Ethical Standards to Compete Internationally for MNC

Ethical Standards to Compete Internationally for MNC

This is an assignment that discusses the Ethical Standards to Compete Internationally. Additionally, the are other questions that are to be answered.

Ethical Standards to Compete Internationally

Answer any Nine (9) out of Ten (10) questions. Each Question carries 10 marks. All the questions are in the attachment below

Question 1:
Firstly, should an MNC Reduce Its Ethical Standards to Compete Internationally?
POINT: Yes.  When a U.S.-based MNC competes in some countries, it may encounter some business norms there that are not allowed in the U.S. For example, when competing for a government contract, firms might provide payoffs to the government officials who will make the decision. Yet, in the United States, a firm will sometimes take a client on an expensive golf outing or provide skybox tickets to events. This is no different than a payoff. If the payoffs are bigger in some foreign countries, the MNC can compete only by matching the payoffs provided by its competitors.

COUNTER-POINT:  No. A U.S.-based MNC should maintain a standard code of ethics that applies to any country, even if it is at a disadvantage in a foreign country that allows activities that might be viewed as unethical. In this way, the MNC establishes more credibility worldwide.
WHO IS CORRECT? Use the Internet to learn more about this issue. Which argument do you support? Offer your own opinion on this issue.

Question 2

Secondly, ArcelorMittal was the world’s largest steel producer in 2018 accounting for more than 5% of global crude steel production. They entered into a joint venture with Sahaviriya Steel Industries, the largest steel producer in South East Asia having their base in Thailand. The joint venture enabled ArcellorMittal to have its steel distributed through Sahaviriya’s distribution channels in Thailand and other parts of South East Asia.  In addition, it could utilize Sahaviriya’s facilities to produce steel products that would be sold locally.  In return, ArcelorMittal provided information about the American and European steel market to Jamahiriya.

Required:
a.      Explain how the joint venture enabled ArcelorMittal to achieve its objective of maximizing shareholder wealth.
b.     Explain how the joint venture limited the risk of the international business.
c.      Many international joint ventures are intended to circumvent barriers that normally prevent foreign competition.  What barrier in Thailand did ArcelorMittal circumvent as a result of the joint venture?  Lastly, what barrier in the Europe did Sahaviriya circumvent as a result of the joint venture?

Question 3:
Thirdly, explain the origin of what triggered the financial crisis in Greece? Also, how this could have caused contagion effects throughout Europe had not proper intervention taken place. Is the crisis finally over?