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PAIDGlendate, Arizona

Permit No. 169

AMERICAN GRADUATE SCHOOL OF INTERNATIONAL MANAGEMENT

VOL. 4-HO. 5 Glendaie, Arizona 853% FEBRUtfT 21,1975

Neo-Marxian Economics

Resurgence Of Old Discipline Discussed

is It For Real?

by Professor Hago SoilPrefatory Note: I offer this review of Neo-Marxian economics not as a presentation of my views, but as an attempt to fairly present the contemporary Neo-Marxian economic view.

"Hie deepening recession of the VS. economy is creating in­ creased interest in Neo-Marxian economic theory, according to a page one article in the February 5. 1975. issue of the Wall Street Journal. In fact, according to this article, Neo-Marxists such as Harry Magdoff, editor of Monthly Review, are increasingly being sought oat by businessmen to express their views at luncheons and other gatherings.

Unfortunately, the quality of reporting in this article was not up to the Wall Street Journal's typical standards. The reporter included no substantive discussion of the Neo-Marxist view. Instead he attended a so- cafled teach-in in New York City at which unheard of groups such as the Taxi Rank and File

OMlitiMr*and- "White Lightning gave talks.

Unfortunately, such groups most likely have little or no knowledge of what Neo-Marxian economic theory is about. It is hoped that this brief article will serve to raise the level of discussion.

John Gurley is a monetary theorist at Stanford and is often quoted in Neo-Marxist circles. He points out that perhaps the most important element missing in orthodox economic theory is a consideration of power relationships between groups (e.g. labor vs. capital) and between nations. Gurley points out that orthodox economic theory can not explain why some nations have grown rich while other nations have grown relatively poor.

A great deal of insight into this can be gained by studying in­ ternational power relationships which have historically existed among nations. Examples would be the impact of the colonial relationship which existed be­ tween Britain and India or be­ tween Spain and Latin America.

Furthermore, the Neo-Marxist would argue that the integration of third world nations into the international economy as raw material suppliers prevents balanced domestic development and makes them susceptible to international market fluc­ tuations.

The heart of Neo-Marxian analysis rests on a contemporary concept of surplus. A society's potential surplus is defined as the difference between what could be produced if a society's existing resources were fully utilized and a socially determined level of essential consumption.

For example, essential con­ sumption in the U.S. might be defined as the consumption level of a lower middle-income family. The potential surplus that is available either for investment or Pleas* Turn To Pag* 3, Column I

What's Up!Januar

Friday, February 28Brazilian Club - Dinner at 5

pjn. Dance in the Student Lounge at 8 p.m.; Placement Orientation in the Auditorium at 5 p.m. - Leo Burnett Advertising.

'Sunday. March 2Placement Orientations in the

Auditorium, Harris Bank at 4 p.m.. Chemical Bank at 5 p.m.; Flying Club at 5:45 p.m. in Classroom l; Lutheran Services in the Interfaith Center at 11 a.m. (Sunday School at 9:30 a.m.); Mass at 4:30 p.m. in the In­ terfaith Center.

Monday, March 3Placement Orientation in the

Auditorium, US. General Ac­ counting Office - 3 p IB Toastmaster's Intl. at 7:30 p.m. in the Thunderbird Room; Middle East dub at 7 p.m. in Classroom 5.

Tuesday, March 4Placement Orientations -

Auditorium, 5 p.m. - Chase Manhattan Bank, 7 p.m. - 1st National City Bank; French Club 5:30 to 7:15 p.m. in the T-Bird Room; Yoga Class in Sobo Lounge at 5 p.m.; Investment dub at 7:38 pjn. in Cfann 4; Middle East Club at 7 pjn. in dsrm 5.

Wednesday, March 3Placement Orientation -

Auditorium, 5 p.m. Bank of America; MOTOROLA DAY sponsored by Marketing Asso­ ciation; Middle East Club at 8 p.m. in Clsrm 5.

Thursday. March 6Placement Meeting - Mr.

Fonvielle at 5 pjn. in the Auditorium; Transcendental Meditation lecture at 7:30 p.m. in the Auditorium; International Festival Committee 75 in the Thunderbird Room at 5:30 p.m.

Interviewing, Keystone International Seed Co.

Friday, March 7Asia Club at 7 p.m. in the

Thunderbird Room.American Management

Association Finance Council will be on campus for a panel discussion.

Madrid SymposiumSouthern Methodist University

operates a five-week summer session June 3 - July 8 in Madrid, Spain. AGSIM students may earn a maximum of 9 fully trans­ ferable hours. Approximate cost is SO per semester hour plus charter fare from Dallas. Direct inquiries to:

Professor Mike Wooton School of Business

Ad ministrationSouthern Methodist University | Dallas. Texas 75275 i

Carnival

Brazil Club. Holds Celebration

The Rei Momo (King of Car­ nival) recently proclaimed in Rio de Janeiro that there is no in­ flation, no unemployment, no recession and furthermore, there simply are no problems of any kind.

