Conflict of relative development Business practices that are ethical in one country may be unethical for another country.

Therefore, the managers must understand the different levels of ethical standards of different countries. There are two types of conflict that commonly exists namely conflict of relative development and conflict of cultural tradition. The level of conflict of relative development arises because of different level of economic development. For e.g. the wage rate between US and India is different because of level of economic development in those countries. As the economic conditions improves this level of conflict decreases. In coming days if the economic development levels of both countries are same, the wage rate will eventually become similar indicating that with the economic development the level of conflict decreases. In order to solve the conflict of relative development, manager must understand that the practice suitable at the home country would be good enough at host countries of similar economic development or not. In the example of US and India, the managers must consider the difference of wage rate and safety standards of both countries.