Mod 12
1) Multi-national corporations are becoming more common than we ever assumed. Most aspects of our products we use are made in a foreign country and then assembled and sold in an American market. It is not common that an American based product is made popular based on their sales in a foreign market place. We out source out business because it makes more sense and costs less money to operate which enables these companies to make turn a higher profit margin. As an American company we have a responsibility to make sure we do not tarnish our reputation as a good company, which can be changed with a blink of an eye. If the multi-national companies starts trying to bribe other countries businesses we are likely to cause more trouble for ourselves than good. The Foreign Corrupt Practices Act (FCPA), prohibits bribes which is a major responsibility that multi-national companies need to keep in mind when venturing into new territory. They also need to be aware of the labor laws and environmental practices these country need to adhere to; this can cause issues when trying to build a company and expand.
2) Wages of foreign countries are much less than what we have here; there labors laws are much different which can become more difficult for foreign based companies to try and implement themselves into new territory. When an American based company enters a new marketplace especially being that market place having costs wages that is less than ours makes it difficult to decide how you may proceed in making those offers to new employees that would be within reason. The question then becomes do you offer the new employees the same wages in America or do you offer them less because the market for the products in that country are not the same as those in America? It is the responsibility of the company to understand the wage situation before entering into a new market;