Fredrick Taylor was an American mechanical engineer born in 1856 who is considered the father of scientific management. He developed principles of scientific management that focused on improving industrial efficiency through time-and-motion studies and breaking jobs down into small, repetitive tasks. His four main principles included replacing rule-of-thumb work methods with scientific study, scientifically selecting and training employees, providing detailed instructions for each task, and dividing work equally between managers and workers. Taylor's principles greatly influenced management practices and focused on maximizing productivity. His book The Principles of Scientific Management summarized his efficiency techniques and remains influential today.

1. FREDRICK TAYLOR 2
Fredrick Taylor
Student’s Name
University Affiliation
Introduction
Fredrick Taylor was born in the year 1856. He was born to a
Quaker family located in Germantown, Philadelphia in
Pennsylvania. Taylor’s father was a top educated lawyer who
built his wealth on mortgages. His mother was an ardent
abolitionist as well as a coworker with Lucretia Mott. Taylor
took his early education in France and Germany and later on
went to Harvard University for his Degree in Law. He was a
respected mechanical engineer in his times. In history, Taylor
Fredrick was the only person who deemed work deserving of the
systematic observation as well as study. It later on led to the
development of various technological aspects in the end.
Fredrick Winslow Taylor was an American mechanical
engineer who came up with the idea of improving the industrial

2. efficiency. Fredrick was among the first management
consultants in his times. He was the first inventors who came up
with the idea of progressive access to the operations
management at the first times (Smith, 2009). He was also among
the top intellectuals leaders of the Efficiency Movement as well
as the ideas. It broadly led to the concealment and high
influential on the progressive era. Taylor later on summed up all
his efficiency techniques in the book he wrote. Taylor wrote the
book, Principles of Scientific Management.
The scientific management of Fredrick Taylor consisted of
four major principles. These principles were important as they
provided the right tips of managing the business ethics in the
company. It is very important to apply these rules in the
company since they gives a direct approach of managing the
ethics in business management. The principles also shape the
guidelines of creating the best management tips in modern
business environment.
The first principle is that the rule-of-thumb work methods
based on the scientific study of the most important task. It is
important, as this rule guides the managers on how to create a
good relationship in managing the issues of the business. It acts
as a guide to help in achieving the long-term effects in business
management. The second principle of Taylor is on scientific
selecting, training, and developing each employee in the
organization rather than leaving them to train on themselves
(Smith, 2009). For managers in modern business, it is important
to include this principle in managing the business affairs. It
helps to guide them on how to help the employees achieve the
set objectives in the organization. It guides the employees on
best tips of achieving the long-term benefits in the end. The
managers understands the best ways to manage to select, train
and develop each employee in the organization for the mutual
benefit of developing the entire organization.
The third principle is providing a detailed instruction as
well as supervision of each worker in line with the performance
of each worker’s discrete task. It hence helps to achieve the best

3. results since the instructions acts as a guide towards improving
the image of a company. The managers learn from this principle
and understand the necessary rules of carrying out business.
They should give the employees all necessary instructions for
performing various tasks in the business. The managers must
provide these detailed instructions to avoid cases where
employees provide poor quality work. The final principle by
Taylor is dividing the work equality between the managers and
workers. The purpose of this is to help managers apply
scientific management principles to the entire planning of the
work. It also ensures that the workers perform the tasks in the
right way as per the expectations of the company (Reynolds,
2003). The managers should not overwork the employees in the
expense of earning the high profit margin. It also requires
success in the necessary measures of providing the right
instructions. If employees work as per their capacity, then there
are chances of achieving success in the company.
Fredrick Taylor has influenced the practice of management
in different ways. The managers have developed new
mechanisms in business. The business aspects are necessary as
they help to achieve the best performance in the business. It is
important for managers to exercise the efforts of Taylor in the
end. It helps to manage the best practices in business to help in
achieving the management efforts. In the end, it helps to create
a good practice in business to help in realization of the set goals
in the business. The managers who practice these management
tips by Fredrick Taylor helps the company they manage have
improved levels of competition in the market of operations. The
efforts of Fredrick Taylor have improved the area of
management in modern business. The managers have learnt new
styles of managing the people as well as operations of the
business in order to realize the set objectives in the business.
Achieving of business goals are very important at the end,
since, there are better alternatives of managing the business
activities.
The principles of Taylor are widely practiced nowadays.

