Issues In International Business

BY

SRIRAM [3511110078]PADMA PRIYA [3511110082]MOHAMMAD SHAHID [3511110070]AJAY JOHNS [3511110114]AJAY GLAMIN [3511110106]ROOPANYA [35111012 3]ARUL RAJ [3511110105]

Some Of The Issues while carrying on International Business are as follows.

They are

1.Social Issues

2.Ethical Issues

3.Labour Issues

4.Environmental Issues

Social Issues In International Business

The Common Social Issues while carrying outInternational Trade are:

The Country with which we do international trade might be ruled by a corrupt leader or a party. Military rulers pose a serious threat for international business.

If the Home country and the trading country are at war. If two countries are at war then there wont be any international trade between them

The Attitude of the host country towards foreign investment is negative. Host countries may impose special rules for MNC’s

If The country where we do our International trade lacks social infrastructure .Inadequate facilities may require a company carrying on international business to build housing, establishing schools and providing transportation facilities for the employees.

Government Interference is yet another Issue. If the government of a host country insists on becoming a partial owner Of the foreign business

Ethical Issues In International BusinessThe Common Ethical Issues are:

1.Employment practices

2.Human rights

3.Work Environment

4.Bribery and Corruption

5.Moral obligation of multinational firms

6.Product Safety

7.Fair Price

8.Following Local Laws

9.Impact On Local Social Institutions

10.Fair Return On Investment

The Basic Labour Issues are:

1.Child Labor

2.Forced Labor

4.Health and Safety

5.Working Hours

6.Low Wages

Labour Issues In International Business One of the important social issues in the developed

countries in respect of business with the developing countries pertains to ill treatment of labour and children.

Child labour used in the manufacture of exports from the developing countries is widely criticized by people in the developed countries. For example, it is alleged that child labour is used by the carpet industry in India and some other countries and social activist in the developed nations demand ban on the import of goods embodying child labour. Consumers are called upon to boycott such goods

Similar issue is the sweat labour. The argument here is that goods are manufactured by labour working in inhuman/unhealthy working conditions not getting fair wages should be banned or boycotted. Creating important developing country, like garments, are alleged to be suffering from such problem

According to a Report, it is a regrettable feature of many export processing zones that both male and female workers are trapped in low wage and low skilled jobs The frequent absence of minimal standards and poor labour management relations have predictable outcomes, such as high labour turnover, absenteeism, stress and fatigue, low rates of productivity, excessive wastage of materials and labour unrest which are still too common.

The Labours working are also forced to work for maximum number of hours in a day and are also paid only low wages. The Work Environment is also poor and unsafe and there are also no proper facilities available in case of any unfortunate happenings. And There are also reports of these labourer’s being tortured both physically and mentally if they fail to act according to the orders given to them by the superior authorities.

ENVIRONMENTAL ISSUES IN INTERNATIONAL BUSINESS

Some countries prohibit the import of goods which cause ecological damage. For example, the US has banned the import of shrimp harvested without turtle excluder devise because of its concern for the endangered sea turtles. Countries like India are affected by it.

Developing countries are affected by the relocation of polluting industries from the developed it the developing ones. Similarly, several products which are banned in the developed nations are marketed in the under developed world

The dumping of nuclear and hazardous wastes in developing countries and the shifting of polluting industries to the developing countries impose heavy social costs on them. The exploitation of the natural resources of the developing countries to satisfy the global demand also often causes ecological problems

The next concern about environmental issues is the role of trade relating to more social preferences. Some practices may simply be unacceptable for certain people or societies, so they oppose trade in products which encourage such practice. These can include killing dolphins, Whales in the process of catching tuna, using leg hold traps for catching animals for their furs, or the use of polluting production methods which have only local effects.