With this proclamation, Brazil began its greatest popular festivity Carnival. That special annual event brings Brazil's 110 million people, plus thousands of foreign visitors, into a four day frenzy of dancing and singing to uV rhythm of samba.

The Brazilian Club, in the same spirit, asks you to drop your books, term papers, job search and all your problems and start your weekend by eating a typical Brazilian dish frijoada, a thick stew of black beans, sausages, dried beef, and pork, heaped over rice and farofa topped with stripes of collard greens and chunks of oranges. With this plate you wiH drink caipirissiau, a drink mat enjoys the mixture of rum, lime juice and sugar.

The menu will also include Bahia's famous Carnru dish a Northeast treat of shrimp and Rrigadeiro. This dinner will be served today in the student cafeteria from 5 to 7 p.m.

A costume carnival dance (you ,can come dressed as a student) will follow in the student lounge area next to the Coffee Shop. A live band will play a mixture of carnival. Latin and American music from 8 p.m. to 1 a.m. Caipirissima will again be served and beer may be purchased for fifteen cents. A prize will be given to the best male and female costume dress.

New ClubsThe Korean American Asso­

ciation and the Italian Club were granted charters at the Club Council meeting on February 18th. Students interested in joining may contact Joh Chung- Sup Park (Korean American Assoc.i or Don Loyd (Italian dub). Both clubs are open to all students.

Friedlander PromotedJohn Friedlander former Das

Tor staff member has been promoted to the position of Assistant Editor. Devotion to duty was cited as the reason for the promotion.

iaa 3 lorEditor....................................... Jim HildebrortdtAssistant Editor .............................. John FriedlanderProduction Editor.................................. Dione PaulCopy Editor................................... lorna BjorklundBusiness Manager.................................. Uku HeinlaPhotography Editor ............................... . Paul TveitStaff......... .............. Rovi Loi. Walter Bocquero, Beth Perry

Sue lurter. Vickie Kludjion, Pincas Jawet2Croig Williams, Morgon Honsen

Jeff Slocum. Alex BenzemonnDavid Poienge, Franco Molino

OAS TOR is the official campus newspaper of the American Gnduate School at In­ ternational Management. Opinions expressed in this publication are not necessarily those of the Das Tor staff.

TWl PRODUCTIVITY

«. I ijj. i22 ~

M«M3!:ng e»ecu:«es a! rustier levels of 'esoonsoiiity sno* nn-

veo ice se^ofnance anc ioc satisfaction TI meir >oos a«3 imp

^•JCP. more nan meditators *fo wo'* x tower *ves of organization Trie fugue/ me level 0i auffxxny we srea»f the cam in pro-flyclwify Vtr oogn Transcenflental Meditation

Transcendental Meditation

A Source Of Wealth

Nothing succeeds like success. Nothing moves men like money. but how do you get to the success and money? Through land, labor, and capital, or technology? Or is, it through the ability to use your full potential? Transcendental meditation unfolds the full potential of the individual in a consistent and systematic way.

Transcendpntal meditation (TM) ranks as a major discovery in our times. Over 200 scientific studies at Harvard, Stanford, and other leading universities around the world have evaluated the effects of TM, as taught by Maharishi Mahesh Yogi. They conclude that TM improves, icalth and expands mental potential, while increasing motional stability and creativity in problem solving.

Transcendental meditation is effortless and easily learned in a short period of time. The technique brings the body and mind to a unique state of stability and orderliness the perfect preparation for successful ac- ivity.

In the spirit of last month's United States Senate Resolution. 64, "A Resolution to Increase Public Awareness of Trans­ cendental Meditation," a presentation of TM will be held Thursday. March 6, at 7:30 in the auditorium. "Maharishi on Government," a dramatic and historic record of Maharishi addressing the Michigan and Illinois Legislatures, as well as his meetings with the governors of those states, win be shown. There are presently 450,000 meditators in the USA and 30 of them are Thunderbirds. For urther information please

contact John Gibson. Box 362. 938-76®.

Private Schools Are Pinched

(CPS) Since January l, 1970, a total of 71 private colleges have closed or merged, according to a survey by the National Council of Independent Colleges and Universities.

The council found 50 colleges had closed. 15 had merged with other institutions and six had t>een converted to public ownership.

During that same 4»2-year period, only 26 new schools opened.

Student Inputffecommendof/ons To The Academic Board Of Visitors

Will They Listen?

On Saturday, February 15, whfle some T-Bbrds were en­ joying the Pow-Wow at Casa Grande, members of the ASLC were meeting with the Academic Board of Visitors. This board is composed of respected educators from around the US who come to AGSIM once a year as con­ sultants to evaluate the school and make suggestions for im­ proving it. In order to get in­ formation from students they usually schedule one meeting with only students present To prepare f er this issetisg students met with Keith Cromley of the Academic Affairs Committee during the proceeding week. Present on Saturday were: Keith Cromley, Larry Bradley, Ken Krasney, Arthur Carter, Arge Pomar, Jose Noriega, Linda Stack, Barnett Bursley. Doug Sankey, Jorge Verduzco, Courtenay Daniels, and myself, Brace Harris.

