Issues in International Business

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.