PartTwoComparativeEnvironmentalFrameworks.pptVIP

* * * Copyright ? 2011 Pearson Education Part TwoComparative Environmental Frameworks International BusinessEnvironments and Operations, 13/e Global Edition  5-* 5-* Chapter Five Globalization and Society 5-* Chapter Objectives To identify problems in evaluating the activities of multinational enterprises (MNEs) To evaluate the major economic effects of MNEs on home and host countries To understand the foundations of responsible corporate behavior in the international sphere To discuss some key issues in the social activities and consequences of globalized business To examine corporate responses to globalization 5-* Evaluating the Impact of FDI FDI is Foreign Direct Investment The large size of some MNEs causes concern for some countries MNEs and countries need to understand the impact of FDI in home and host countries 5-* What MNEs Have To Offer 5-* Considering the Logic of FDI Need to consider relationship between those who make foreign investments (MNEs) and possible effects on receiving countries Areas to consider: Stakeholder trade-offs Cause-and-effect relationships Individual and aggregate effects 5-* The Economic Impact of the MNE Balance-of-Payments effects: Net import effect Net capital flow Growth and Employment effects: Home-country losses Host-country gains Host-country losses 5-* Why Companies Care About Ethical Behavior Instrumental in achieving two objectives: To develop competitive advantage To avoid being perceived as irresponsible 5-* The Cultural Foundations of Ethical Behavior Relativism vs. Normativism: do truths depend on the values of the groups or are there universal standards Negotiating between evils 5-* The Legal Foundations of Ethical Behavior Legal justification for ethical behavior may not be sufficient because not everything that is unethical is illegal. The law is a good basis because it embodies local cultural values. As countries tackle similar ethical issues, laws will become more similar. 5-* Ethics and Bribery Bribes are