Challenges of a Global Business Essay

1176 Words 5 Pages
Conducting global business is extremely complex and difficult. At times both countries involved may not be in agreement, but decide to conduct business anyway. For a company to conduct business in another country there is extensive research, negotiation, and compromise done before it can be finalized. Even though not all standards meet those of the United States, some companies continue to make business abroad. Some companies when investigated and found guilty of unethical behavior, blame their actions on not knowing about it or on the subcontractor or supplier. It is inevitable to avoid ethical issues when conducting global business. This is mainly because of differentiation of foreign laws, regulations, and policies. Among those there …show more content…
The differences in cultures between countries involving possible misunderstandings relating to the traditions that require the exchange process (e.g., transactions) may be understood by one culture as bribes but in reality be an acceptable business practices in another culture. These types of traditions include gifts, monetary payments, favors, entertainment, and political contribution. This is why it is important for expatriates to study the culture and way before traveling to a foreign country.

The issue of globalization and working conditions, especially in less developed countries, is a complex one. Some may argue against “sweatshop” labor and the exploitation of the working poor. Although others argue that such jobs offer good economic opportunities for workers, providing better jobs than are otherwise available to them. Again what United States consider unethical might be seen at that country as an opportunity.

Globalization has led to exploitation of labor and human rights are being compromised. Prisoners and child workers are used to work in inhumane conditions. Safety standards are ignored to produce cheap goods (LEVINE). Because some countries do not enforce child protections or human rights, government pays little or no attention to this type of treatment. Some high powered distance countries accept inequality, in these areas women remain disadvantaged in many areas of life, as education, employment health, and rights.

Developed countries
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