McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-1 Software Piracy Losses by Region 2000 Figure 2.3

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-2 Product Safety and Product Liability Product Safety: Safety standards to which a product must adhere.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-3 Product Safety and Product Liability Product Safety: Safety standards to which a product must adhere. Product Liability: Civil and criminal penalties if standards are not met.

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-4 Product Standards and Ethical Dilemmas Strong Product Standards Weak Product Standards

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-5 Contracts Common Law

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-6 Contracts Common Law Evolved in England

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-7 Contracts Common Law Evolved in England Based on: Tradition Precedent Custom

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-8 Contracts Common Law Evolved in England Based on: Tradition Precedent Custom United States

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-9 Contracts Common Law Evolved in England Based on: Tradition Precedent Custom United States Contracts tend to be long

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Contracts Civil Law ‘Code Napoleon’ Detailed set of laws organized into ‘Codes’. Europe Russia Japan 80 countries Short contracts

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Differences in Economic Development Gross National Product (GNP) Common yardstick for measuring economic activity. Measures total value of goods and services produced annually. Doesn’t consider the differences in costs of living. Purchasing Power Parity. Uses U.S. cost of living for basis of adjustment among countries. Both give a static picture of development

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved PPP Index and GNP Data for Selected Countries 2000 Table 2.1

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Amartya Sen Measure development by capabilities and opportunities people enjoy. Requires removal of: Poverty Tyranny Poor economic opportunities Systemic social deprivation Neglect of public facilities Intolerance of repressive states

McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Amartya Sen U.N.’s Human Development Index Based on: Life expectancy at birth Educational attainment Whether average income is sufficient