impact of demonetization
on the Indian economy as our unit of analysis.

In a study conducted by the All India Manufacturer’s Organization, a group representing over 3 lakh
MSME and large scale industries, within the first month of the announcement, employment fell by 34%
and revenues were down by 50%.vii The biggest hit was taken by small players in industries like textiles,

11
marble etc. and by export-oriented businesses. The reasons were attributable to staff absenteeism,
depreciation of rupee, zero cash inflows hampering the ability of the employer to pay the employees.

The cash shortage that erupted after the announcement was a testimony to the monumental failure of
the agencies in planning the execution of the policy. The daily limit for withdrawal of cash was soon set
at Rs 2000, while the only new denomination available was Rs 2000. There were cases aplenty where
after waiting in the queue for hours, one would get a single Rs 2000 note that all shops practically refused
to accept coz they could not provide balance change after a transaction. Most of the ATMs exhausted
their reserves in a few hours. Even three months after the announcement, a quarter of the ATMs were still
short of cash. The situation was much worse in the rural hinterlands where the ATM network is not robust
and where understaffed banks were overwhelmed with people queuing up for depositing old
denominations and withdrawing cash.

The decision also caused immense turbulence in all businesses related to weddings. It was the
wedding and festive season at the time of the demonetization. Caterers, wedding planners, decorators,
myriad garment shops and even the petty florists everyone struggled in the whirlpool of turbulence as the
Indian wedding function is built upon managing countless errands paid for largely in cash. There were
numerous instances of weddings being cancelled or people having to endure unimaginable hardships to
make the event possible. The government was taking knee jerk measures to reported incidents of public
outrage and humiliation but reactive decisions only added to the confusion regarding daily cash
withdrawal limits, documentation required and so on.

Transport sector was severely hit as gas filling stations and toll plazas refused to accept old
denominations despite the government directions for hospitals and some utility services to continue
accepting the old legal tender. Following demonetization, estimates put the number of trucks that were
stranded on highways and toll plazas at 400000. Logistics and supply chains drive industry and in with
stranded trucks the markets were soon reeling under huge supply demand deficit. Perishable goods worth
millions were lost as FMCG companies grappled with the induced turbulence in the market. There was no
way that businesses could have predicted the measure that was banking upon the element of surprise for
its effectiveness. Subsequently, the government announced that toll tax will not be collected until
December 2, 2016; but most of the damage had already been done.

Structure of Market Turbulence

Management literature often speaks of two types of turbulences that a firm must respond to
constantly: market turbulence and environmental turbulence. Strategic choice theorists have long
suggested that firms actively manage and control their strategy such that they can adapt to environmental
forces and remain competitive in the market. This stream of research places emphasis on a firm's ability
to cope with the direct challenges of competitive forces (Porter, 1991). In particular, the literature
suggests that market and technological environments are two profound forces influencing MNCs (e.g.,
Lee et al., 2008).

Several ethics models refer to the environment as a factor that impacts ethical decision making.
Morris et al. (1996) found that environmental turbulence had an impact on professional ethics. Higher
levels of turbulence were associated with stronger personal values, lower standards in terms of informal
norms and greater belief in the efficacy of ethical codes. Morris et al. (1996) also assert that
environmental turbulence has implications for codes of ethics. They posit that, under conditions of
environmental stability, codes are likely to be more applicable to the nature of typical ethical dilemmas or
expected ethical problems. Well-defined company codes can be a guide for behavior in non-turbulent
times; employees are able to rely on codes to assist them in their response to ethical issues. Turbulence,

12
on the other hand, can lead to uncertainty regarding ethical standards and increased variability in ethical
judgments as codes provide less of a guide in times of uncertainty. In their model, turbulence is
positioned as an exogenous variable. So, too, are personal variables. Both turbulence and personal
variables are posited to impact ethical perceptions.

A positive relationship between perceived environmental uncertainty and role conflict and role
ambiguity has been reported (Lysonski et al., 1988). Often, such role conflicts and ambiguities can lead to
ethical dilemmas and unethical behaviors (e.g. Carroll, 1992; Ferrell & Gresham, 1985). Indeed, most
uncertainties translate to ethical dilemmas (Dubinsky & Levy, 1985; Gifford & Norris, 1987). This is
particularly true as many marketers have little formal training regarding the management of ethical
problems (Mascarenhas, 1995). The above literature leads to the specification of the following
hypotheses: Ethics code awareness decreases as business turbulence increases. Ethics code usefulness
decreases as business turbulence increases (Chonko, Wotruba, & Loe, 2003, p. 239).

Relevance of Corporate Ethics under Market Turbulence Today

Market turbulence refers to the rate of change in customer preferences and competitive actions in a
host country (Cui et al., 2006; Lee et al., 2008). It determines how foreign firms interpret local market
information and knowledge generated from their major competitors and customers and then act on and
exploit any opportunities presented in such unpredictable environmental changes. In the presence of a
turbulent market environment, such as more intensive competition and more fluctuated demand, it is
important that the foreign firm can sense its own host market and take actions faster than its rival firms in
response to different and subtle changes in its local market (Grein, Craig, & Takada, 2001; Luo, 2001).
Longer delays in responding to host market conditions may cause the foreign firm to lose its local market
position (Grein, Craig, & Takada, 2001). As such, market responsiveness is a desirable strategy because it
requires the foreign firm to apply its existing knowledge to react to changing local market conditions
(Lee, Chen, & Lu, 2009). When market turbulence increases, the foreign firm is more likely to increase its
market responsiveness accordingly.