4. The four important principles of Fredrick Taylor have improved
the operations of business. There is an effectively efficient
operational process between the employer and employee
(Redlich, 2010). The level of teamwork has also improved due
to the application of the second principle of Fredrick Taylor.
Fredrick is the key person who has shaped and improved the
relationship between employees and employers in any given
organization. The organizational attributes have become better
since Taylor provides the best ways of achieving the set goals
and objectives in the business.
The scientific management gave many important
contributions towards the achievement of the entire management
practice in the modern businesses. These contributions have
improved the accuracy of managing the business affairs in the
company. These contributions guides the efforts of
management. The management practices introduced by Taylor
have shaped the modern management efforts of most managers.
The entire efforts of Taylor introduced the systematic selection
and training procedures for the employees (Guthrie, 2010). It
helps the managers to learn how best they can select the best
employees to fill a certain vacancy. The selection process is
very important as it guides the employees on how they can
achieve success in the end. It is very important to carry out the
selection process with a lot of keenness since it determines the
type of employees to work for the company. The selection
process is vital for the success of the company hence requires
high accuracy in the implementation process.
The management practices by Fredrick Taylor are
applicable in modern businesses helps in the training process of
the employees. The managers learn about new tips of managing
the training processes in the business. It helps to train the
employees on bets ways to increase their accuracy in the
performing their tasks. Fredrick guides the managers on
different ways of training the employees. It is necessary to
achieve the set objectives through training the employees in a
company. This helps to increase the workplace efficiency in the

5. company. The management practices by Fredrick Taylor helps
can increase the overall efficiency of the company as well as
encouraging the idea of systematic organizational design
(Guthrie, 2010). The efforts of Taylor helps the managers
separate the manual work from mental work. It hence helps in
modern productivity enhancement practices through the process
of incorporating the workers idea in the busines. The scientific
management process by Taylor has improved the level of
decision-making by the managers. In the end, there are best
management tips by the managers to help in achieving the set
goals in entire business.
Conclusion
As seen in the research paper, it is evident that Fredrick Taylor
have influenced the management today. The efforts of Taylor
are evident in most cases for modern business. These efforts of
Taylor have helped achieve the set business goals through
proper management of business operations. Therefore,
management is better with the application of Fredrick Taylor.
The best managerial tips increases the efficiency of the
managers in the end.
References
http://www.acu.edu/academics/library/reference/research/ethics.

6. html
Guthrie, D., & Durand, R. (2008). Social issues in the study of
management. European Management Review, 5, 3, 137-149.
Redlich, F. C., & Freedman, D. X. (2010). The theory and
practice of psychiatry: [by] Fredrick C. Redlich and Daniel X.
Freedman. New York: Basic Books.
Reynolds, G. W. (2003). Ethics in information technology.
Boston, Mass: Course Technology
Smith, G. R. T. (2009). The ethics of information technology
and business. Malden, MA: Blackwell Pub.
1. Host governments sometimes impose special requirements on
MNCs that want to acquire local firms. These requirements
include:
A. Retention of all employees of the target firm
B. structure the business to export the products produced
C. structure the business to avoid direct competition with local
businesses
D. all of the above
E. none of the above
2. A host government may offer incentives to MNCs that
consider direct foreign investment in its country. Incentives
may include all of the following, with the exception of:
A. reduced regulations
B. tax breaks on income earned in the host country
C. tax breaks on income remitted to home country
D. low-interest loans
E. none of the above
3. Letters of credit:
A. are issued by banks on behalf of the importer promising to
pay the exporter.
B. are issued by the importer promising to pay the exporter
C. are a substitute for short-term bank loans
D. provide benefits to the exporter, but not the importer

7. E. none of the above
4. A U.S. firm is considering investment in either Canada or
Mexico, but not both. It might select:
A. Canada, because the U.S. dollar is expected to depreciate
against the Canadian dollar
B. Mexico, because the peso is expected to depreciate against
the U.S. dollar
C. Mexico, because the U.S. dollar is expected to appreciate
against the peso
D. Canada, because the Canadian dollar is expected to
depreciate against the U.S. dollar
E. none of the above
5. MADCO, a U.S. company, exports to other countries. The
company sells its accounts receivable without recourse.
Factoring involves
A. purchase of accounts receivable by a factor
B. accounts payable financing
C. working capital financing
D. countertrade
E. none of the above
6. A MNC could do which of the following to make it desirable
to the host government:
A. use local employees for managerial positions
B. purchase supplies in the host country
C. Reinvest profits in the host country
D. All of the above
E. None of the above
7. A MNC might establish a manufacturing facility in a foreign
country because:
A. labor costs are lower
B. tax rates are lower
C. the host government offers incentives
D. expenses are lower
E. all of the above

