Ethical Issues In International Business

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Introduction Globalization is a fact of Economic Life – Carlos Salinas De Gortari. Globalization is not a new thought. This process of interaction and integration among the companies, people and government of different countries is happening from ages. Technology has been the major driver of globalization. Economic life has been transformed dramatically by the advances in information technology. However, globalization is controversial. The proponents of globalization claim that it gives an opportunity to the poor countries to grow and develop economically. On the other hand, opponents claim that free market has benefitted multinational corporations at expense of the local people, culture and enterprises. The management concepts create a significant …show more content…

Any unfair trading that is committed is treated as criminal offence under EU law. This could be false information, omission of any information or fails in identifying the commercial intent of commercial practice. Ethical Issues Ethical issues in international business are rooted in the fact that law, development, political system and culture vary from country to country. There are 5 most common ethical issues in international business which are: Employment Practices – The working condition of each country differs from other country. It may be possible that the laws and regulations are lenient in host nation as compared to home nation. Environmental regulations – Ethical issues arise when the environmental regulations of host country are stringent to home country. This may result into increased pollution levels thereby attracting the penalties. Corruption – Corruption is one of the major issues which still continues in the society. Many international businesses have gained economic advantage as they pay to the government officials. But many countries like USA has an Act in place that outlaws the practice of bribe payment to government official for their gain in …show more content…

Job security is low as the companies start letting go if the company runs in trouble. Japanese employees have trust and acceptance factors of management decisions when it is concerned with application of practices and policies Americans do not work at high level capacity and do not assist in greater extent. Managerial Culture The managerial culture of USA can be described as individualistic. The managers are accountable for all the decisions that are taken within their area of responsibility. The managers more likely disregard the subordinate’s opinion as compared to other cultures. Importance of each individual is linked to the power they have. (CDA Media, 2016) Conclusion International Business Management is all about thinking globally and acting locally. International business has encouraged the idea of bringing all the countries together. Though there are many challenges from language, culture, technical development and business attitude that are faced by the managers working globally. A company or an individual need to have proper strategy in their mind when managing people from cross cultural

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