Similar to market turbulence, technological turbulence may call for equal attention to foreign firms
(Lee et al., 2008). Technological turbulence refers to the rate of change in new products and processes as
a result of proliferating technology in a given host country market (Jaworski & Kohli, 1993; Tushman &
Anderson, 1986). When the foreign firm faces a high level of volatility, change, and unpredictability
related to the technology of its host country, market responsiveness that emphasizes timely response to
local competitors and customers through the use of existing knowledge could be an attractive marketing
strategy (Lee, Chen, & Lu, 2009). Frequent changes in technology can make a firm's product obsolete
faster. However, by exploiting alternative markets for its existing products faster than its counterparts, the
foreign firm can extend its product life cycle to the untapped markets in its host country. Despite being
more reactive, this strategy provides a more cost-effective and speedy means for the foreign firm to
overcome the challenges associated with frequent updates of new technology in its local market.

Market Turbulence as Market Certainty, Risk, Uncertainty and Chaos

Market problems create market turbulence, and vice versa. Primary source of market turbulence are
market problems created by objective economic factors (e.g., uncontrollable world trade, globalization,
outsourcing, currency fluctuations, inflation, competition, over-regulation) and subjective personality and
behavioral factors (e.g., greed, currency manipulations, fraud, corruption, bribery, money-laundering,
chicanery, deception, racketeering, cartelization, price collusions, and the like).

13
 A problem is a “system at unrest” (Ackoff & Emery, 1972), and unrest (or turbulence) is caused by its
constituting variables and their interactive relationships. Any problem can be stated as P = f(X, Y), where
X is a vector of controllable variables for the firm, and Y is a corresponding vector of uncontrollable
variables for the firm in question. The set of uncontrollable variables defines one’s environment of
constraints and threats, regulation and overregulation, especially one’s competition. The set of one’s
controllable variables is one’s resources of skills and competencies, patents and technologies, core
products and services, core target markets and customer loyalties, and core suppliers and support systems.
Two sources of turbulence can be distinguished: a) ignorance about variables; b) ignorance about
relationships between variables. Hence, one way of characterizing market turbulence is presented in
Table 1.2.
[Table 1.2 about here]

Given this problem characterization, we can distinguish four states of market knowledge and
challenge:

 “Certainty” is when you know both controllable and uncontrollable variables and the relationships
between these variables – this situation generates “simple” solvable problems (e.g., costing, pricing,
purchasing, and ISO 9000 quality assessment in a deterministic world of agro-economic markets).
In the older worlds of agricultural and manufacturing industries, there was more certainty about
weather and seasons, natural and mineral resources, manufacturing processes and intended
outcomes, and hence, about produce and products, markets and demand.

 “Risk”: The world of “risk” arises when you know your controllable and uncontrollable variables,
but do not fully understand their interrelationships that clue and generate outcomes. This is the
world of “complex” problems where you know how to formulate problems but do not know their
solutions. That is, the solutions are stochastic in nature but with known or estimable probability
distributions. Hence, you experiment with different “solutions” and estimate the probability
distributions of their outcomes, calculate the tradeoffs of costs and benefits under each solution, and
act accordingly. This is the typical world of auto and life insurance markets, labor and recruitment
markets, health and healthcare markets.

 “Uncertainty” arises when you do not fully know or identify the controllable and uncontrollable
variables, but you can estimate their interrelationships in a given marketplace, and accordingly,
frame problem resolutions. This is the world of “unstructured” problems since the structuring
variables are unknown. That is, the problems themselves are stochastic in nature, often with
unknown probability distributions. For instance, in dealing with cancer we still do not know all the
controllable and uncontrollable variables, but keep trying out various experimental solutions such
as chemotherapy, implant radiation, platelet reinforcement, surgery and the like. In dealing with
recent financial crises and the collapse of world financial markets (say, September-October 2008),
we still do not know the exact variables that caused such disasters, but we try different rescue
solutions such as federal bailout, tax subsidies and havens, and forced corporate buyouts. Possibly
these financial debacles were man-made, but then we must do some serious soul-searching in terms
of our inherent vices of greed, avarice and jealousy.

 “Ambiguity”: Fourthly, “chaos” and “ambiguity” occur when we do not know the controllable and
uncontrollable variables in a given problem nor their interrelationships. These are often designated
as “wicked problems.” Here both the problems and their solutions are stochastic in nature with
unknown probability distributions. Typical examples are floods, tsunami, earthquakes, plagues,
epidemics, and other natural disasters. Most man-made problems of recession, collusion, oil and
drug cartels, mafia, terrorism, and wars probably belong to this category. Here we cannot
formulate the problems clearly and neither do we know the solutions. We have to “tame” the
problems by circumscribing them with narrower domains and boundaries before addressing them.

14
 Rittel and Webber (1973) were the first to introduce the notion of “wicked” in social problems as
opposed to “ordinary” problems. Most natural disasters (e.g., Tsunami, Katrina, Gustav, earthquakes) are
wicked problems on the geo-physical level. Some wicked problems are human-made such as labor
strikes, sabotage, vandalism, gangsterism, terrorism, 9/11, consumer boycotts, and corporate fraud. Some
socio-economic problems are also wicked in nature (e.g., recession, depression, inflation, unemployment,
organizational decline, massive layoffs, plant shutdowns, and personal or corporate bankruptcy). Some
wicked problems arise because of hyper growth (e.g., Wal-Mart still wanting to grow bigger and faster
despite saturated retail markets; Ford, GMC, Toyota and the other automakers still want to sell more
millions of vehicles when the current North American markets are saturated, polluted and recessionary).
Thus, one could link the wicked problem of terrorism to some nations seeking superpower over others;
the wicked problem of healthcare in the U. S. or India may be linked to the inordinate profit seeking goals
of healthcare systems such as designer brand hospitals and diagnostic systems, certain pharmaceutical
companies, health insurance companies, and in general, the cost of medical and legal educational
professions. Most public issues in the world today (e.g., poverty, income inequality, social inequality,
economic inequality, genocide, wars, and global climate change) stem from and create wicked problems
of avarice, greed and exploitation.

