Pleas give an analysis on the following case:

Ethical Dilemma: Royal Dutch Shell has been doing business in Nigeria since the 1920s and has announced new plans to develop oil and gas projects there. However, over the years, Shell has experienced a series of complex issues. Its operations are centered in Nigeria's Ogoni region, where the local citizens have protested Shell's drilling and refining activities, which harm the natural environment and reduce the amount of available farmland. Protestors also accuse Shell of extracting wealth from the region without adequately compensating local residents. Following sabotage of its facilities, the firm suspended some of its Nigerian operations and then came under pressure to divest its operations and pay reparations to the local people. Despite these problems, Shell has persisted in Nigeria. Management instituted various community development programs in the region, budgeted at $50 million per year. Using the ethical framework in this chapter, identify steps Shell can take to be a better corporate citizen in Nigeria.

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Chapter One Globalization is the constant ongoing economic integration and growing interdependence of countries that implies economic, political, and personal interconnectedness among countries, companies, and consumers. An example of this is the Instagram app, where more than 80% of its users are outside the United States. International trade is the exchange of products and services across national borders. The exchange is through exporting (outbound) which is the sale of products or services to customers located abroad from a base in the home country. An exchange could also be through importing (inbound) or global sourcing which is the procurement of products from suppliers located abroad for consumption or purchase in one's home country. International investment or also known as factors of production refers to the transfer of assets to another country or the acquisition of assets in that country. There are two essential types of cross border investments. The rst is international portfolio investment that refers to the passive ownership of foreign securities such as stocks and bonds and the second is foreign direct investment that is an internationalization strategy in which the rm establishes a physical presence abroad through acquisition of productive assets such as land, plant, equipment, capital, and technology. International companies are always being exposed to four major risk factors such as: O Cross-Cultural risk which is when a situation has been jeopardized due to a cultural misunderstanding. 0 Country risk which refers to the potentially adverse effects on company operations and protability caused by developments in the political, legal, and economic environment in a foreign country. 0 Currency risk which is the risk of adverse uctuations in exchange rates and commercial risk which arises from the possibility of a rm's loss or failure from poorly developed business strategy. 0 Commercial risk which arises from the possibility of a rm's loss or failure from poorly developed business strategies. The multinational enterprise (MNE) is a large company where business is performed by a network of subsidiaries located across the globe and are a major participant in international business. Small and medium-sized enterprises (SM E) are companies with ve hundred employees or less. Born global rms are entrepreneurial rms that initiate international business from or near their founding and nongovernmental organizations (NGO) are nonprots that serve as an advocate for the arts, education, politics, religion, and research. Firms will internalize for a variety of reasons, but major reasons are to increase sales/prots, better customer service, access lower cost production, optimize sourcing activities, develop economies of scale, confront competitors, develop relationships with foreign partners, and gain access to new ideas to improve their products or services. Chapter Two Globalization of markets refers to the gradual integration and growing interdependence of national economies and allows companies to outsource value-chain activities. Avalue chain is a sequence of activities that add value to the rm's performance such as developing, producing, marketing, and servicing a product. Driving Forces of Globalization: 0 Worldwide reduction in barriers to trade and investment I National governments tend to reduce trade and investment barriers and has accelerated to global economic integration I Example: tariffs on industrial/medical equipment and other products have declined to nearly zero to encourage free international exchange. 0 Market liberalization and adoption of free markets I By opening free markets, this opened the world to freer international trade and investments while encouraging economic efciency and attracting massive foreign capital in national economies. I Example: India and South Korea embraced free market norms o Industrialization, economic development, and modernization I Developing countries went from being low-value commodity producers to competitive producers and exporters of premium products such as electronics and aircrafts. This type of economic development results in increased income and living standards which is an important measurement of gross national income (GNI) per person I Example: Countries that are low level of globalization have a low level of international trade. 0 Integration of world nancial markets I Financial market integration makes it possible for internationally active rms to raise capital, borrow funds, and engage in foreign currency transactions. This allows the firm's to follow their customers to foreign markets. I Example: the SWIFT network connects with over 11,000 nancial institutions in around 200 countries. 