During the several hours ofprwjouragmg interchange thestudents expressed themselves candidly and in the end they felt doser to the school and its problems. They began to see the school as a team whose problems they shared. The students had spent the previous week discussing and selecting the issues they felt warranted at­ tention. The specific suggestions they made included the following:

1. As the school's reputation is enhanced this presents an op­ portunity to raise entrance standards. Applicants with superior academic background and those with work experience in pertinent areas should be encouraged.

2. Confirmation of acceptance should be required of entering students in order to facilitate planning and avoid the sweet- sour problem of over­ subscription. A non-refundable advance deposit of RO or $100 would be appropriate if provision is made for excepting toe financially weak applicant.

1 The present dormitories offer a unique atmosphere but could easily stand a thorough renovation; or alternatively and probably better, move to Carefree.

4. We could make better use of the valuable experience of our ex- busffiessman faculty members if they taught primarily the 400 and SOOlevel courses and if they could receive training to improve their skills in the area of educational communication. One way to help such faculty stay fresh and relevant would be to encourage such faculty to take on outside consulting work in their field. Student participation in such consulting could be a valuable addition to the AGSIM ex­ perience.

5. Class sizes are currently entirely too large to provide the kind of personal interaction mat students expect at the graduate level.

fag» 3, Column 2

2-DAS TOR-February 28,1975

Canada: Beggar Or Thief? MTERNATMNAL PERSKC1IVE-by John Fried landrr

It has often been said that when the United States sneezes. Canada catches cold. However in UK case of crude oil, Canada has been doing the sneezing, and the Urited States hrs caught the chills.

In October of last year. Canada announced that she would begin redwing the barrels of oil that she presently ships stateside to near zero by 1981. This news was particularly distressing to the United States because Canada has alwavs been con­ sidered as a secure and depend­ able source of ofl. The real surprise is that less than two years ago, Canada was clamoring for lower import quotas so that she could sell more oil to the U.S,

Canada has just recently begun to face th« problem of a domestic oil crisis. Her known reserves will run out in about seven years, and so far, she has done nothing about it. Canada was the only country to register a decreasejn drilling last year. When one balances out the amount of oil going in to Canada and the amount of oil going out. one comes to the startling realization that Canada, is a net importer of oil.

The major reason for this strange situation is the fact that Canada's restrictive pricing and lax policies have virtually abolished all incentives to ex­ plore and drill. Consequently, oilmen have been packing up their gear and venturing into the VS. where profits are there for the taking.

The restrictions that make the Canadian oil industry such an

unprofitable business are based on a political problem that has plagued Canada for years. The problem is most akin to the States' Rights controversy of pre- CSvil War America.

The ten provinces of Canada are highly diverse in nature and are held together by an Act of the British Parliament passed in 1867. Until recently, relatively speaking, the western provinces have served as the waterboys to Canada's heavily - populated, industrial East.

But with the development of the ofl industry, coupled with the provinces* right to own their natural resources, the western provinces have experienced unaccustomed prosperity and are demanding a louder voice in the affairs of the nation.

Prime Minister Trudeau, howevef.does not like the idea of She provinces telling the federal

government what to do. He is also not enthralled with the provinces raking in tax money from the oil industry while the Fed gets nothing.

Consequently, the Prime Minister has disallowed oil royalties as a deductible item on income tax, which causes the provinces to hike up the oil tax to make up for profits lost to the federal government And so it goes on. ever upward, ad in- finitum.

Experts have estimated that it will take over 50 billion dollars to right the capsized Canadian oil industry. But one thing is for sure. Unless the federal govern­ ment and the provinces can resolve their differences and reduce their "piece of the action" Canada's "darkest" hour will come sooner than she thinks. And when it does, she may have no midnight oil to burn!

editorialsWomen Where Are You?

by Virginia McCampbellOur estimated enrollment

indicates we number 130 of WO this semester. These statistics should be of interest to you women students from a social and business standpoint. No where this side of the bush lands of Australia will you find the male female ratio more in your favor. You should also be in­ terested to know that 18 of the 31 women who graduated in 1974 left AGSIM with jobs.

Uku Heinla's article "ERA for the Birds" last week touched on a superficial problem which will face AGSIM women; while women's rights mav be the fad to the VS., we will be faced with a

Open ForumLetter to the ed:

It's .noontime here in the Das Tor office and the staff is getting the copy for this week ready to send out to the printer. However, we find that this week there just aren't a whole lot of student generated articles.

Now it is beyond my com­ prehension how 900 students who seem to have a lot to say off toe record, won't put their ideas down in print If you're going to make it out there in the real world, you're going to have to have the courage of your con­ victions.

Don't be afraid to express yourselves. We need people who are willing to write for this paper, Stand up and be beard!

This is your publication and you can make it or break it. If you have compl lints or compliments about the school or any subject", let's hear them. The only way to effect change is to speak up. So get your letters to the editor into Das Tor now! Let us be your forum. John FYiedlander

Assistant Editor

less egalitarian attitude abroad. I submit there is an alternative.

