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Describe typical ethical problems that firms encounter in international business.

Answer

The most common ethical issues in international business are outsourcing, labor standards
and conditions, workplace diversity and equal opportunities, child labor, trust and integrity,
oversight, human rights, religion and politics. Includes environment, bribery and corruption.

What is intellectual property? What industries are most affected by threats to

intellectual property?

Answer

Intellectual property:
Intellectual Property (IP) refers to creations of the mind, such as inventions, literary and
artistic works; design; Symbols, names, and images used in commerce.
The IP is protected by law, for example by patents, copyrights, and trademarks and people
may derive recognition or economic benefit from inventions or creations. The IP system aims
to nurture an environment in which creativity and innovation can thrive by striking the right
balance between the interests of innovation and the broader public interest.

All divisions of the arts and entertainment industry are vulnerable to intellectual property
theft. Live theaters are often "cinecast" in cinemas to increase the number of people who can
attend the show. This causes the same type of theft that theater productions use to steal the
main movie.

Distinguish relativism and normativism. Which one should the firm apply in its
activities?
Answer
Relativism of organizational ethics refers to ethics that are considered when the ethics of a
particular culture or society are taken into consideration. Normism or universalism means
universal ethics that are not limited to a particular culture or society ( Scheuerman, 1996).
Both concepts are more relevant in international companies than in domestic companies. For
state-owned enterprises, it's easy to understand and follow the ethics of a particular society,
as you don't have to touch other societies and cultures. But for international companies, you
need to decide how to handle ethical issues that may arise in other countries and societies.
For example, the same ethical situation can be dealt with differently than in other societies.
To address this issue, businesses can adopt universal ethics regardless of national and cultural
boundaries. These ethics are applicable to any country and have the ability to address issues
of different cultural backgrounds under the same guidelines.

 What is an ethical dilemma? Give an example of an ethical dilemma that MNEs

encounter abroad.
Answer
An ethical dilemma (ethical paradox or moral dilemma) is a problem in the decision-making
process between two possible alternatives, both of which are absolutely unacceptable from an
ethical point of view. We face many ethical and moral issues in our lives, but most of them
contain relatively easy solutions. Examples of
 Ethical dilemmas include:
1. Praise others for their work.
2. Offer bad products to customers for their own benefit.
3. To use internal knowledge for one's own benefit