0 Advances in technology I Advances cross-border trade and investment Information Technology (IT) is the science and process of creating and using information resources. Firms of all sizes benefit from IT. The systems help create an interconnected network of customers, suppliers, and intermediaries around the world where international business is affordable for all rms. Digitalization is the enabling or transforming of business functions, operations, and activities by leveraging digital technologies and digitized data. This is possible due to advanced |T technologies and is transforming interactions among customers, employees, business partners, and investors by connecting locations, products, services, and data. Example: Amazon is a global supplier Example: Amazon is a global supplier The internet opens the global marketplace and connects billions of people and companies. This is a great resource for rms that lack international business resources. The internet of things refers to machine-to-machine connectivity online and the usage of smartphones allow people to be on the web anywhere. Digitalization and computer-aided design (CAD) of products, robotics, and production lines have totally transformed manufacturing by reducing production costs. When it comes to transportation costs, if costs are high, management may decide to manufacture their own merchandise in the market. As transportation technology advances, shipping times and costs have been signicantly reduced. Transportation has been revolutionized, but there is a posing threat to the environment due to energy usage. Dimensions of Globalization: 0 Integration and interdependence of national economies I Firms develop multi country operations through trade, investment, geographic dispersal, and coordination of value-chain activities. 0 Rise of regional economic integration blocs I Regional economic integration blocks consist of groups of countries that facilitate reduced trade and investment barriers among themselves. I Example: NAFTA 0 Growth of global investment and nancial ows I The free move of capital extends economic activities across the globe. 0 Convergence of consumer lifestyles and preferences I Consumers worldwide are increasingly spending their money and time in similar ways. I Example: Shoppers in New York and Paris have similar spending habits. 0 Globalization of production I Global competition is forcing rms to reduce their costs of production. I Example: Auto industries move to a low labor cost location. 0 Globalization of services I Banking, hospitality, retailing and more are undergoing widespread internationalization. I Example: REMAX is in 100 countries Firm-level Consequences: Globalization compels rms to organize their sourcing, manufacturing, marketing, and all other value added activities on a global scale which can be performed in the home country or abroad. Firms have the ability to choose where in the world they want to locate or congure these value-added activities and internalize these activities to reduce the costs of R&D and production or gain closer access to customers. Firm-level Consequences: Globalization compels rms to organize their sourcing, manufacturing, marketing, and all other value added activities on a global scale which can be performed in the home country or abroad. Firms have the ability to choose where in the world they want to locate or congure these value-added activities and internalize these activities to reduce the costs of R&D and production or gain closer access to customers. Societal Consequences: Globalization was a major factor in the global recession and nancial crisis where critics complained that it interfered with national sovereignty and the ability of a state to govern itself without external intervention. This is often associated with offshoring, the relocation of value-chain activities to foreign locations where they can be performed at a cheaper cost or independent supplier. Globalization tends to decrease poverty but can widen the gap between economic classes. Chapter 3 in our textbook provides a comprehensive exploration of the vital role culture plays in the realm of international business. To kick things off, we are introduced to the concept of culture, a complex amalgamation of values, beliefs, customs, arts, and various elements that dene a society's identity. Think of it as the rich tapestry that serves as the backdrop for all global business interactions. This chapter sheds light on the concept of cross-cultural risk, emphasizing the potential pitfalls that arise when individuals from diverse cultural backgrounds fail to communicate effectively, which can lead to conicts and misunderstandings. It's crucial to understand that culture is not a matter of absolutes, right or wrong; rather, it's relative, varying among groups rather than individuals and molded by the social environment as individuals mature. At the core of these cultural variations lie values and attitudes, which exert a profound inuence on human behavior. One central idea introduced in this chapter is the metaphor of the cultural iceberg. Just as the majority of an iceberg remains hidden beneath the surface of the water, only a fraction of culture is visible in the form of outward behaviors, such as customs, manners, and our perceptions of personal space. Beneath this visible layer, culture comprises deeper elements like values and attitudes, which are of paramount importance yet not immediately apparent. Furthermore, the chapter examines how different cultures perceive and manage time, distinguishing between monochronic cultures that adhere strictly to schedules and polychronic cultures that embrace a more exible approach to time. Recognizing these differences is critical when engaging with individuals from diverse cultural backgrounds. The chapter also explores the signicance of symbols and material artifacts, including technological systems, within a culture. It delves into the intriguing concept of how colors hold different meanings across societies, underscoring how diverse cultures attribute varying signicance to distinct colors. Additionally, social structure is investigated as an integral aspect of culture, encompassing elements such as familial roles, social groups, social hierarchy, mobility, and literacy rates, all of which shape a society's culture and its interactions in the global business arena. Language emerges as a pivotal dimension of culture, serving as both a reection and a medium of cultural values. With nearly 7,000 active languages worldwide, language diversity has a profound impact on international business. Idioms, expressions with gurative meanings beyond their literal interpretations, offer valuable insights into cultural values and norms. The chapter also emphasizes the importance of nonverbal communication, including facial expressions and gestures, in conveying unspoken messages, highlighting the need to interpret these cues in cross-cultural interactions. Religion's inuence on culture and, consequently, on business and consumer behavior is thoroughly examined. The chapter discusses examples such as the "Protestant work ethic," a theological inuence emphasizing