Unfortunately many- women today are experiencing pressures which would make Sigmund Freud cry. Those of us with the desire to achieve are led to believe we can only do so by:

1 > Becoming one of the guys2) Insisting on public

humiliation of male chauvenists3> Seizing even- opportunity to

assert our rights4» Striving for equality by

denouncing all things feminine. i.e.. makeup, hair, skirts.

To belie these truths' is to be a traitor to the cause. What cause? b the Women's Political Caucus or Ms. magazine paying your way through AGSIM?

Ladies - let us not be female chauvenists. Our new freedom really amounts to the fact that women can accept themselves as people. We have tile bonus of being females in a masculine world. A masculine appearance

. does not mean acceptance as man's equal. Do not be ashamed of your femininity and attempt to hide behind jeans, t-shirts, khaki jackets and hair as long and straight as the male students!

You could use the opportunity of this year at AGSIM to learn how to make the most of yourself.' mentally and physically. It may have been some time since you analyzed your appearance, for example. Take a look in the mirror: Does your appearance project pride, self-confidence, success and belief in what you are selling?

You will be so analyzed in the business world, as successful business people know. Bear in mind that you win 'make the

.sale," or get the job you want based on many points other than your grade average.

Also remember that T-Birds around the world have become a closely knit group: your classmates today may be the leaders of tomorrow. Project your positive self now it'll be

good practice for the future when you must leave Camp T-Bird and compete in the business world.

Women as individuals have succeeded by combining the virtues of intelligence and femininity. The best-known example is Mary Wells Lawrence. Believe in the flexible combination of the two for they can serve you well. Stand up and be counted as a self-confident woman.

ASLC Revisited or "Watergate at AGSIM"

The following conversation was reported to Das Tor by sources

to the ASLC. The reliability of all information contained herein is verified by the columnist.

Tee": Have you heard much the ASLC recently'

"Bird": You mean the Associated Students Legislative Council?

"Tee": Yes. the elected legislative body which represents the Associated students here at AGSIM.

"Bird": Well to tell you the truth I think a lot of students are wondering what ASLC does.

Trc"- Must be Das Tor's fault, they never cover the im­ portant news.

"Bird": That may be part of it but from what I've heard the ASLC is undergoing a change.

"Tee": What kind of change, a coup d'etat, expropriation, or what?

"Bird": You know what the Executive Committee of ASLC is don't you''

"Tee": Sure, it is the ad­ ministrative arm of the ASLC. It is responsible for administrating and co-ordinating the legislation of ASLC. It consists of the President, Vice President, and Treasurer of ASLC.

"Bird": That's right Anyway Ex Com (The Executive Com­ mittee > is attempting to adapt a "new way" into the operations of student government!

"Tee": Great! New is better right!

"Bird": Not better at all if the "new way" erodes the power of the students, the ASLC, and other ptjups on campus.

"Tee": Hey. this is starting to sound like "Watergate".

"Bird": Don't laugh, it could very easily happen here at AGSIM. especially if the current trend continues.

"Tee": You know you may have something there. I've

noticed a disintegration of the congenial attitude which once prevailed in the ASLC office. And all those secret meetings behind closed doors - a definite gestap^ mentality.

"Bird": It seems that rather than read the Associated Students Constitution the ExCom members preferred "wining

and dining" with student activity funds. Strangely enough no

was submitted for the occasion. Cover up?

" 'Tee": I've heard that ASLC and minutes which were_

once available for all to look at have suddenly been

behind closed doors - because the students aren't

to know what their government doesn't want

them to know."Bird": That is of coarse the

technique used by Nixon.Violate the constitution then

.cover it up."Tee": What other things are

on in ASLC?"Bird": Well, if you'd seen

minutes from the firs* ASLC meeting you'd realize that Ex­ Com was trying to railroad through their own conception of what AGSIM students wanted, fa this attempt several con­ stitutional violations were made. Some of these entailed illegal motions by non-voting ExCom affiliates, creation of committees without ASLC approval, com- mitoients of ASLC funds for specific projects (a student directory costing approximately $1200) without ASLC even ap­ proving the project. I could go on but let's think of a constructive way out of this.

'Tee": Maybe if the students realized that their combined activity funds provide ASLC with over $13.000 to spend they would pressure their ASLC represen­ tatives to become more responsive to the Associated Students and to use greater scrutiny in allocation of funds. The Associated Students might also realize that ultimate legislative power lies with toem thru recall, referendum and initiative actions.

"Bird": I hope that if the ASLC President reads this he doesn't follow through wift histhreat of putting the Das Tor under ASLC fontrol.

"Tee": I hope not either. Afree press is a necessity for un­ covering some of the things we talked about today.

"Bird": Send my regards to Jack Anderson, The Washington Post and all others who believe to the people's right to know.

Tee": T-Birds" look for more of us in weeks to come, hopefully with better news.