8. 8. MNCs who want to retain liquidity may invest excess cash
in:
A. international equity markets
B. international bond markets
C. international medium-term debt markets
D. international money markets
E. all of the above
9. A method of payment that is an unconditional promise by
one party, instructing the buyer to pay the face amount upon
presentation is a:
A. banker's acceptance
B. trade acceptance
C. letter of credit
D. bill of lading
E. none of the above
10. Assume a Canadian firm initiates direct foreign investment
in the U.S. The Canadian dollar is expected to depreciate
against the U.S. dollar. The C$ dollar value of earnings remitted
to the parent Canadian company should:
A. decrease because the U.S. dollar will buy more Canadian
dollars
B. decrease because the U.S. dollar will buy fewer Canadian
dollars
C. increase because the U.S. dollar will buy more Canadian
dollars
D. increase because the U.S. dollar will buy fewer Canadian
dollars
E. none of the above
11. A banker's acceptance:
A. provides short-term financing for the importer, but is not
beneficial to the exporter
B. can be sold in the money market at a discount
C. can be sold in the money market at a premium
D. cannot be sold in the money market
E. none of the above
12. A company believes that interest rates will increase in the

9. near future and stay at higher levels. This company should
borrow at a:
A. floating rate, because it will result in lower financing costs
B. fixed rate, because it will result in lower financing costs
C. floating rate, because the rate may go down, but not up
D. fixed rate, because the rate can only increase after 2 years
E. none of the above
13. Should tax-related factors be considered in evaluating a
foreign target?
A. yes, different tax rates may increase after-tax earnings
B. no, corporate tax rates in the home country and the foreign
country are the same
C. no, foreign taxes can be deducted from home country taxes
D. yes, corporate tax rates in the home country are always
higher
E. none of the above
14. Counterpurchase:
A. is a form of barter
B. involves two separate transactions
C. always involves governments and MNCs
D. is not a form of countertrade
E. none of the above
15. MNCs sometimes measure country risk by assigning
weights to factors. Which of the following is correct:
A. weights should be equally allocated among factors
B. factors will be identical for all MNCs conducting business
in the same country
C. Factors for political and financial risk will be equally
weighed in the final analysis
D. weights should be assigned to factors for political and
financial risk according to their perceived importance.
E. none of the above
16. The Export-Import Bank of the U.S. offers various
programs, including:

10. A. medium-term guarantee program
B. bank insurance programs for exporters
C. export credit insurance program for exporters
D. working capital guarantee program
E. all of the above
17. U.S. MNC is considering investing in Portuguese securities.
The exchange rate is € = $1.33. If the euro depreciates, the
effective yield on the investment will be:
A. higher, because the euro will convert to fewer dollars
B. lower, because the euro will convert to fewer dollars
C. higher, because the dollar will convert to fewer euros
D. lower, because the dollar will convert to more euros
E. lower, because the dollar will convert to more euros
18. Spain and South Africa have very different economic
conditions. A MNC would reduce risk by:
A. operating in both countries
B. operating in Spain, but not South Africa
C. operating in South Africa, but not Spain
D. operating in neither country
E. none of the above
19. With consignments:
A. the exporter ships the goods to the importer along with the
title to the goods
B. The importer pays the exporter as soon as the goods are
received
C. The importer pays the exporter when the goods are sold
D. The exporter and importer assume equal risk
E. none of the above
20. MORIT, Inc., a U.S. corporation undertakes direct foreign
investment in Brazil. The Brazilian real is expected to
depreciate temporarily against the dollar. As a result, earnings
remitted to MORIT will convert to fewer dollars. For this
reason, MORIT may request the subsidiary to:
A. postpone remitting earnings until the dollar strengthens