diligence and personal success, which played a foundational role in the development of capitalism in certain cultures. Various world religions are analyzed to illustrate how they have shaped diverse communities, Religion's inuence on culture and, consequently, on business and consumer behavior is thoroughly examined. The chapter discusses examples such as the "Protestant work ethic," a theological inuence emphasizing diligence and personal success, which played a foundational role in the development of capitalism in certain cultures. Various world religions are analyzed to illustrate how they have shaped diverse communities, particularly within the business sector. The chapter presents an array of theories and analyses related to culture. Cultural metaphors are introduced as tools to comprehend attitudes, beliefs, and actions, with American football serving as an illustrative example. The concept of high- and low-context cultures, proposed by Edward T. Hall, is explored to elucidate variations in communication styles. Diverse cultural perspectives on ethical situations serve as evidence that ethical ideals are culturally contingent. Furthermore, Hofstede's typology of national cultures is examined, encompassing distinctions related to individualism, collectivism, power dynamics, aversion to ambiguity, masculine and feminine qualities, long-term versus short-term thinking, and indulgence versus moderation. The chapter looks into the practical implications of these cultural insights within the context of business. It highlights the contrasting approaches of deal-oriented and relationship-oriented cultures when conducting business transactions. For instance, it draws attention to the Chinese concept of "guanxi," which places signicant value on building social connections for mutual benets. The chapter also provides managerial principles for achieving success in cross-cultural business interactions, emphasizing the importance of avoiding cultural biases, developing cross-cultural competencies, gaining specic knowledge about other cultures, and engaging in critical event analysis to gain a more nuanced understanding of diverse perspectives. Cross-cultural competence, it emphasizes, necessitates a diverse set of personality attributes, including adaptability, perceptiveness, and a tolerance for ambiguity. Chapter 3 of our textbook serves as a comprehensive exploration of the intricate relationship between culture and international business. It provides a multifaceted understanding of culture, encompassing values, beliefs, customs, and various elements that dene a society's identity. The chapter underscores the challenges posed by cross-cultural risk and emphasizes the relative nature of culture. It delves into the visible and hidden elements of culture using the cultural iceberg analogy, explores the role of language, religion, and symbols, and offers a rich tapestry of theories and analyses to deepen our comprehension of cultural diversity. Moreover, it sheds light on the practical implications of these cultural insights in the global business arena, emphasizing the importance of cross-cultural competence and understanding for success in an increasingly interconnected world. Ethics, corporate social responsibility (CSR), sustainability, and governance form the bedrock of international business, shaping critical decision- making processes and guiding a company's approach to these decisions. Ethics, the cornerstone of these principles, encompass moral beliefs that dene society's notions of right and wrong. Corporate social responsibility, conversely, signies a business's responsibility to adhere to ethical standards, as dened by various stakeholders, including shareholders and the local community in which the business operates. Sustainability measures a company's capacity to fulll current needs without compromising the future, balancing economic, social, and environmental considerations. Finally, corporate governance delves into the intricacies of how an organization operates, encompassing management, conduct, and regulation while providing a framework for understanding the other three aspects. For businesses, adhering to ethical standards not only aligns them with societal values but also bestows signicant advantages, including enhanced collaborations and successful international ventures. Acknowledging the prevalence of unethical behavior globally underscores the importance of avoiding regions with negative ethical environments, making it imperative for international businesses to comprehend the ethical standards and dilemmas within their target cultures. In the realm of ethical belief systems, relativism posits that ethical standards are subjective and vary by location or perspective, while normativism advocates for universal ethical standards that remain constant regardless of location. International companies often adopt a blend of these two approaches, ensuring adaptability and consistency essential for effective international business. Corruption emerges as one of the most widespread unethical behaviors worldwide, where improper tactics grant companies unwarranted power or inuence, often at the expense of others. This unethical conduct takes various forms, including bribery, embezzlement, fraud, extortion, blackmail, and money laundering. Beyond corruption, unethical practices extend to harmful work environments, detrimental global sourcing, illicit products or marketing, and intellectual property infringement. Sweatshops, characterized by poor working conditions, low wages, and health hazards, represent one of the most common harmful work environments. Workplace harassment, including sexual harassment and discrimination, further plagues workspaces globally. Harmful global sourcing raises concerns about environmental issues and human rights violations associated with overseas suppliers. Illicit products and marketing encompass the promotion of faulty or dangerous products, while intellectual property infringement involves unauthorized reproduction of copyrighted or patented products. Corporate social responsibility aims to maximize prots while beneting society and the environment. Sustainability-minded companies pursue economic success while considering their social and environmental impact. Corporate governance is declared through guiding values or rules, often outlined in documents like a code of ethics or a code of conduct, setting expectations and standards for employee behavior, including workplace etiquette