Currently the marketplace in any industry, country or at the global level is riddled with risk and
uncertainty, chaos and ambiguity. The world of certainty and clear-cut truth is either shrinking or
ignored. The world of market certainty has almost disappeared in the last few decades.

Please note that corporate “value ethics” is present and challenged in every quadrant; it gets
aggravated as we move from certainty to risk to uncertainty to ambiguity. One must respect and expect
the fact that in the field of business management we have certainty and uncertainty, risk and ambiguity, of
different levels of severity and consequences. Hence, many erstwhile assumptions and generalizations do
not hold any more, and our problems and markets need to be reformulated, our corporations and
institutions need to be reinvented, our governments and regulations need to be re-designed and
experimented to overcome this market confusion. In such a turbulent world, every value is not just black
and white, right or wrong, good or evil, just or unjust, fair or unfair, truth or falsehood, sin and grace.
There has arisen, instead, a large grey area where we encounter different shades of legal and illegal, truth
and untruth, good and evil, right or wrong, justice or injustice, ethical and unethical, moral and immoral
contexts and situations.

Corporate value ethics must confront these challenges and act accordingly. Organizational ethics
cultures must live with these risks and uncertainties, chaos and ambiguities of the marketplace and make
sense out of them. Creative and innovative companies thrive in this world of turbulence and chaos. Jim
Collins and Morten Hansen in their book Great by Choice (2011) studied Fortune 500 companies that did
just that and won market success and triumph.

All of us need the right moral change in the right direction, at the right time, and with the right
people. The corporations should lead this ethical and moral change. We have excellent examples of such
change documented by David Bollier (1997), Jim Collins (1998, 2002), Jim Collins and Morten Hansen
(2011), Stephen Covey (1989, 1994, 2004), Patrick Lencioni (1998), Thomas Peters, Robert Waterman
and Ian Jones (1982) and Thomas Peters and Nancy Austin (1985), to name a few.

This book on person-centered corporate ethics is all about the process of generating ethical and
moral change and convictions in corporations and their executives.

Market Turbulence as Buyer-Seller Information Asymmetry

15
 Based on Mascarenhas (1988) and Mascarenhas, Kesavan and Bernacchi (2008), we suggest that one
effective way of characterizing market turbulence from a moral responsibility perspective is by defining it
as buyer-seller information asymmetry (BSIA). BSIA is spread through all markets and in all countries.
In some markets it is so pronounced that it can trigger fraud, corruption, bribery and other money-
laundering scams. Understanding market turbulence as BSIA identifies all the stakeholders who create
BSIA and who often thrive in it. Understanding market turbulence as BSIA spreads marketing
responsibility across all actors – it is a joint moral responsibility for reducing BSIA between all buyers
and sellers, and thus for reducing harmful forms of market turbulence (see also Mascarenhas, Kesavan, &
Bernacchi, 2004, 2006).

Nature of Buyer-Seller Information Asymmetry

Information refers to “knowledge at a particular time of the values of different variables” that influence
decisions (Rasmusen, 1994: 11). Buyers and sellers in a marketplace have different amounts of relevant
information about the quality of the goods and services exchanged. The fact that consumers are not fully
aware or informed about the unobservable quality of certain products or services (particularly in relation
to their functionalities, costs, and benefits) illustrates the day-to-day reality of BSIA in the marketplace.

The difference of quality as perceived by the firm regarding its products and as perceived by the
prospective consumers is a measure of IA in relation to quality (Parker, 1995, p. 292). Certain products
and services belong to low IA environments, such as lawn care, dry cleaning, and package delivery (UPS,
FedEx), and customers can readily ascertain the quality underlying the service and make fairly objective
comparative judgments on competing services (Nayyar, 1993).

The critical importance of Information Asymmetry (IA) in general and Buyer-Seller Information
Asymmetry (BSIA) in particular was highlighted by the works of three Nobel Laureates in economics in
2001—George Akerlof (1970), Michael Spence (1973, 1974), and Joseph Stiglitz (1977, 2000). Akerlof
(1970), who coined the term IA, was the first to describe and model BSIA in relation to lemons (a bad
used car) and plums (a good used car). Akerlof (1970) proved that IA adversely affects both the volume
and quality of used cars traded in the market. Spence (1973, 1974) studied IA in relation to job markets
where highly skilled workers are often indistinguishable from low-skilled manual workers. Stiglitz (1977,
2000) investigated IA in the insurance market, where monopolistic insurance carriers can impose high
premiums, while those needing insurance coverage may not be prepared to reveal all their vulnerabilities
to carriers lest their premiums should escalate. Akerlof (1970), Spence (1973), and Stiglitz (1977) also
proved that under IA there would eventually be market failures. Hence, reduction of IA is not an option
but an economic and social obligation if markets should survive and expand around the globe. Thus, the
Federal Trade Commission (FTC) noted in its 1979 report, “Information remedies have the direct benefit
of improving the free flow of truthful commercial information. Informed consumer decisions then give
sellers an economic incentive to improve the quality and selection of their marketplace offerings” (p. 14).