Among the most welcome changes on campus I would like to mention the revival this term of the "Middle East and Africa Club".

This semester the rostrum of students contains a total of 29 staients, citizens of ten different countries, that are part of the area cared for by the club. The present AGSIM student-body includes: 11 students from Iran, 3 sttidents from Israel, 10 students from African States (Ghana (II, Kenya j3>. Liberia (2), Nigeria (4), ), and 5 students from member states of the Arab League (Jordan(l), Lebanon (l), Saudi Arabia (2). Syria (1) ).

This school prides itself for attracting students from Africa and the Middle East, and as part of the school's policy, the flags of the home countries of our foreign students are displayed at our festivities. I do submit that much more could be achieved con­ sidering the variety of our student body.

The foreign students could and should enrich the learning ex­ perience on campus and manv regional clubs at AGSIM have actively done so for years.

The main exception to this

process was the "Middle East and Africa Club" (called so in spite of the fact that "A" comes before "M" and the natural name would have been Africa and Middle East Clubi. For years this club was known only for two things: (li for the Middle Eastern party that usually has as its main attraction a beUy- daacer, and (2) for the acrid atmosphere created by an em­ phasis on the conflict between the Arab states and Israel.

While otter clubs were busy organizing cultural events and "tables" in the Dining Hall, to speak in their respective languages, this dub was bringing speakers that would time and again repeat official and unof­ ficial Arab policy on one subject Israel.

Now something has happened. At the club's first meeting this semester Robert Sherman from Liberia has been elected president by a 34:21 majority. His executive committee includes: Abdullah Al-Ajroush from Saudi Arabia as Vice-President, Martin Amoke from Kenya as treasurer and Rashida Manujee from Kenya as secretary. Bob Sherman was elected on a platform of depoliticizing the dub and of transforming the club into a center of cultural activities. Hie "Middle East and Africa Club" covers such a variety of cultures that if led with the interest of the student body at heart, it can become one of the most im­ portant groupings on campus.

and a real enrichment value for our students.

. Bob Sherman has already initiated a program of teaching ttie languages of the main groups included in the dub. Though true that AGSIM is contemplating establishing Arabic language classes next year, it is thanks to Bob Sherman's initiative that already this semester four new languages win be taught on campus. As of now the plans are for one hour a week, classes on a totally voluntary basis.

The following classes will be taught, all in classroom No. 5: Arabic on Tuesday 7 pjn. Hebrew on Monday. 7 pjn. Persian on Tuesday 5 p.m. Swahili on Wednesday 8 pm.

ft seems that these language classes will turn out to be a success, as quite a few people did > register already, and the registration is still open.

Plans are being made now also ; for the party on May 2nd that ; win include a cross section of all the member groups of the club. ,

The club is open to everybody willing to make a positive con­ tribution, and the club executives wil welcome suggestions from anybody how to make the clob more relevant to the area and to the AGSIM students. Please do extend them your help and this may become an institution on campus that will contribute to our learning about our fellow students' home countries that is the next best thing to going there. PincasJawetz

Neo-Marxian EconomicsFebrui<728,1975-N$TOR-3

Continued from page 1for additional consumption. The way in which this potential surplus is used determines the rate of growth and the way of life in a given economy.

In industrial countries it is argued that this surplus is irrationally dissipated in four basic ways. First, even in times of high employment there exists substantial unutilized plant, equipment, and labor whose output is lost because of a lack of planning and organization.

Second, a substantial number of workers and managers are engaged in unproductive ac­ tivities which contribute nothing to human welfare such as in the field of marketing or in carrying out unnecessary model and style changes.

Third. an irrational, monopolistically - structured industry with excessive product variation, inefficiency, and misaUocation of resources in production and research dissipates the potential surplus.

Fourth, because of insufficient aggregate demand, business cydes periodically occur which result in substantial unem­ ployment or unused resources. For example, it is estimated that during the Great Depression in the U.S., the loss of output due to unemployed resources was roughly equal to the total cost to die U.S. of WW n.

This same type of analysis may be applied to Third World nations where it is argued that, though total potential output is small, after subtracting out essential consumption, the potential surplus is relatively large. It is this potential surplus that could provide the basis for rapid economic development if it were used productively.

However, because of the oligarchical, traditional social structure and the extremely unequal distribution of income and wealth, it is not used productively. Rather, it is deposited in Swiss banks, in­ vested in estates or luxury apartments, spent on imported Mercedes Benzs and other luxury goods, travel abroad, and the general maintenance of a lavish level of living on the part of a small percentage of the population.

to support of this view, it would be pointed out that in many Third World nations less than 10 per cent of the population receives more than 40 per cent of fte national income. If a4 of this 40 per cent could be diverted into productive investment, thendomestic capital formation would be increased by over 300 per cent in some countries, a development. that could make foreign economic aid and foreign investment un­ necessary. This theory is set forth in much greater detail by the now-deceased Paul Baran in his book. The Political Economy of Growth.

