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    Chapter 5 - Globalization & Society

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    globalization chapter of international business management

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    Chapter 5 - Globalization & Society

    Uploaded by

    Anonymous cwC8kTy
    106 views18 pages
    globalization chapter of international business management

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    Chapter 5- Globalization & society

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    © © All Rights Reserved

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    globalization chapter of international business management

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    106 views18 pages

    Chapter 5 - Globalization & Society

    Uploaded by

    Anonymous cwC8kTy
    globalization chapter of international business management

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 18

    International Business

    Environments and Operations,


    13/e
    Global Edition

    Part Two
    Comparative Environmental Frameworks

    5-1
    Copyright © 2011 Pearson Education
    Chapter Five
    Globalization
    and Society

    5-2
    Copyright © 2011 Pearson Education
    Chapter Objectives
    • To identify problems in evaluating the activities
    of multinational enterprises (MNEs)
    • To evaluate the major economic effects of MNEs
    on home and host countries
    • To understand the foundations of responsible
    corporate behavior in the international sphere
    • To discuss some key issues in the social
    activities and consequences of globalized
    business
    • To examine corporate responses to globalization

    5-3
    Copyright © 2011 Pearson Education
    Evaluating the Impact of FDI
    • FDI is Foreign Direct Investment
    • The large size of some MNEs causes
    concern for some countries
    • MNEs and countries need to understand
    the impact of FDI in home and host
    countries

    5-4
    Copyright © 2011 Pearson Education
    What MNEs Have To Offer

    5-5
    Copyright © 2011 Pearson Education
    Considering the Logic of FDI
    • Need to consider relationship between
    those who make foreign investments
    (MNEs) and possible effects on receiving
    countries
    • Areas to consider:
     Stakeholder trade-offs
     Cause-and-effect relationships
     Individual and aggregate effects

    5-6
    Copyright © 2011 Pearson Education
    The Economic Impact of the MNE
    • Balance-of-Payments effects:
     Net import effect
     Net capital flow
    • Growth and Employment effects:
     Home-country losses
     Host-country gains
     Host-country losses

    5-7
    Copyright © 2011 Pearson Education
    Why Companies Care About Ethical
    Behavior
    • Instrumental in achieving two objectives:
     To develop competitive advantage
     To avoid being perceived as irresponsible

    5-8
    Copyright © 2011 Pearson Education
    The Cultural Foundations of Ethical
    Behavior
    • Relativism vs. Normativism: do truths
    depend on the values of the groups or are
    there universal standards
    • Negotiating between evils

    5-9
    Copyright © 2011 Pearson Education
    The Legal Foundations of Ethical
    Behavior
    • Legal justification for ethical behavior may
    not be sufficient because not everything
    that is unethical is illegal.
    • The law is a good basis because it
    embodies local cultural values.
    • As countries tackle similar ethical issues,
    laws will become more similar.

    5-10
    Copyright © 2011 Pearson Education
    Ethics and Bribery
    • Bribes are payments or promises to pay cash or
    anything of value
    • Bribes are used to get government contracts or
    to get officials to do what they should be doing
    anyway
    • Problems with bribery:
     Affects performance of company & country
     Erodes government authority
     Damages reputations when disclosed
     Increases cost of doing business

    5-11
    Copyright © 2011 Pearson Education
    Where Bribes Are (and Are Not)
    Business as Usual

    5-12
    Copyright © 2011 Pearson Education
    What’s Being Done About
    Corruption?
    • Cross-National Accords: The
    Organization for Economic Cooperation
    and Development (OECD), the
    International Criminal Court (ICC), and the
    UN
    • The U.S. Foreign Corrupt Properties Act
    • Industry Initiatives
    • Relativism, the Rule of Law, and
    Responsibility
    5-13
    Copyright © 2011 Pearson Education
    Ethics and the Environment

    • Sustainability
    • Global Warming and The Kyoto Protocol
     National and Regional Initiatives
     Company-Specific Initiatives

    5-14
    Copyright © 2011 Pearson Education
    Future: How to See the Trees in
    the Rain Forest
    • The Amazon rain forest accounts for 1/3 of
    the world’s remaining tropical forest
    • Kyoto Protocol proposes reforestation to
    reduce greenhouse emissions
    • Major Challenge: protect global
    environment while preserving Brazil’s
    sovereignty over resources

    5-15
    Copyright © 2011 Pearson Education
    Ethical Dimensions of Labor
    Conditions
    • Ethical Trading Initiative
    • The Problem of Child Labor
    • What MNEs Can and Can’t Do

    5-16
    Copyright © 2011 Pearson Education
    Sources of Worker-Related Pressures in
    the Global Supply Chain

    5-17
    Copyright © 2011 Pearson Education
    Corporate Codes of Ethics
    • Motivations for Corporate Responsibility
    • Developing a Good Code of Conduct

    5-18
    Copyright © 2011 Pearson Education

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