Under Table 1.3, we trace and list the sources of Local, National and Global Spread of Market
Turbulence. Each source of market turbulence as BSIA can be traced to a) objective economic factors; b)
a mix of objective and subjective factors, and c) a set of subjective (man-made) factors.

[Table 1.3 about here]

Consider also some technology/capital intensive services that are low BSIA environments, such as the
travel industry, including airlines, railroads, buses, and dinner cruises. In general, customers are aware of
quality attributes such as prompt arrival and departure times, duration, ticketing and reservations, seating,
and the like such that customers can assess competitive offerings and make accurate

16
cost/quality/convenience trade-offs before undertaking purchase decisions.

When BSIA is high, however, in certain professional knowledge-intensive service industries (e.g.,
management consulting, legal counsel, health care service, and psychiatric counseling), the ability of the
customer to objectively assess competitive offerings is considerably reduced (Nayyar, 1993). In such
cases, high BSIA may constrain customers from identifying, differentiating, and patronizing superior
services (Lowendahl, 2000) and from undertaking accurate cost/quality exchanges (Nayyar & Templeton,
1994).

IA is a problem primarily for “experience” products (and services)—that is, products whose quality is
unobservable prior to purchase but is observable after purchase and use— but not for “search” products,
whose quality is observable prior to purchase (e.g., low-cost goods such as produce, poultry). In tangible
products, the problem of asymmetry occurs in relation to experience products whose quality is
unobservable. For products whose quality is not a mystery, the building of reputation, brand name,
cobranding, seeking a brand ally, or offering of warranties and guarantees may still prove useful in
reducing asymmetry (Rao & Ruckert, 1994).

As opposed to search goods and experience goods, economists distinguish a third class known as
“credence goods.” These are goods whose utility impact or quality level is difficult or impossible for the
consumers to ascertain. These are called “credence” goods because customers take it on faith (credere in
Latin = to believe) that the suppliers are honest and reliable and that they would give them what they need
and no more, no less. Credence characteristics are those product features that buyers normally evaluate
indirectly by referring to the seller’s credentials (e.g., brand equity, company reputation, and
manufacturer or product certification). In credence goods, therefore, buyers’ decision making is
dominated by concerns about credentials of seller/manufacturer or service provider. A major area of
communications in marketing relates to signaling unobservable quality of products and services via
advertising and promotions.

Quality signals can be transmitted in many forms, including brand name, price, warranty, and
advertising expenditures. The traditional view on price-quality signaling assumed that cognitively lazy
customers used cue signals (especially, price and brand name) as shortcuts or surrogates for assessing
quality. Currently, however, quality-sensitive, high-tech-sensitive, and well-informed consumers are
assumed “rational.” That is, they expect a firm to honor the implicit commitment conveyed through a
signal; if they fail to do so, then as rational consumers, they will not repurchase the product or service
(Kirmani & Rao, 2000). Under both views, BSIA reduction would empower buyers to assess quality
better via price and brand name signals. Additionally, under the second view, high-tech quality sensitive
buyers assume that marketers reduce BSIA of high-tech products and knowledge-intensive services via
signaling through premium prices, brand name, trademarks, and attractive warranties or guarantees.
Sellers of low-quality products using high-quality signals such as brand names and warranties will suffer
when consumers discovering low quality will claim warranties and refrain from repeat buying such
products (Kirmani & Rao, 2000).

The concept of IA is primarily based on the intangibility of products. As an initial rule: the more
intangible the firm’s outputs, their attributes and features, the greater the potential for BSIA (Norman,
1986). From this intangibility perspective, BSIA, par excellence, characterizes the world of aggressive
promotional marketing, deceptive advertising, creative accounting practices, and insider trading
irregularities.

Tangible products, however, despite their visibility, tactility, and physicality, can also have intangible
and, therefore, IA aspects. The more unobservable attributes (e.g., quality, brand equity) certain physical
products (e.g., computers, cars, DVD systems, and iPods) have, their manufacturers and sellers,

17
presumably, have great informational advantages. Product complexity, however, may often be irrelevant
as long as it produces the output that it is meant to produce. For instance, regardless of the complexity of
products such as aircrafts, computers, and cell phones, what matters is that prospective consumers
perceive they are safe, efficient, and cost effective. As long as these features are testable, verifiable, and
comparable across competing products, consumers can make informed judgments about their quality, and
hence, the scope of IA is reduced.

Furthermore, even though the outputs of manufacturing firms may have some intangible aspects (e.g.,
brand value, company reputation, psychological benefits of owning the products, and total customer
experience), yet their core outputs are visible, physical, testable, and hence tangibly comparable with
competing brands. Services are intangible and therefore require direct interaction between buyers and
sellers (Shostack, 1987). Furthermore, buyers may not be able to assess quality of services even after use,
and thus, they are prone to buyer–seller information disparities (Nayyar, 1990; Nayyar & Templeton,
1994).

Moreover, certain service industries (e.g., legal, medical, consulting) are both intangible and opaque,
with often chaotic characters (e.g., low security, low privacy, hacking, corporate fraud) that they generate
much IA. Under such circumstances, BSIA may be so high that customers will find it difficult to compare
competing services to determine their real benefits (Lowendahl, 2000) and to make accurate cost/quality
comparisons (Nayyar & Templeton, 1994). Strangely, this phenomenon can also reduce the ability of a
firm in differentiating its expert services from those of competitors (Mills, 1986) and thus not provide
competitive advantage.