China is now taken as a model of what even poor nations can achieve by mobilizing their potential surplus and utilizing it productively. Russia is regarded as having departed from the path to a communist society and as representing a form of state capitalism.

tt is possible to accept the' foregoing theorical structure as being valid without being a Neo- Marxist because the true Marxist believes a dynamic process is inevitably leading us through various historical stages to feudalism, to mercantile capitalism, to industrial capitalism, to socialism, and ultimately to a true communist society. .

b the last analysis the extent to

which the current resurgence of the Neo-Marxist view proceeds will depend on the and severity of existing economic problems. In this respect, one can' only observe that real GXP in the US. declined perhaps 2 per cent last year, while Cuba has become the fastest growing nation in North and South America, with the possible exception of Venezuela with its oil and its highly unequal distribution of income.

Last year Sweden, a mixed economy, achieved a 45 per cent real growth rate, and Russia achieved a real GNP growth of over 7 per cent. China is in the process of canceling foreign grain orders while famine occurs in India and Bangladesh. On the other hand, in the U.S. we en­ counter the highest budget deficit in ffi years (62 billion), the highest rate of inflation in over three decades, and fte highest level of unemployment since before WW II.

As regards U.S. poHcies to deal with inflation, we encounter President Ford's proposing a tax on imported oil in order to cut consumption and at the same time releasing billions of dollars to build new roads which wiD only serve to expand the demand for petroleum. This combined with tightly reasoned arguments Uke "over my dead body" (will we have gasoline rationing) suggest perhaps a certain wisdom on the part of businessmen who are increasingly inviting Neo- Marxian economists to present their views.

Student InputContinued from page 1

6. The number of courses taken by most students during a typical semester makes excellence in any given area very difficult to achieve and places unhealthy stress on many students.

7. The student run academic survey is a valuable tool for generating feedback on courses and professors, but alone it is not to be relied upon to promote, give tenure, or release a professor.

8. The excellent library building is crowded at present. Reciprocal borrowing privileges with other university libraries in the area should be automatic.

9. Ironically for a business oriented school, AGSIM seems to suffer from a lack of long-range planning. A student shouldn't have to face mid-year raises in tuition. Nor should he have to leave school once accepted for reasons of financial need.

10. Within the generally ex­ cellent language department, 30Qa classes are sometimes com­ posed of students with a variety of levels of previous language experience. The resulting in­ timidation of the less ac­ complished (which is especially noticeable in some Spanish and Portuguese classes) is un­ necessary and unprofessional.

11. In the I.S. department the professors are very accessible.

12. The Placement Center is a valuable resource but some students don't get full value from it because the director is very busy and can't take on some types of desirable counseling, specifically in the pre-career counseling area.

In summary, the group felt that the day was well spent and they expected many good ideas to be implemented soon. They all felt that the session should be repeated next year. ASLC Committees will be working to implement some of the above suggestions. Your input in student or faculty is encouraged.

Corporate Windowby Cralf WPUams American Hospital Supply Corporation

In a prospectus dated November 26. 1974 American Hospital Supply Corporation reported to its stockholders that the company was in sound financial coodtion. As of Sep-

30. 1974 AHSC had net earnings of S33.9 million - an increase of 13.7 per cent from the previous year. Due to a sales volume of over $714 million, AHSC held inventories of million while maintaining a liquid or spick ratio of 100 per cent.

These impressive figures are of little surprise wHn one considers the type of business in which the company is involved. American Hospital Supply is a multinational manufacturer and distributor of a wide range of products and services used and consumed primarily in the health care fidd.

As a result of the relative inelasticity of health care products and services, AHSC has enjoyed considerable growth ova- the past decade. However, the company's sales and profit figures are of little value without placing them in perspective with the rest of the economy and more specifically, its competitors within the economy.

In the January 5, 1975 issue of Fortes, SB companies, all of which had sales of at least S2SO million in 1974, are ranked ac­ cording to growth, profitability and stock market performance. During a period of double-digit inflation and a rapidly worsening depression, these rankings are extremely valuable in deter­ mining which companies are best prepared to face the hard times that lie ahead. As a result, the remainder of this article will essentially consist of an in­ terpretation of American Hospital Supply's rankings in Forbes' "Yardsticks of Management Performance."

AHSC ranked extremely high in terms of growth 190 out of a field of 859 companies. This rank reflects a rate of earnings - per - share growth of 12.1 per cent. In

of sales growth, .toman Supply ranked a very

impressive 144 with an increase of 18 per between tte recent five year average and that of fte five years.

Once again. figure come as no surprise one con­ siders that the care in­ dustry is little by in­ flation and a repressive economy. Regardless of the economy's condition, people get sick and are wiling to pay a high pice in order to regain their health.

In terms of profitability. AHSC's 1974 performance was not so impressive. There are basically two sources from which companies obtain capital: stockholders and creditors. The figure which represents the profit return on the stockholders* portion of a company's capital is known as the return on equity.

