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Economics and Culture ECONOMICS AND CULTURE Vol. 5 Riga 2012 Economics and Culture. 2012, Vol. 5 ISSN 2255-7563 Editors-in-chief Staņislavs Keišs, Professor, the University College of Economics and Culture (Latvia) Velga Vēvere, assoc. Professor, the University College of Economics and Culture (Latvia) Editorial Board Ineta Kristovska, Dr.philol., Dr.oec., assoc. professor, the University College of Economics and Culture (Latvia) Leonid Cibovskiy, Cand.paed., assist.professor, Institute of Entrepreneurship (Belarus) Waldemar Dotkuś, Dr.habil. oec., professor, Wroclaw University of Economics (Poland) Toomas Haldma, PhD, professor, University of Tartu (Estonia) Valiantsina Hedranovich, PhD, Minsk Institute of Management (Belarus) Zaiga Ikere, Dr. habil. philol., professor, Daugavpils University (Latvia) Helma Jirgena, Dr.oec., assoc. professor, Institute of Economics, the Latvian Academy of Sciences (Latvia) Anikó Kalman, Dr. habil., Budapest University of Technology and Economics (Hungary) Gundars Ķēniņš Kings, PhD, Dr.h.c., Dr.habil.oec., professor, School of Business Administration, Pacific Lutheran University (USA) Arvydas Virgilijus Matulionis, Dr. habil.oec., professor, Lithuanian Social Research Centre, Member of Lithuanian Academy of Sciences (Lithuania) David E. McNabb, PhD, professor emeritus, School of Business Administration, Pacific Lutheran University (USA) Borisas Melnikas, Dr.habil.oec., professor, Vilnius Gediminas Technical University (Lithuania) Ebba Ossianillsson, PhD, professor, Lund University (Sweden) Dzintra Paegle, Dr.philol., assoc. professor, the University College of Economics and Culture (Latvia) Milan Pol, PhD, professor, Masaryk University (Czech Republic) Arild Saether, Dr.oec., professor, University of Agder (Norway) Jānis Sīlis, Dr.philol., professor, Ventspils University College (Latvia) Indra Sinka, PhD, senior lecturer, the Open University (the United Kingdom) Biruta Sloka, Dr.oec., professor, University of Latvia (Latvia) Ojārs Spārītis, Dr.art., professor, Art Academy of Latvia (Latvia) Helka Urponen, PhD, professor, University of Lapland (Finland) Vita Zariņa, Dr.oec., assoc. professor, School of Business Administration Turība (Latvia) Aija Ziemeļniece, Dr.arch., assoc. professor, Latvia University of Agriculture(Latvia) Secretary Inga Šīna, assoc. Professor, the University College of Economics and Culture (Latvia) Articles in the journal are double-blind peer reviewed Publisher: The University College of Economics and Culture Address: Lomonosova 1/1, Riga LV 1019 Telephone: (+371) 26811600 e-mail: zinā[email protected] Fax: (+371) 67114111 Home page: http://www.eka.edu.lv/public Literary editors Aiga Švalkovska CONTENTS Monetary and fiscal instruments in business – problems, risks, challenges Aneraude Baiba (Latvia). THE MEANING OF INTUITIVE AND RATIONAL THINKING MANAGEMENT IN DECISION-MAKING ............................................7 Biernacki Michal (Poland). LIFE CYCLE COSTING AS A TOOL OF LIFE CYCLE MANAGEMENT ...........................................................................................19 Dimants Pēteris (Latvia). METHODOLOGY OF DECISION MAKING IN SME ....25 Jakušonoka Ingrīda, Prohorovs Anatolijs (Latvia). PROBLEMS AND TRENDS IN VENTURE CAPITAL: A CRITICAL ANALYSIS ....................................................41 Keišs Staņislavs (Latvia). CHALLENGES OF GLOBALIZATION TO ECONOMICS SCIENCE AND LATVIA ...................................................................51 Kozlovska Ieva (Latvia). QUALITY OF FINANCIAL INFORMATION AS AN IMPORTANT ELEMENT OF CORPORATE GOVERNANCE................................67 Lazdiņš Andrejs (Latvia). THE EXPERT ASSESSMENT OF THE MINERAL RESOURCE MARKET DEVELOPMENT IN LATVIA............................................81 Tkalenko Svitlana (Ukraine). SOCIAL INVESTMENT IN BUSINESS AS BASIS OF MODERNIZATION OF ECONOMY OF THE COUNTRIES IN THE CONDITIONS OF GLOBALIZATION ......................................................................89 Vieru Markku, Schadewitz Hannu (Finland). HOW MARKETS VALUE IFRS......101 Vītola īrija, Joma Daiga (Latvia). PROBLEMATIC ASPECTS OF VALUE ADDED TAX AND THE IMPROVEMENT POSSIBILITIES IN LATVIA ...........113 Zelgalvis Elmārs, Joppe Aina (Latvia). THE CORPORATE INCOME TAX’S IMPACT ON INNOVATION....................................................................................127 Balanced and sustainable regional cultural development Āzena Ligita, Vēvere Velga (Latvia). POSITIONING OF TERRITORY AS FACTOR OF SUSTAINABLE DEVELOPMENT OF REGION .............................139 Dāvidsone Inese (Latvia). SLOW MOVEMENT LIFESTYLE – THE FOUNDATIONS OF NATION’S SUSTAINABLE DEVELOPMENT AND LIFESTYLE BUSINESS ...........................................................................................149 Klimek Marek (Poland). INNOVATIVE METHODS OF ANIMATING LOCAL COMMUNITIES IN THE SOCIO-CULTURAL DEVELOPMENT ON THE EXAMPLE OF LOCAL ACTIVITY CENTRE ........................................................163 Melece Ligita (Latvia). POTENTIALITIES OF SUSTAINABLE DEVELOPMENT: INTERACTION OF CULTURE AND TOURISM....................171 Mirzodaieva Tatiana, Hivchak Taras (Ukraine). THE PERSPECTIVES OF THE UKRAINIAN – LATVIAN INTER-REGIONAL COMPETITION .........................183 Tjarve Baiba (Latvia). DECENTRALIZATION OF CULTURE IN LATVIA DURING THE TRANSITION PERIOD (1991–2010)..............................................195 Veikša Ingrīda (Latvia). LAWFUL USE OF INTELLECTUAL PROPERTY – THE BASIS FOR SUSTAINABLE COMPETITION ...............................................207 Wieckiewicz Bogdan (Poland). MARRIAGE AND FAMILY IN POLAND. BETWEEN TRADITION AND POSTMODERNISM..............................................215 Ziemeļniece Aija (Latvia). FORMULATIONS OF CULTURAL HERITAGE REVITALIZATION IN THE HISTORICAL CENTERS OF SMALL TOWNS......227 Monetary and fiscal instruments in business – problems, risks, challenges The Meaning of Intuitive and Rational Thinking in Management Decision Making 18 ECONOMICS AND CULTURE THE MEANING OF INTUITIVE AND RATIONAL THINKING IN MANAGEMENT DECISION MAKING Baiba Aneraude M. Soc. Sc., Dr. cand of inter-university study programme Business Administration, [email protected] Abstract In current economic situation and rapidly changing environment when it is difficult to predict the process of economic development and what will happen to currency, stocks and trade markets, taking into consideration that the information exchange is very quick, very often the winner on the market is a company which is the fastest to react. Every day the manager of the enterprise has to make decisions affecting the development of the enterprise and to foresee the consequences of the adopted decisions, and above all, to process large amount of information that can significantly influence these decisions. In the context of current globalization and rapid economic development, as well as considering the impact of the economic crisis, it is very important for the company’s manager to find an appropriate way of decision making to be able to react quickly and to be confident in the positive impact of decisions made on company’s development, earnings and growth. The scientific article describes the methods of decision-making and explains the difference between rational and intuitive decision making. Scientists have carried out a number of researches, but a sole proper method of decision making has not been found yet. Therefore the following questions remain open: • Is it possible to rely on intuition only or a careful data analysis is needed? • Is it possible to make decisions based merely on the obtained results? • How to cope with limited time resources and huge amount of information to have positive consequences of the decisions taken? Key words: Decision-making, intuition, intuitive decisions, rational decisions. Introduction Decision making is a great challenge for managers in today’s rapidly changing economic environment, since time resources are limited, while the amount of information to be analyzed is enormous, and it keeps changing. The managers must not only study all available information, but also understand which information is useful and which is useless for decision making. Therefore decision-making is one of the most difficult tasks for the manager. Two styles of decision-making – rational and intuitive – will be discussed in the research paper, as well as benefits and flaws of each decision to provide 7 The Meaning of Intuitive and Rational Thinking in Management Decision Making every individual with the opportunity to choose the decision-making style that would lead to the best result. The paper describes a study of the validity of two independent thinking styles: rational and intuitive. Research methods – qualitative research method and literature analysis. The paper aims at comparing the intuitive thinking and rational thinking, looking for similarities and differences, as well as summarizing the scientific research on these issues. Decision Making Decision making is often characterized by the lack of essential information, lack of time, the effect and significance of decisions for business, often high-level of complexity. The skills which help managers deal successfully with such difficult conditions to a great extent determine their success in ensuring control over business processes. The most essential aspects which influence the decision making are the amount of information and time resources, since exchange of information in current global world is very rapid, and there is a great amount of information on the factors
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