BSIA is especially common among environments of service firms. For example, in knowledge-
intensive industries such as professional services (e.g., legal, health care, securities trading), BSIA is high
and customers and clients may not obtain accurate assessment of service quality and expertise, thereby
reducing their ability to make informed comparative judgments on competing services (Nayyar, 1990,
1993). Buyers may perceive similar levels of difficulty, especially when, in fact, quality differences
between service firms do exist (Nayyar & Templeton, 1994). Furthermore, for service providers, a mere
possessing of valuable, inimitable, and rare resources may not generate sustainable competitive
advantage, as the high IA environments may disable prospective customers from perceiving and
appraising those resources (Skaggs & Snow, 2004).

Summarizing our discussions thus far, we notice that some industries are low knowledge intensive
and others are high knowledge intensive. The former involve low levels of critical information, whereas
the latter involve high levels of critical information in buyer–seller interactions. Each of these industries
involves both tangible or intangible products and services. Among the tangible or intangible products and
services, there are areas where buyers may have more information than sellers, whereas in the highly
advanced domains of the same areas, sellers may have more critical information than buyers.
Accordingly, Table 1.4 is a 2 × 2 × 2 characterization of BSIA market domain as a potential source of
distributive injustice. Each cell includes a suggestive list of industries, areas in which consumers possess
more information than sellers do, and advance areas in which sellers command more critical information
than buyers do.
[Table 1.4 about here]

Concluding Remarks: Managerial Implications

Drawing on the resource-based view and theory from the organizational learning and information-
processing literatures, Hult, Ketchen and Arrfelt (2007) examined the influence of a culture of
competitiveness and knowledge development on supply chain performance in varied market turbulence

18
conditions. They found that synergies exist between a culture of competitiveness and knowledge
development: their interaction has a positive association with performance. In addition, based on
behavioral and contingency theories, they found that market turbulence moderates these relationships,
having a positive influence on the knowledge development-performance link and a negative influence on
the culture of competitiveness-performance link. Managers who are confident about the level of market
turbulence they will face can use this sense to decide whether to emphasize developing either a culture of
competitiveness or knowledge development in their supply chains. For those firms whose managers are
unlikely to be able to predict the degree of turbulence they will face over time, a focus on both a culture
of competitiveness and knowledge development is critical to ensuring success.

Market Turbulence as a Source of Corporate Growth

The tapestry of human behavior in the marketplace today is so turbulent, unpredictable, and chaotic,
yet so diverse, rich and global that it presents a rare ethical and moral opportunity and challenge to
corporate executive leadership to out-behave competition and create enduring value. In this process, lie
our greatness, success and our future. This is corporate ethics for corporate advantage. It is about HOW
of doing business executive leadership – the economic, social, ethical, moral and spiritual values we bring
with our business venture - and how thereby we impact the world. It targets moral reawakening among
business executives challenging them with moral issues/dilemma identification, ethical and moral
reasoning, ethical and moral deliberation, ethical and moral judgment, and ethical and moral justification
of business planning, decisions, actions and their consequences.

As understood and espoused throughout this book, we study corporate ethics and morals as lived,
experienced and shared dynamic systems of socially accepted, morally universal, values and principles,
standards and rules that can spiritually empower our life and society, our markets and our world. While
ethics deals with shared social values, and business ethics studies lived and shared values in buyer-seller
exchanges, corporate executive ethics centers on values and principles that power corporate decisions and
choices, strategies and implementation processes that have corporate-wide consequences, and industry-
nation-wide ramifications. Accordingly, this book explores and analyzes corporate decisions and choices,
especially in the context of current turbulent markets ridden with risk, uncertainty, chaos and ambiguity,
which when infested with buyer-seller information asymmetries, lead to corporate fraud, corruption, and
bribery and money-laundering.

Such socially violent market conditions constantly challenge corporate executives and business
practitioners, academicians and students of business today and this Book provides a systematic approach
to this challenge. It trains and empowers them to brave this turbulent yet opportunity-laden world with
sound moral principles, standards and rules drawn from major ethical theories of deontology, teleology,
distributive justice, corrective justice, ethics of human dignity, compassion, virtue, trust, critical thinking,
rights and duties, moral reasoning, judgment and justification, and ethics of corporate moral and social
responsibility.

Corporates these days lay major emphasis on corporate sustainability practices and reporting. They
tend to derive competitive advantage from these practices which would help them in gaining profitability
while they are helping society. If we take it one level above, countries as a whole are moving leaps and
bounds in the direction of environmental sustainability. Take, for example, the case of Germany.
Germany imports about two thirds of its energy from across the globe. Renewables and energy efficiency
help reduce imports significantly, thereby increasing Germany’s energy security. The energy transition
boosts green innovations, creates jobs, and helps Germany position itself as an exporter of green
technologies.

19
 For instance, in Germany, hundreds of energy cooperatives have come about - citizens come together
to collectively invest in energy renewables, increasingly, in energy efficiency. In addition to numerous
power plant projects, local power grids are also purchased from large grid operators so that communities
can have more control of their own grids. German regions and municipalities are discovering the
economic opportunities in renewables and energy efficiency, especially for communities that produce
more energy than they consume over a year.

Major Ethical Concerns

1. If current market turbulence is man-made, then is it ethical or unethical in origin, and why?
2. If current market turbulence is man-made, then is it moral or immoral in origin, and why?
3. When is market turbulence natural or driven by objective economic factors, and hence, good for
society and business? Explain.
4. As a corporate executive how can you combat market turbulence to save your company, and why?
5. On the contrary, is market turbulence good, and as a corporate executive how can you capitalize
market turbulence for the good of your company, and why?
6. How can state and national governments regulate or tame market turbulence?
7. How can international agencies (e.g., IBRD, WTO, UNCTAD, and UNIDO) control market
turbulence?
8. When can market turbulence be banned, and under what regulatory form, and why?

