Chapter Twelve International Business and Globalization Jerry Estenson

Ethical Relativism Revised Do not assume that diverse cultures have diverse ethical values Principles that are held may not be practiced because of circumstance not abandonment of the principle (bribery) The preservation of one’s integrity is necessary because integrity is the very core of one’s self Be clear about how ethical is defined (different cultures may have a better view than the West)

International Rights Moral minimum - acknowledge the “negative duty” to do no harm Moral maximum – the greater the power the more the responsibility to provide positive benefits and support to communities Donaldson – United Nations “Universal Declaration of Human Rights” DeGeorge – Ten shoulds for multinational corporations

Context of International Business Globalization defined “process of international economic integration” Free Trade – pursuit of profit within social and economic arrangements that secure free and open competition. – This will Allocate resources to their most highly valued use Distribution in this manner will produce the greatest good for the greatest number of people Improve poverty Reduce conflict between nations

Counter view Create a “race to the bottom” – Lowest wages, lowest environmental standards, lowest health and safety, lowest equal rights and lowest level of self-determination

Does creation of mobile jobs support the poor As jobs are exported lower level jobs disappear in one country but appear in another because people will have to choose between economic death or a low paying job Reduces people to an economic equation and disregards theoretical benefits such as community

Behavior in other countries Use of contract labor as a means of avoiding responsibility

Impact of Trade barriers Regulation bars access to markets (tuna, hormones in beef)

Impact of Global Organizations World Trade Organization World Bank International Monetary fund – Agenda - if you embrace western capitalism then you receive support Defense – Regulation seems to increase environmental, worker, and consumer protection – Thee organization were created by governments in the countries regulated – These organizations are courts or arbitrators trying to resolve conflict. This is best done in private rather than in public forms. Remember they are not legislative bodies