Major Issues In International Business Today

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

2. 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

3. Social Issues In International
Business
The Common Social Issues while carrying out
International 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

4. 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

5. Ethical Issues In International
Business
The Common Ethical Issues are:
1.Employment practices
2.Human rights
3.Work Environment
4.Bribery and Corruption
5.Moral obligation of multinational firms

6. 6.Product Safety
7.Fair Price
8.Following Local Laws
9.Impact On Local Social Institutions
10.Fair Return On Investment

7. The Basic Labour Issues are:
1.Child Labor
2.Forced Labor
4.Health and Safety
5.Working Hours
6.Low Wages

8. 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

9. 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.

10. 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.

11. 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

12. 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.