20
 Table 1.1: Tracking Emerging Economies, their Market Turbulence and
Growth Opportunity
Emerging Related Industries and Business Industry Geo-Political Market Business Growth
Economies Landscape Turbulence Opportunity

Agriculture Hunting, farming, mud and brick housing, timber Over-hunting; overgrazing, over- Reforestation; irrigation;
and roofing, boats and fishing, poultry, cattle, farming; over-fishing; land/soil development;
livestock, milk and dairy products, slaughter houses deforestation, drug and commodity river/water development;
and meats, , fruits and vegetables, flowers, gardens cartels; mafia; droughts and animal husbandry; dairy
and orchards, cotton and textiles, clothing and famine; river dams and villages cooperatives; credit cooperative
apparel, silk and linens, precious metals and jewelry. displacement; various protective unions; rural and urban
legislations education
Infra- Steam engines, railroads, motor roads, cement and Steam engine revolution (1784); Railroad networks, high speed
reinforced concrete for road and bridge Invention of electricity (1870); roads networks, shipping and
structure construction; shipping and docks; paper and Industrial revolution; harbor development;
printing, land mining, deep sea and deep land Coal-fired engine revolution; Engineering education in
mining, drilling and boring wells, offshore drilling; locomotive demand; manufacturing, civil
schools and colleges; land grant universities. over-mining; land-degradation; construction, metallurgy,
mining and minerals legislations. mining,
Manufac- Energy, oil and gas, electricity and electricity grids, Demand exceeds supply for energy, Energy, oil and gas pipelines;
cement, concrete, steel long products for commercial oil and gas, electricity, steel, autos, electricity grids and
turing construction, heavy earth movers, boats, trawlers, commercial vehicles, airports and switchyards; mechanization of
cargo and passenger ships, steel and steel products, aircraft, rail engines, cars, railway agriculture; Engineering
autos, buses, trucks, airports, aircraft, fertilizers, lines and railway stations; price education in automotive,
telegraph, typewriters, semiconductors, processors, and wage inflation; automation aeronautics, electronics, …
computers and mechanization of labor.
Knowledge Education via kindergartens, middle and high Centrally administered Mass education; control
schools, colleges and universities, curricula and universities, aided faculty, boards; degrees, teachers and
pedagogy, courses and disciplines, philosophy, controlling degrees via curricula, school discipline. Reward-
theology, sciences; specializations and departments, examinations and evaluations punishment based high
certificates, diplomas and degrees. extrinsic motivation.
Services Various market outlets: banks and banking, Market regulations; banking Courses in banking, insurance
insurance, healthcare, hospitals, hotels, motels, regulation; healthcare regulation; management, hotel
restaurants, processed foods, fast foods, storage, processed foods regulations; management, hospitality,
warehouses, travel, tourism, worship houses organized religions; law & order. theology
Information Information software technology (IT): storage, World information technology MIS, MCA, informatics,
retrieval. processing and distribution of data, facts, (1969); commercialization of the bioinformatics, Data Analytics,
figures, inferences, statistics, vital statistics, census, Internet (1993); data privacy Search Engines (Google);
news, media, telecommunication industries, mobile regulation, social security and pan centralization of IT-based
phones, smart phones, cards; new lifestyles, changes in distributed social welfare;
demographics, ergo-graphics, …
Online Internet, www, e-commerce, e-business, e- No strong regulation on online Online marketing, e-marketing,
marketing, e-advertising, e-recruiting, e-supplies businesses, online taxes, e-advertising, e-governance, e-
Businesses chain management, e-computing, e-companies transparency, cyber-security, auctions, e-courses, e-schools, e-
amazon.com, eBay; e-books, e-music, e-albums, e- hacking and counterfeiting, colleges, e-universities; e-
movies, e-films, e-banks, e-payments, smart cities, merchant and consumer cyber courses (Coursera, MOOCs)
… fraud
Healthcare Medical biometrics, diagnostic bio tests, prosthesis, No strong regulation to curb High quality medical schools
chemotherapy, implant radiation, emergency medical inflation, over-testing, and research, post graduate
Engineering medicine, ultrasound, MRI, FMRI, laser technology, expensive treatments to prolong courses; medical diagnostics
stents, pace makers, transplants, computerized life, pain management, euthanasia, and surgery products and
cancer and Alzheimer diagnostics, e-medicine, e- abortion; lack of national medical services; medical insurance
diagnostics, artificial intelligence plans that all can afford. services, medical tourism.
Entertain- Cricket Sports (IPL, 20 or 50 overs), football (ISL), Sports Club scandals and Major sports leagues, IPL, 20-
golf, basketball, hockey, tennis, squash, kabadi for regulations and vigilance; game- 20; ISL; TV talks shows; soap
ment men and women, movies, social media, Facebook, fixing; ball tampering; anabolic operas; comedy, drama,
What’sApp, comedy, TV, radio, … steroid-based pumping; theatre, movie houses, films;
dance schools, courses in sports
marketing, social media, …
Sustai- Carbon neutralizing, carbon-emissions reduction, Challenging regulation on Courses & schools on ecology,
pollution elimination, ecological friendly products, pollution controls, carbon sustainability, alternative
nability conservation, renewable energies, alternative energy emissions, ecology standards, energy sources such as solar
sources, satellite debris cleansing, planetary excessive use of non-renewable and wind energy; responsible
ecological ethics, cosmos-centric sustainability, energies; encouraging alternative production-distribution-
cosmic moral responsibility, partnership with nature energy sources consumption, CSR, responsible
luxury.