In this respect, American: Hospital Supply had a five year average return of 10.8 per cent good for a mediocre rank of 497. However, in terms of the profit return on a combination of stockholders' equity (both common and preferred) plus long-term capital from otter sources, including long-term debt, minority interests and deferred taxes known as the return on capital AHSC ranked 278 with a profitability of 105 per cent.

The close proximity of these two returns indicates tot the American Hospital Supply has been able to avoid entering the long-term money market. During a period of high interest rates, such a situation must be viewed as favorable.

In terms of AHSC's per­ formance in the stock market, 1974 must be considered a disaster. American Hospital Supply's stock market rank dropped from an impressive 162 in 1973 to 442 in 1974. The com­ pany's five year price change amounted to -42.7 per cent equivalent to a 19704 price range of SPu to 18*4. Apparently, Wall Street has been rather sceptical of AHSC stock despite the company's incredible growth.

fa to anappearing fa the WaB

areet Journal oo February 21,1975. AHSC's stock is in store for

doe to theof intravenous

at a Georgia and" therecalling of 10 unite

the*. Asa result ofthis action, analysts are an-

a first quarter profitdecline which cannot be assessedintil the full impel of the recallis known.

to respect to its seven com­ petitors in the manufacturing of

care products, American Hospital Supply ranks 6 in terms of return on equity, 4 m terns of return oa capital and sates pwwtn, and 3 in terms of eara- ings-per-share growth.

to view of the fact that AffiCs competitors consist of strong companies such as G.D Searle and Johnson & Johnson, these ranks are not very impressive. White AHSC's growth rate is significant in respect to the economy as a whole, it is still lagging behind its major com­ petitors.

American Hospital Supply is also involved in the wholesale distribution of health care products. In respect to its five competitors in this fidd. AHSC ranks 4 in terms of return on equity, 3 in terms of return on capital, and 2 in terms of sates and earnings - per - share growth.

Quite obviously, all of these rankings will suffer due to the recent action by the F.D.A. Jost how much American Hospital Supply win be hurt cannot be estimated until the full affects are learned. However, it can be summized from the above analysis of Forbes' rankings of management performance that AHSC is not as weH off as it is leading its stockholders to believe.

Despite its impressiwe growtt-and its ability to avoid excessivedebt, American Hospital Supplyhas not performed up tostockholders expectations interms of profitability and stockmarket reaction. Nevertheless.

Pleats Turn ToPage 4, Column 5

Tripartite? A Purpose

DAS TOR STAFF MEETINGNEW TIME AND PLACE

" FRIDAYS 2:00 AT THE FOB

by John FriedlanderThis article is going to rehash a

subject tnat I'm sure many of you have heard more often than you'd care to tolerate. However I feel that it is important enough to bear repeating.

The point of the matter is this. AGSIM is devoted to three broad areas of study (what is grandly referred to as a tripartite curriculum). They are World Business. International Studies, and Langauge. Unfortunately, many people feel that World Business is the only discipline that matters, and that Languages and International Studies should really take a back seat

As far as I'm concerned, this attitude couldn't be more wrong. I accept the fact that the business courses undertaken here at T- Bird do provide us with the essential skills and abilities to conduct ourselves in the business world. That is all well and good. But the international business world is made up of much more than production schedules, financial investments, and letters of credit. It is made up of people people with individual per­ sonalities, motivations, and characters, with whom each of us will have to come into contact. If we don't know how to relate to an individual on a level other than one purely economic, we're finished before we start.

This is where Language and International Studies help fill the gap. These two disciplines help us to delve into the person with whom we're doing business to

understand the forces which shape his behavior. International studies does this blatantly, language is more subtle. In learning a new language, we are internalising a new way of ap­ proaching a problem. As we learn the structure of a language, we become aware of new per­ spectives because we are using a different logic-structure to examine the world around us.

While we may not see these two subject areas as ends unto themselves, their importance becomes dearly visible when we accept the notion that there is more to international business than business itself. As Mon­ taigne put it. "je prefere une tete bten faite que bien pleine." Which roughly translated means - A well-stocked mind is good; a well- ordered mind is better."

BetweenTheBookendsby Jim Hi/defarondf

"Morale Problems in Non- American Multinational Cor­ porations in the United States." Dr. Ehud Harari & Dr. Yoram Zeira Mangement International vol. 14 1974 6. Text in EngBsh with a synopsis' in French and German. Americans are provided with an excellent aid for putting themselves in the position of others. Non-Americans who will stay in the U.S. have apreview of potential problems.*

"Continuing Education and the Experienced Manager." Philip T Crotty California Management Review, Fall 1974 vol 17 no. 1. Explores the MBA myth and the effectiveness of MBA programs in relation to management development programs.

"Controlling Export Controls." Guy F. Erb, Foreign Policy Number 17. Winter 1974-75. There are insufficient means to regulate the use of export con­ trols on a global basis.

I

_}

4-MS TOR-February 21,1975 BELGIUM'S

Christian Social PartyThis is the fifth in a series of

fifteen articles on European political parties. It is taken from a paper of Ron Hershey.

