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a power index of 104 and scores a 26 on individualism on Hofstede’s model (Clearly, 2015) this would mean the same multinational business would act in a more ethical manor conducting business in America compared to Malaysia. The differences in social culture found in a host
8country can determine how ethically a business will conduct itself regardless of the social culturethe business has in its home country. Ethical Issues and dilemmas in international business are rooted in the variations among political systems, laws, economic development and culture from nation to nation”. (Hill, 2015, 159) From these differences come issues and dilemmas relating to, employment practices, humanrights, environmental regulations, corruption, and moral obligations. Like ive stated previously international business’s may be tempted by cheaper labor rates in un developed countries but it probably isn’t culturally accepted in the business’s home country. Once a business starts outsourcing and gets criticized for underpaying outsourced labor, the business is faced with an ethical dilemma. If the business pull production form an undeveloped country jobs will be lost. That the citizens of the undeveloped country have grown to rely on these jobs. If the business does pull production from a country, the citizens of that country wont be happy, but if the business doesn’t pull production form that country the business’s home country will not see the business as moral or ethical. The same is true for human rights, environmental regulations, corruption, and moral obligations issues. One countries culture will accept what the business is doing and consider it ethical, while the business’s home country or business’s industry sees it as immoral and wrong. 4. Going Global Strategies.
9With globalization growing, firms are forced to compete globally to stay competitive. In this situation competitors who are competing internationally will be able undercut a firm that is not in the international market. Offering products and services to wider market of consumers by competing internationally will allow the firm to achieve economies of scale that will allow them to stay competitive internationally. The main factors managers use to decided on market entry areprofit and profitability. The managers of the firm will ultimately choose a strategy that will achieve efficiency by maximizing profit and profitability.A business that uses a transnational strategy provides the same goods to multiple countriesbut keep some operations national to fulfill the “need to be locally responsive”(Hill, 2015, 475). Although consumers purchase the same product in different countries a difference in cultural norms creates marketing problems for businesses, to solve this problem many business use a transnational strategy. This allows the business to allocate resources in a way that “simultaneously pursues global efficiency, national responsiveness and knowledge development and exploitation on a worldwide basis.”(What, 2015) A transnational strategy has many