21
 Table 1.2: Characterizing the Structure of Market Turbulence
Do you know the Do you know
controllable (X) and The Relationships between X and Y?
Uncontrollable
Variables (Y) of
Yes No
your problem or
your firm?
The Domain of Market The Domain of Market
Certainty: Risk:
Simple Problems Complex Problems:
Yes
Agricultural economy Services economy
Manufacturing economy Information economy
Energy economy Globalization economy
Transportation economy Digitization economy

The Domain of Market The Domain of Market

Uncertainty;
Unstructured Problems:
No
Knowledge and skills economy
Healthcare economy
Entertainment economy
Happiness economy
Chaos & Ambiguity:
Wicked Problems:
Political economy
Monetary and fiscal economies
Defense economy
Terrorist economy
War economy

22
 Table 1.3: Sources of Local, National and Global Spread of Market
Turbulence
Domain of Sources of Market Turbulence
Market Objective Economic
Turbulence Factors
Unfulfilled human needs
Poverty/disease/illiteracy
Wasteful products and distribution
Local/state ecology damages
Local/State taxes
Shortages (e.g., drought-based)
Competition
Group/Local/
Labor Problems
State Gangs/Slums/Ethnic Ghettos
Under-development (rural)
Over-regulation, tolls, licenses
Overpopulation and control policies
Overcrowded cities and roads
Lack of healthcare & insurance
Economic and geographic crises
National Fiscal Policies
National Money-supply Policies
Under-education & unemployment
Trade Laws & Policies
FDI Policies
National Inflation/deflation
Regulation/deregulation
National mining/river rights
National Property rights
Multi-party politics
Uninformed/illiterate democracy
Weak International Institutions (e.g.,
UNO, IBRD, IMF, WHO, …);
International Trade Pacts (WTO)
Globalization factors and policies
Currency Fluctuations/ For-Ex crises
International/ Capital markets and policies
Commodity cartels
Global
Economic Immigrants
Student international immigration
Technology power dominance
Defense production
Nuclear energy production
Global warming & climate change
Objective/Subjective
Factors-Mix
Unfulfilled human wants
Welfare/education/housing problems
Force-changed consumer lifestyles
Local/state sustainability problems
Local/state tax avoidance loopholes
Under-supply of groceries/apparel
Cut-throat competition
Labor Unions
Ghost cities/ethnic enclaves
Over-development (urban)
Ambiguous laws and licenses
Over-population growth rates
Overcrowded houses and vehicles
Medical/healthcare inflation
Economic systems-breakdown
National Fiscal ambiguity
De-Monetization
National Unemployment problems
National Trade Deficits
NRI/FII manipulations
Stag-inflation, price-inflation
Over-regulation/deregulation
Inter-state river/mining dams
Privatization or over-nationalization
Political alliances and conflict
Under-informed democracy
Destabilized international structures
and institutions’
WTO/NAFTA/LAFTA ambiguity
Global outsourcing & mobility
Currency depreciation & shortages
Capital Markets forced constraints
Oil and drug cartels
Civil war immigrants/genocide
Student talent and brain drain
Technology/market superpowers
War production/economy
Nuclear weapons-proliferation
Global/cosmic unsustainability
23
Man-Made Subjective
Factors
Unfulfilled human desires/dreams
Increasing Social inequality
Wasteful conspicuous consumption
Local/state eco-degradation
Local/state tax evasion
Artificial market shortages
Market-entry barriers
Labor unrest, boycott, strikes
Gangsters, fundamentalism, Xenophobia
Anti-development (vote banks)
Fraud, corruption, bribery
Uncontrolled overpopulation
Overcrowded traffic and road-accidents
Health-abuse, eating/drinking addictions
Economic-geographic man-made crises
National Fiscal abuse/avoidance
Black Money & money-laundering
National school and college dropouts
National Excessive imports
Underground capital economy
Labor and wage-inflation
Overregulation non-compliance
National/state/local mining activists
Opposing Doctrine of Eminent Domain
Political mercenary crossovers
Paid or Moghul media interference
Fraudulent and corrupt international
institutional hierarchies;
WTO/NAFTA/LAFTA Violations
Globalization abuse and wars
Currency manipulation & hoarding
International capital market abuses
Drug, Oil and OPEC Mafia
Religious persecution immigrants
Student immigrant visa/jobs abuse
Technology/market embargoes/enclaves
Preemptive wars and destruction
Nuclear wars and global threats
Global/cosmic destabilizers
 Table 1.4: Buyer–Seller Information Asymmetry (BSIA)
[Source: Mascarenhas, Kesavan, and Bernacchi 2008, p. 72]

BSIA Nature of Buyers have Much More Sellers have More Critical
Situations Products/ Critical Information than Information than Buyers
Services Sellers
Home-grown products sold Commercial canned and processed
foods
Home-based services (e.g., Commercial fast foods and
Tangibles meals, sewing, laundry, mowing) restaurants
sold Formal and designer apparel
Garage or block sale Commercial dry cleaning and
winterization
Telemarketing and catalog-based
Low knowledge– buying
intensive
industries Domestic mail and package International mail and package
delivery delivery
Local newspapers National and international media
Local cultural traditions and Seasonal fashions and trendy goods
Intangibles fashion goods
Consumer feedback and Producer/distributor redress
complaints
Consumer social ecology Industrial ecology and EPA systems

