Ethical Dilemma: Suppose that you have been hired by GM Global, a technology company specializing in the

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Ethical Dilemma: Suppose that you have been hired by GM Global, a technology company specializing in the creation of pest- and droughtresistance plants. They are in a delicate industry, so GM Global emphasizes social responsibility in its business dealings and uses three foreign market entry strategies: exporting, joint ventures, and FDI. Exporting means the sale of products to customers located abroad, usually under contract with foreign intermediaries that organize marketing and distribution activities in local markets. Using joint ventures, GM Global partners with foreign firms to access their technology, expertise, production factors, and existing permissions to grow and market GM products. Using FDI, GM Global invests funds to establish factories or other subsidiaries overseas. Each of the strategies—exporting, joint venture, and FDI—is vulnerable to particular types of ethical dilemmas, and top management has directed you to identify and describe the most typical ones. Using the ethical framework and other material in Chapter 4 as a guide, what types of ethical problems might arise in each type of entry strategy? Which entry strategy is most likely to give rise to ethical problems? Justify your answer. 1239

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International Business The New Realities

ISBN: 9781292303246

5th Global Edition

Authors: S. Cavusgil, Gary Knight, John Riesenberger

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