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International Business morality

eople of the countries they are dealing with, they should be aware of the people in these nations that they are affecting by means of their business within those borders. A clear example of the all-to-common disregard for the welfare of those of foreign countries is that of the Nestl corporation and its profit maximizing techniques in third world nations. Because of declining sales of infant formula in industrialized countries, Nestl (and other corporations) made a decision to aggressively market its product in developing nations and thus open up new arenas in which to become profitable once again. Despite the fact that these countries lacked clean water, adequate sanitation, and sufficient education (all of which are essential to proper and safe use of infant formula), Nestl continued to sell its product. As a result, infant mortality rate increased significantly in these countries (EDB 606). This situation was clearly an abuse of universal human rights and should be dealt with as such.In Defense of Adhering to Foreign Practices in Foreign MarketsWhen confronted with the problem of whether or not multinational companies should act in ways which are consistent with the ideologies of the host country in which they are doing business, it’s a basic reaction governed by our human nature to say that such firms should, in fact, conform to the indigenous ideas of that foreign nation (EDB 515). Much like my argument supporting the ideas contradictory to this view, this position will be defended using two basic axioms.One of these beliefs is essential to the existence all nations. Namely, it is the existence of something called “state sovereignty.” In brief, state sovereignty is the incontestable right of every nation to make its own laws and to govern as it sees fit, free from external control. In effect, if the practices of a multinational business is contradictory to the ethical standards of its host country, those ...

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