Homemade brews and wines Commercial beer, wines, and spirits

Routine car maintenance Auto mechanics and technician
services services
Tangibles Consumer home remedies Commercial drugs and medicine
Owner selling home/estate Commercial homes and estates
Donating or selling one’s organs Commercial transplant organs and
High– prostheses
knowledge–
intensive Local gangs and gangsterism National and global terrorist systems
industries Consumer theft and fraud Merchant and corporate fraud
Home-based safety and Legal liability recovery services
Intangibles protection
Home-based medical diagnostics Hospital and medical diagnostics care
Home school educational Community colleges and universities
services

NOTE: EPA = Environmental Protection Agency

End Notes
i
Management literature describes turbulence as competitive intensity (Cui, Griffith, & Cavusgil, 2005; Hadjikhani & Johanson,
1996), high technology markets (Weiss & Heide, 1993), environmental uncertainty (DeSarbo, Di Benedetto, Song, & Sinha,
2005; Duncan, 1972), environmental changes (Kobrin, 1980), political instability (Kobrin, 1978), environmental jolts (Meyer,
1982), state-gate controls (Sethi & Iqbal, 2008), and technology- and market- based breakthrough innovations (Zhou, Yim, & Tse
2005).

ii
Various studies have linked environmental turbulence (normally distinguished as technological turbulence and/or market
turbulence), with market orientation (Atuahene-Gima, 1996; Jaworski, & Kohli, 1993; Kumar, Jones, Venkatesan, & Leone,
2011; Slater & Narver, 1994; Powpaka, 1998), product quality orientation (Lin & Germain, 2003), market responsiveness (Grein,
Craig, & Takada, 2001; Kobrin, 1982; Lee, 2010; Lee, Chen, & Lu, 2009; Luo, 2001), absorptive capacities (Lichtenthaler, 2009;

24
Zahra & George, 2002), organizational learning (March, 1991), organizational memory (Moorman & Miner, 1997), new product
introductions (Lee & Chen, 2009); new product outcomes (Lee, Chen, Kim, & Johnson, 2008), supply chain management (Hult,
Ketchen, & Arrfelt, 2007), risk management (Kritzman, 2010), knowledge development and cycle time performance (Hult,
Kretchen and Arrfelt 2007), and ethical compliance (Chonko, Wortruba, & Loe, 2003; Morris et al., 1996).

iii
References on Chinese Invasion of global markets may be found in: CIA, 2017, retrieved from:
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html on April 10, 2017; World Bank, 2017, retrieved from
https://data.worldbank.org/country/china; Retrieved from https://en.wikipedia.org/wiki/When_China_Rules_the_World in April,
2017; Other sources are: Culler, Jonathan (1981). The Pursuit of Signs: Semiotics, Literature, Deconstruction; Ansen, Dibell
(1999). Plot. Elements of Fiction Writing. Writer's Digest Books; The rise of China, Martin Jacques, TED, 2010; Hartcher, Peter
(2017, April 4). China brought it’s dominance…. Sydney Morning Herald.

iv
The origin of EU can be traced back to the formation of European Coal and Steel Community as a result of Treaty of Paris
(1951) and European Economic Community by Treaty of Rome (1957). These steps were followed to give shape to a ‘European
brotherhood’ as an aftermath of World War II to ensure a stronger, united front in case the future happened to give them a sense
of déjà vu. Over time EU became the central body to preside over not just economic but legal and other matters of the member
states and evolved into a center of power. The EU now stands as an economic and political partnership of 28 European countries.
It follows a single market strategy where the member states allow goods and people to move around as if it were a single entity. It
has its own currency – the euro, its own parliament and now sets regulations for an array of issues. Article 50, Treaty of Lisbon,
was drawn up as a part of the Treaty of Lisbon in 2009 after all the member states of the EU signed the agreement. This article is
the basis of the mechanism employed if a country decides to leave the EU. According to this article, the member state which
wants to withdraw its membership must notify the European Council and negotiate its terms of withdrawal, the time available for
which is a maximum of three years.

v For additional information on international asylum immigration crisis, see Dixit, Neha (2015, April 25-May 1). Europe’s Boat
People. The Economist, 9, 18-21; Cunningham, Finian (2015, April 24). EU Allies Pay for America’s Global Conflict and
Refugees. Global Truth, Saturday, May 9, 2015; “The Hard Journey: Europe’s Plan to Cope with Maritime refugees needs to go
further,” (2015, May 16), The Economist, 10; “Thanks to a Crackdown in Thailand, Thousands of Boat People are left out at
Sea,” (2015, May 16), The Economist, 19-20; “Rohingyas: Apartheid on the Andaman Sea,” (2015, June 13), The Economist, 14;
“The most persecuted People on Earth?” (2015, June 13), The Economist, 24; Cook, Martin (1996). Immigration and Ethics.
Markkula Center for Applied Ethics, 7(2); Bhutani, Suruchi. The Ethics of Immigration. Markkula Center for Applied Ethics;
Morton, Dr. Adam (2005-06). The Ethics of Immigration Law: Are Controls on Who Can Live & Work in Canada Justifiable?
Philosophers' Café.

vi
G20 summit: Trump-Putin meeting, a matter of life and death for the people of Syria. (2017, 7 July), 10:34 UTC, Syria,
Amnesty International. Retrieved from https://www.amnesty.org.nz/g20-summit-trump-putin-meeting-matter-life-and-death-
people-syria

vii
Demonetisation impact: AIMO report says note ban caused 35% job loss, 50% dip in revenue. (2017, January 9). Financial
Express, New Delhi. Retrieved from http://www.financialexpress.com/india-news/demonetisation-impact-aimo-report-says-note-
ban-caused-35-job-loss-50-dip-in-revenue/501424/

25