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What is considered normal practice in one country BUT considered unethical in other
This is all about ethic. Ethics refer to accepted principles of right or wrong that
govern the conduct of a person, the members of a profession, or the actions of an
organization. Some of the decisions might legal and ethical in one country, but not for
other country. The most common ethical issues in international business include
employment practices, environment regulations, human rights, moral obligation of
Multinational Corporation and also corruption.
For example, ethical issue of employment practices that happened in Nike 1990s.
There was an outbreak of massive strikes in Vietnam. About 15thousands of Ching Luh
factory workers involved in this protest. They requiring Nike manufacturer to raise their
salaries about 20% to cope with soaring prices in Vietnam. But Nike Company
emphasized that the Ching Luh factory has paid with the higher by 14% than minimum
wages that established by the Government of Vietnam to the workers. At last the
managing merely to raise about 10% of their salaries. From here we can said that Nike
Inc considered normal practice because Nike think it is not fine for a multinational firm
to tolerate poor working conditions in its foreign operations, but Vietnamese considered
unethical in their country.
Besides, bribery may be acceptable in some countries. In many developing
countries, the practice of providing bribes is so common that not to do so may be
interpreted as an insult or lacked of respect, but not for Japan. In other hand, Japanese
views payment to foreign officials to secure business deals as a normal practice. As
similar to bribery, tipping. It is very normal to tip restaurant waiters and taxi drivers in
North America intended to get preferential service, but people from many part of the
world are insulted by this practice. Child labor is another ethical issues and still common
in many part of developing countries, slavery continues, and harmful pest control
chemical is allowed. A practice such as child labor, which is seen as unethical in
developed country, but is a must in some developing country for families to survive.
In my opinion, an ethical issue that may rise in developing countries sometimes is
because of lack of laws and regulations. Different culture and standard of living are the
main causes that made a country in terms of how they view about a practice, either
ethical or non-ethical.

. which has a wide range of beverage products under its brand. which can hurt a business's bottom line. Both Coca-Cola and Pepsi are the predominant carbonated beverages and committed heavily to sponsoring outdoor events and activities. Pepper and other brand have failed to reach the success that Pepsi or Coke has enjoyed. Rivalry refers to the competitive struggle for market share between firms in an industry. Extreme rivalry among established firms poses a strong threat to profitability. to improve quality. Domestic rivalry creates pressures to innovate.4. Dr. the competitive rivalry examines how intense the competition currently is in the marketplace. When rivalry competition is high. Rivalry competition is high when there are just a few businesses equally selling a product or service. in food and beverage industry. which is determined by the number of existing competitors and what each is capable of doing. According to Porter’s Five Forces. to invest in upgrading advanced factors. Because Pepsi. That means Coca-Cola and Pepsi ensue implemented marketing and price wars were hurt the bottom line company like Dr. Pepper. when the industry is growing and when consumers can easily switch to a competitors offering for little cost. For example. and to reduce costs. How the rivalry within an industry affects international competence. which makes them better international competitors. Vigorous domestic rivalry induces firms to look for ways to improve efficiency. advertising and price wars can ensue.

then the ad valorem tariff is only 3.5 . Tariffs raise the cost of exporting. For example. A quota is a numerical limit on the quantity of a good that may be imported into a country during some period.5. Thus. trade barrier which affect strategy is tariffs. Second. tariffs are taxes levied on imports that raise the cost of imported products relative to domestic product. in this example. quotas may limit a firm’s ability to serve a country from outside of that country. many politicians accuse Japanese companies of dumping.5 percent ad valorem tariff. domestic consumer increase the demand for domestically produced substitute goods. and it is hoped that Thailand will open the market for agricultural products currently subject to tariff quotas. Dumping can occur when a firm sells its product in a foreign country at a price below what it charges in its home market or lower its prices in the host country to drive host country firms out of the market. How trade barriers affect a firm’s strategy. the threat of antidumping actions limits the firm’s ability to use aggressive pricing strategy to gain market share in a country. The reason is Japanese goods often retail higher prices in Tokyo than in New York City. Finally. For example leather ski gloves imported into United States are assessed a 5. As we know. putting the firm at a competitive advantage. Due to the price rising for foreign goods. the supply of the good is no longer perfectly elastic at the world price. Because the import quota prevents domestic consumers from buying an imported good. Third. to conform to local content regulations. For example. are irrelevant in determining whether dumping has occurred. and then charge monopoly prices to host country consumers once competitors have been eliminated. Thailand applies tariff quotas to 23 agricultural produces and Chinese side will watch closely the implementation of the tariff concession measures. such as year. Japanese companies did not implement dumping act. Retail prices. but if the gloves are specifically designed for cross country skiing. a firm may have to locate more production activities in a given market than other. First. we can found that Thailand applied quotas to certain agricultural product has limit other country’s firm to export their product to Thailand. but in fact.

While for disadvantages of acquisitions are may fail when the acquiring firm overpays for the target. Greenfield investment also facing the possibility of being preempted by global competitors that enters via acquisitions. In another hand. While for the pros of acquisition are quick to execute. . For the pros of Greenfield investment is it gives the firm a much greater ability to build the kind of subsidiary company that it wants. it is easier to build a new working culture than change an old organization culture from the acquire unit to the new one. we can conclude that tariffs is benefit for the domestic firm’s business strategy as they are protected by government from the foreign company. 6. a degree of uncertainty is associated with future revenue and profit prospects. Comparison of Greenfield investment and acquisition. and involving buying a known revenue and profit stream. Most parent companies also create new long-term jobs in the foreign country by hiring new employees.percent. For the cons of Greenfield investment are slower to establish. While acquisition investment occurs when a target company is acquired by another company by cash or debt to purchasing outstanding stock. They are risky. the target company ceases to exist in a legal sense and becomes part of the purchasing company. For example. may enable a firm to preempt its global competitors. when the cultures of acquiring and acquired firms clash. a. As with any new venture. Greenfield investment is a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. and also may fail if there is a failure to integrate the operations of the acquiring and acquire firms. since the workers used to it. Both of these investments have their own pros and cons. both of these investments have their own cons. So.

or they prefer rather to build a new working culture than change an old organization culture from the acquire unit to the new one. acquisition may be the better choice for them. Things such as skills and organizational culture are difficult to codify. it is much easier to embed in a new venture than in an acquired entity. then I suggest greenfield venture. In my opinion. In conclusion. . and in which suitable and interested by global competitors in establishing presence. where the firm may have to overcome the established routines and culture of the acquired firm. if the firm is considering to enter a country in which there are no incumbent competitors to be acquired. if the firm is seeking to enter a market in which there are already there are already well-establish officeholder enterprises. Greenfield venture may be too slow to establish a sizeable presence. In other hand. but it may be better to enter by the slower route of a Greenfield venture than to make a bad acquisition.b.