Friday, September 27, 2019
International Management Essay Example | Topics and Well Written Essays - 1500 words
International Management - Essay Example As much as they try to deal with one culture in another country, they still experience others as they venture into other markets in search for cheap labor and raw materials. There are different moral standards within the countries, which brings challenges to the operation of multinational companies. Because of this, successful multinational companies require to solve these ethical issues to maintain their stability towards realizing the organizational goals. Ethical Issues Traditional Small-Scale and Large Scale Bribery Most of the developing countries lack strict laws to minimize bribery of the public officials. This is a contradictory to the practices by the developed countries where bribery is offense and punishable by law. In the developing countries, multinational companies experience ethical issues as they are forced to bribe foreign officers in exchange of the violation of the official duties. Foreign officers need bribes to offer services which they are meant to perform. This also implies in a case when the multinational companies fails to comply with certain provision and are forced to give bribery as a justification or failure. Similarly, multinational companies have to give hefty bribes in order to influence the making of policies or in case of a violation (MacDaniel, Hair & Lamb & 2007, 72). The issues of bribery are very rampant in the developing countries unlike in the developed countries where most of the multinational companies base. Because of this, theses corporations are operating in a dilemmas which they need to find a solution. Pricing Developing countries are characterized by unfair pricing and questionable invoicing where the buyer request for invoice showing a different price from the actual price of the product or service delivered. The regimes fix the corporation prices in order to face off local competition. The companies also dump their prices to below their mother countries and engage in the business practices, which are illegal in their home countries but are legal in their host country (Rendtorff, 2009, 436). These practices in pricing raise the ethical issues in which the multinationals companies operates in the host countries. As much as they want to remain relevant and capture the market share, they are forced to indulge in unethical activities to remain relevant to the laws and regulation governing business activities in the host country. Any corporation that wants to remain successful has to find a way of dealing with these ethical issues without being victim to the host nation by not complying with the law. However much it may pose a challenge more so when operating in a new business environment, the multinational companies have to strive, and do their best in managing their corporations to enable them meet their goals. Legal Issues Multinational companies face legal issues in their host countries different from their mother countries. Different countries operate under certain laws and vary depending w ith the framework in which the government requires them to operate. The legal challenges may come with undefined way of doing things that cause the company to close its operations or continue operating under inflexible and strict laws minimizing its full potential. In many cases, Legal issues affect the company in terms of penetrating the inner market and its relation with its stakeholders. Legal issues are binding and meant to influence the organization towards a certain direction.