The Christian Social Party (PSC). Belgium's traditionally dominant political party, faces increasing pressures to modernize and to adopt more specific planks for its party platform.

The linguistic problem remains critical in Belgium, concentrated in bilingual Brussels, headquarters for scores of multinational companies. Since the 1968 elections, the PSC. the Socialist Party, and to some extent the Liberal Party, have found it increasingly difficult to maintain party unity because of severe linguistic disputes.

In 1968. new elections were forced partly due to disputes between Louvain University's 11.000 Flemish and 10.000 French -speaking students. The Flemish wanted the French - speaking sections to be transferred to the new university on their own side of the linguistic line. (Roughly divided, the northern half of Belgium is Felmish - speaking and the southern half is French - speaking.)

Eight Flemish PSC ministers from the Catholic and Liberal coalitions walked out, forcing the prime minister. Paul Vanden Boeyants, to resign. This marked the first instance in post-war Belgium that the language question had caused the govern­ ment's downfall.

The PSC draws support from many groups, including fanners, workers and businessmen. The Flemish vote is very important to the PSC, with Flanders casting 60 to 70 per cent of its votes for the party. French - speaking Wallonia also providessiantficuit voter support.

Party discipline is strong in Belgium. When individual members of Parliament disagree over an issue, strict adherence to the party line is expected. A member of Parliament who goes against his party may find his

name omitted from the next electoral list.

The Christian Social Party does not seem to require very specific programs in order to gain its traditional support. Many people choose the PSC because of its Catholic tradition. And mam' tend to equate the party with stability.

The PSC has always tried to support the farmer, especially in seeking higher farm prices and guarantees to tide him over lean years. In recent years, the PSC has tried to attract more workers. Some observers have noted" that the PSCs overall program is becoming more and more like that of the Socialist Party.

Increased emphasis by the PSC recently has been on greater social benefits, including health insurance and on efforts to end unemployment. And the party has pushed for a regional economic policy to assist back-' ward areas and to provide economic decentralization, a policy some observers say would ease language friction.

In the field of foreign policy1 , the PSC strongly supports NATO and the European integration movement. Belgium was an early- leader in pushing for the Com­ mon Market. Modern bustling Brussels, truly a crossroads of European business, is ample testimony to early integration efforts.

Critics of the Christian Social Party, particularly younger people, find the party too traditional in an environment of an increasing change. They say the PSC will have to modernize and adopt more specific stands on important issues if the party is to sustain its leadership in Belgium politics.

While there may be many crises ahead for the PSC and the Belgium political system, one has to observe that there is great patience among Belgians, a long tradition of democracy and the rule of law, and great respect for individual rights.

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COME GENERAL

Motorola DayThe Thunderbird Chapter of

the American Marketing Association is sponsoring "Motorola Day" on Wednesday, March 5. The day's schedule calls for Motorola executives from the International Operations section of the company to visit and lecture in various classes during the<lay, meet with students and faculty and to participate in a panel discussion at 7 p.m. in the auditorium.

Gerry Pellegrini. Manager, International Business Planning, will lecture in Professor Schlar's 9 a.m. class in the auditorium. Manager of Analysis for the Director of International Operations, Alien R. Kaplan. will address Professor Reed's WB412 class at 2 p.m. in classroom 4, Professor Marks will host Ron

Rasmus, Manager, International Human Relations in his s p.m. class in classroom 5.

The evening panel discussion, which is open to the student body, has as its topic. "Motorola in the New International Business Environment." Panel par­ ticipants are: Mr. Roger Damm. Manager. International Business Services: Robert E. Novascone, Manager of Public Relations; Edwin A. Rader, Manager, In­ ternational Accounting, and Robert J. Vogel, Manager International Marketing. Each panelist will give a 10 minute talk with a brief slide presentation and the balance of the time will be open to questions from the audience.

Peter Colley of the Marketing Association is coordinating the program.

ASLC AnnouncementThe ASLC encourages CU>

parties and will assist them financially to the degree possible. This financial cooperation is possible partly because of the Activity Fee that is paid by each student. Consequently the Club party is a campus wide event. The Dining Hall management cooperates with the dub, if requested, and substitutes the regular evening menu with one suggested by the Club <

COMMUNITY CHURCH OF JOY (ALC)WELCOMES AGSIM STUDENTS TO

WORSHIP (SUNDAYS) 8:30 & 11 AMLENTEN PORTRAYALS (WEDNESDAYS) 7:30 PM

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the party. Hence only those students with a meal contract are entitled to dinner without charge. Everyone else must pay for the evening meal as usual.

Corporate WindowConflowed from peg* 3

as inflation and recession take their toll on producers of con- saner -oriented items which are more elastic than health care products, American Hospital Supply will continue to glow.

Unfortunately, the fact remains the same for its com­ petitors. AHSC must attack the health care market with new aggressiveness in order to win back the share of the market lost due to the recent action of the FD.A. In addition. AHSC must improve its profit oflity in order to regain its favorable image on Wan Street. Needless to say. these are two very sizable tasks.

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