When a company goes abroad to one or more countries, that company immediately encounters several pressing questions regarding the culture of the country abroad. The employees also face the same questions, which would determine how they do their business. Often, cultures abroad are vastly different then those in the host countries.The Foreign Corrupt Practices Act passed by the United States is the only one of its kind in the world. In many counties around the world, especially in Latin America and Asia, bribes are a traditional way of business. This causes major problems for multinational companies as well as for their employees. If the managers abide my local customs, they would be guilty under the Foreign Corrupt Practices Act, and face jail time in the United States. This is just one instance of many which may cause problems in the global business world.The going abroad process is a long complicated process in which many aspects of the foreign countries business practices have to be looked into and studied. When a country is picked and the branch is set up, the business is now multinational and needs a foreign policy, which its employees need to follow. The old rule "When in Rome, Do as the Romans," does not usually apply. The employees abroad usually have to abide by the same rules as the host country, which may hinder the foreign branch.Multinational companies also have to consider social responsibility, especially in less developed countries. The company has to consider numerous stakeholders who include people and businesses in both the home country and the branch country. All the while, keeping the shareholders in mind. Donations to local charities in the branch country may benefit some of the local stakeholders, but would not help the shareholders in the home country. Multinational companies face decisions like this every day, and may not also choose the one which is best for all involved.There are four strategies...
