Cultural Differences and Ethical Standards Readings explained that understanding

Question

Cultural Differences and Ethical Standards

Readings explained that understanding cultural differences are critical to success in international business. A country’s culture reflects and shapes its values, and each country adopts laws that reflect their prevailing ethical standards.

Consider the following scenario:
To assist the sale of your products in a particular foreign market, you are advised to pay a 10 percent commission to a go-between who has access to high-ranking government officials in that market. You suspect, but do not know, that the go-between will split the commission with the government officials who decide which goods to buy.

Then, respond to the following:

Should you pay the 10 percent commission? Justify your response.

Does it make a difference if your competitors routinely pay such commissions? Explain why this may or may not have an impact on your decision.

Do you think there should be more or fewer attempt to regulate international ethics? Why? Justify your answer using the research you have done in preparation for this assignment.

Write your initial response in 300–500 words.

Explanation / Answer

For International Business, you need to enter the market for gaining your market share and making your brand known to the people in foreign. There are loads of entrance barriers in other countries that you need to pass by for making your product available. Doing business ethically has two parts, ethical in terms of quality of the product and commitment towards your words and other side is doing the business ethically with moral values which doesn’t allow you to bribe someone for entering the market. The choice is yours. If you don’t pay commission, your competitor will pay and will gain the market share and soon developed their brand image among the customers. Customers are innocent, they don’t know behind the scenes. Therefore, it is going to affect you if you won’t pay the commission. On the other side, if you pay the commission considering it to be entry fees and conduct your business ethically towards the society at large, I don’t think so this would be considered it as unethical as of course it is not easy to run the business on your own terms. So yes, I should pay the commission for the sake of entry into the market. But choice of the products to sell and quality would be my responsibility towards the society. Yes regulating the international market has become more important following the globalization in order to conduct your business more ethically and in legal terms and to serve the customers in better way along with the laws of the land and doing good for the society. Therefore, government of the country needs to maintain the standard terms for conducting the business both for exporter and importer and should kept a eye among those officials who tends to take bribe or demand bride.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.