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What steps can the firm take to develop its orientation to CSR and sustainability in
international operations?

Answer

Companies can take the following steps to develop their corporate social responsibility and
sustainability positioning in international operations

1. Develop closer relationships with foreign stakeholders to better understand their needs and
collaborate on solutions.

2. Building internal and external capabilities to improve the enterprise, contributing to local
communities and the global environment.

3. Create an organizational structure that employs managers and workers around the world so
that different voices can be heard.

4. Developing global CSR standards and goals that are delivered to all companies around the
world.

5. Train managers on the principles of global corporate social responsibility and integrate
these principles into management responsibilities.

Administrators such as the International Chamber of Commerce and Industry that have
adopted the "Extortion and Bribery Prevention Code of Conduct" and the International
Chamber of Commerce and Industry that have announced the "Declaration of Corruption and
Bribery in International Commerce" integrate CSR and sustainability into global operations
You can use a variety of resources so that you can. , The Organization for Economic Co-
operation and Development (OECD) has signed a bribery prevention agreement. The United
Nations Global Compact is a working framework for companies dedicated to sustainability
and responsible business practices. The Global Reporting Initiative sets standards and
indicators for how organizations measure and report their economic, environmental, and
social performance. In order for a company to ultimately utilize CSR and sustainability, the
company goes deep, wide and community. The deep meaning is to institutionalize
appropriate behavior into an organizational culture and make it part of the strategy. Wide
stands for an ongoing effort to understand how CSR and sustainability impact every aspect of
business operations worldwide. Local requires companies to research their global operations
to identify and remediate local issues that affect customers, competition, reputation and other
aspects that affect their businesses worldwide.

Describe the classical theories of international trade. Which theories do you believe are
relevant today?

Answer
International trade theory is simply another theory for explaining international trade. Trade is
the concept of exchanging goods or services between two people or entities. In this case,
international trade is the concept of this exchange between people or entities from two
different countries.

Classical trade theory is based on the value theory of labor costs. This theory states that
commodities will be exchanged for each other according to the relative amount of labor
embodied in them. A product of the same price embodies the same amount of labor. Adam
Smith presents well-known illustrations.

Comparative advantage is one of the most relevant today’s. It is a fundamental tenet of the
argument that all parties can always benefit from cooperation and voluntary trade. It is also
the basis of international trade theory.

What is the difference between the concepts of absolute advantage and comparative
advantage?

Answer

Absolute advantage is the non-competitive advantage of a country or company that is better

at producing a particular product. Comparative advantage introduces opportunity cost as a
factor in the analysis when choosing different options for diversification of production.

Absolute advantage is the ability to produce a product with less inputs than other producers,
while comparative advantage is the ability to produce a product at a lower opportunity cost
than other producers (reflecting relative opportunity cost).