PurposeGiven system‐wide lapses in moral decision making in large US corporations and the inherited corruption from formerly planned economies, the development of moral reasoning is an important issue for business educators in the USA and Latvia. The purpose of this paper is to present a comparison of Latvian and US business persons.Design/methodology/approachKohlberg's et al., theory of cognitive moral development (CMD), as operationalized by Rest as framework to study the antecedents of moral judgment in both lands. Survey data from 340 employed MBA students as a proxy for current and future business leaders are used. A total of 18 scenarios are reduced to four unique components, which are regressed on measures of CMD, Country of Respondent, and Moral Philosophy to test three hypotheses. Gender and age are added as controls.FindingsCMD and Country of Respondent are strongly associated with increased moral judgment, while Moral Philosophy is less influential. In addition, the positive functional relationship between CMD and moral judgment exists in both countries but at lesser absolute values in Latvia. Findings also suggest that the efficacy of the independent variables varies with the issues at hand. Interestingly, moral dilemmas concerned with marketing strategies appear to be immune from moral reasoning. This indirectly gives support to Jones' concept of moral intensity and future research may wish to continue this line of inquiry as well as expand the comparison to other European Union countries.Originality/valueThe paper is the first to use the defining issues test to study levels of CMD in the Latvian business community.
Prior to the establishment of the Latvian
The global trade scenario is fast changing with complexities involving multi-nationals and value chains. Likewise, EU Member States trade has been more intra-EU than extra-EU; however, the Member States have now started looking at extra-EU trade partners. A study of assessment of Latvia's trade potential with EU Member States shows that it has reached high levels of trade with its neighbouring countries and needs to look beyond its present trade partners. Utilising basic gravity theory this article tries to explain the possibility of creation of trade by Latvia as a Member State of the EU, with special focus on the participation of Latvia in Indo-EU Value Chains (Indo-EUVCs) and the possible role Latvia can play in future.
This article provides an overview of Latvian-Polish economic relations in the interwar period. Polish-Latvian relations date back as far as the 16 th century when the last Grand Master of the Livonian Order and the archbishop of Riga requested the assistance of King Sigismund August of Poland to face a possible invasion by the Muscovite tsar. In the interwar period, economic relations between Latvia and Poland were mainly confined to foreign trade, although there were some investments in Latvia from Poland as well. Although Latvia declared its independence in 1918 (at the same time as the rebirth of Poland), trade with Poland did not commence until 1921 after the end of the Latvian War of Independence. It ended with the outbreak of WWII in 1939. Latvia's foreign trade in relation to Poland was more or less regulated by the 1927 Provisional Commercial Agreement, the 1929 Commercial and Navigation treaty, as well as the 1938 Protocol of Tariff with Signature Protocol. Latvia's main imports from Poland in the interwar period were coal and coke, textiles and textile products, metals and metal products, cereals (barley and rye), and flax seeds, whilst Latvia's main exports to Poland were rubber products, paper and paper products, linoleum, fish and fish products, paint and paint products. In general, trade and thus economic relations were of marginal significance to both countries in the interwar period. On the other hand, Latvia had fairly intensive relations with Poland in the political, social and cultural spheres. This was mainly due to the fact of geographic propinquity, the large Polish minority in Latvia and differences over border regions.
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