Some Of The Issues while carrying onInternational Business are as follows.They are1.Social Issues2.Ethical Issues3.Labour Issues4.Environmental Issues
Social Issues In International Business The Common Social Issues while carrying outInternational Trade are:The Country with which we do internationaltrade might be ruled by a corrupt leader or aparty.Military rulers pose a serious threat forinternational business.If the Home country and the trading country areat war. If two countries are at war then therewont be any international trade between them
The Attitude of the host country towardsforeign investment is negative. Host countriesmay impose special rules for MNC’sIf The country where we do our Internationaltrade lacks social infrastructure .Inadequatefacilities may require a company carrying oninternational business to build housing,establishing schools and providingtransportation facilities for the employees.Government Interference is yet another Issue.If the government of a host country insists onbecoming a partial owner Of the foreignbusiness
Ethical Issues In International BusinessThe Common Ethical Issues are:1.Employment practices2.Human rights3.Work Environment4.Bribery and Corruption5.Moral obligation of multinational firms
6.Product Safety7.Fair Price8.Following Local Laws9.Impact On Local Social Institutions10.Fair Return On Investment
The Basic Labour Issues are:1.Child Labor2.Forced Labor4.Health and Safety5.Working Hours6.Low Wages
Labour Issues In International BusinessOne of the important social issues in thedeveloped countries in respect of businesswith the developing countries pertains to illtreatment of labour and children.Child labour used in the manufacture of exportsfrom the developing countries is widely criticizedby people in the developed countries. Forexample, it is alleged that child labour is used bythe carpet industry in India and some othercountries and social activist in the developednations demand ban on the import of goodsembodying child labour. Consumers are calledupon to boycott such goods
Similar issue is the sweat labour. The argument hereis that goods are manufactured by labour working ininhuman/unhealthy working conditions not gettingfair wages should be banned or boycotted. Creatingimportant developing country, like garments, arealleged to be suffering from such problem According to a Report, it is a regrettable feature ofmany export processing zones that both male andfemale workers are trapped in low wage and lowskilled jobs The frequent absence of minimalstandards and poor labour management relationshave predictable outcomes, such as high labourturnover, absenteeism, stress and fatigue, low ratesof productivity, excessive wastage of materials andlabour unrest which are still too common.
The Labours working are also forced to work formaximum number of hours in a day and are alsopaid only low wages. The Work Environment isalso poor and unsafe and there are also noproper facilities available in case of anyunfortunate happenings. And There are alsoreports of these labourer’s being tortured bothphysically and mentally if they fail to actaccording to the orders given to them by thesuperior authorities.
ENVIRONMENTAL ISSUES IN INTERNATIONAL BUSINESSSome countries prohibit the import of goodswhich cause ecological damage. For example, theUS has banned the import of shrimp harvestedwithout turtle excluder devise because of itsconcern for the endangered sea turtles.Countries like India are affected by it.Developing countries are affected by therelocation of polluting industries from thedeveloped it the developing ones. Similarly,several products which are banned in thedeveloped nations are marketed in the underdeveloped world
The dumping of nuclear and hazardous wastes indeveloping countries and the shifting of pollutingindustries to the developing countries impose heavysocial costs on them. The exploitation of the naturalresources of the developing countries to satisfy theglobal demand also often causes ecological problemsThe next concern about environmental issues is therole of trade relating to more social preferences.Some practices may simply be unacceptable forcertain people or societies, so they oppose trade inproducts which encourage such practice. These caninclude killing dolphins, Whales in the process ofcatching tuna, using leg hold traps for catchinganimals for their furs, or the use of pollutingproduction methods which have only local effects.
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