11. B. postpone remitting earnings until the real strengthens
C. remit earnings right away before the dollar weakens
D. all of the above
E. none of the above
21. Which of the following is probably the most difficult for a
MNC to value?
A. international acquisition
B. international divestiture
C. international partial acquisition
D. newly privatized foreign business
E. none of the above
22. Which strategy is suggested when a company wants to to
reduce risk by diversifying internationally?
A. Establish subsidiaries in markets whose business cycles
differ from those where existing subsidiaries are based
B. Establish subsidiaries in markets that have relatively low
cost of labor or land
C. Establish subsidiaries in markets where the local currency is
weak but is expected to appreciate over time
D. Establish subsidiaries in markets whose business cycles are
the same as those where existing subsidiaries are based
E. None of the above
23. The Jackson Corporation, a U.S. firm, establishes a
subsidiary in a foreign country where it currently doesn't do any
business. The present value of cash flows from this subsidiary
to the parent is more sensitive to exchange rate movements
when:
A. the parent finances most of the investment
B. the parent finances the entire investment
C. the subsidiary finances the entire investment by local
borrowing
D. the subsidiary finances most of the investment by local
borrowing
E. none of the above

12. 24. MNCs may value the same foreign target company in
different ways because of:
A. Differences in tax rates
B. Differences in estimated exchange rates
C. Differences in required rates of return
D. All of the above
E. None of the above
25. Financial characteristics that should be considering in
evaluating country risk include:
A. interest rates
B. exchange rate
C. inflation
D. government fiscal policy
E. all of the above
26. The annual interest rate on the Canadian dollar is 9%. The
forecast of the Canadian dollar's value for the next year is
shown below. Calculate the effective financing rate for a U.S.
company. Show how you derive the answer.
Percentage Change
Probability
1.0%
15%
-1.5%
30%
-2.0%
55%
27. The annual interest rate on the Swiss franc is 4%. It is
expected to appreciate 3% over the next year. Calculate the
effective financing rate for a U.S. company. Show how you
derive the answer.
28. Tundra, Inc. plans to make an offer for a Chinese company.
The Chinese company has 50 million shares outstanding and
price per share is 3 yuan. The current spot exchange rate is $1 =

13. 6.27yuan and the estimated spot rate at the end of 6 months is
6.24. (1) Calculate the Chinese company's value in dollars based
on its stock price; and (2) Calculate the value in dollars if the
estimated spot rate at the end of 6 months is used? Show how
you derive answers.
29. Boxton, Inc. is considering a project with an estimated
return on 10%. Its capital structure consists of 60% debt and
40% equity. Its borrowing rate is 6% and cost of equity is 10%.
Its tax rate is 30%. (1) Calculate Boxton's weighted averaged
cost of capital; and (2) should Boxton undertake the project?
Why or why not?
30. Parvis, Inc., a U.S. Company is expecting cash flows in
Australian dollars of: A$1 million, AS1.5 million, and AS .5
million in years 1, 2, and 3, respectively. The forecasted
exchange rates are US$1.03 year 1, US$1.04 year 2, and
US$1.05 year 3. (1) Calculate the US dollar value of the cash
flows by year; and (2) the total cash flow for the 3 years. Show
how you derive answers.
31. Company X has a beta of .85, the risk-free rate of return is
1%, and the average return on the market is 9%. (1) Calculate
the required rate of return on Company X's stock. Show how
you derive the answer. (2) Does Company X's stock have
greater risk, the same risk, or less risk than the average stock?
Explain
32. The 1-year interest rate is 7% in the U.S. and 3% in Japan.
How much would the yen have to appreciate for a U.S. investor
to get the same return on both U.S. and Japanese investments?
Show you derive the answer.
33. MLC Audio has decided to issue 3-year bonds denominated
in 10 million Singapore dollars. The bonds have a coupon rate
of 10%. The Singapore dollar is expected to appreciate from its

14. current level of $.82 to $.80, $.79, and $.78 in years 1, 2, and 3,
respectively. Calculate the financing cost (in percent) of these
bonds. Show how you derive the answer.
34. Marcus, Inc., a U.S. company takes out a 1-year loan in
Germany. The U.S. 1-year interest rate is 5%, and the German
1-year interest rate is 6%. The spot rate of the euro is $1.33 and
the 1-year forward rate is $1.29. Calculate the effective
financing rate for Marcus. Show how you derive the answer.
35. A U.S. company is considering a project in Mexico.
Estimated cash flows are 10 million Mexican pesos the first
year and 20 million Mexican pesos the second year. The U.S.
company would incur a cost of $2 million at the start of the
project, and its cost of capital is 12%. The expected spot rate is
$0.13 for Year 1 and $0.11 for Year 2. (1)Calculate the net
present value of this project . Show how you derive the answer;
and (2) Should the U.S. company invest in the project? Why or
why not?