A look into globalization and why organizations should consider international business.
Domestic business can be veiwed all around us and can be defined as coporations that operate mostly or entirely within the United States. Domestic companies still rely and factor in opportunites that can be gained from entreprenuership in foriegn markets. These companies still import and export different supplies and products but they make up a relatively smaller portion of overall business activites (Fidelity, 2021 ). Domestic business are also goverend by US laws. An example of a domestic business would be H.E.B which has locations in Texas only. This dose not mean that H.E.B completely avoid business outside of Texas or even the United states but majority of the business is conducted and focused in its home country.
International business relates to any situation where the production or distribution of goods or services crosses country boarders (Dunung, 2019 ). International business consist of three different types business, government and nongovernemental organizations. The globalization of markets gives international business more opportunites to blossom and takes place when trade barriers fall and consumer preferences change (Dunung, 2019 ). One great example of an international business would be Apple. Apple is headquatered here in the United States, but they have multiple operations all over the world and started in 2003 with their Tokyo, Japan location this created a global market share unlike the corporation mentioned above, H.EB.
Businesses and specifically for-profit businesses have a social and environmental mission to abide by and uphold while conducting business.
Social and Envrionmental:
Working hard to help solve the world’s environmental problems and, importantly, also helping those who buy our products to make more responsible choices (Dunung, 2019).
Product Mission:
To make, distribute, and sell the finest quality products with a continued commitment to promoting business practices that respect the Earth and the environment (Dunung, 2019 ).
Economic Mission:
To create long- term value and capture the greatest opportunity for our stakeholders by delivering sustainable profitable growth in sales, earnings, and cashflow in a global company built on pride, integrity, and respect (Dunung, 2019 ).
Ethics In International Business
How to observe and make ethical business decisions.
Awareness is extremely critical to the success of any buisness but especially in international business settings, the best way to enter a new market is with a strong knowlege of the market’s ethics. Ethics are normally questioned in the wake of extreme disater caused by the daily practices and or negligence of big organizations such as the BP spill that happened in 2010. At it’s simpliest level organizations have a duty to those that they serve and interact with to cause no harm and assist with giving back to society.
Businesses have to make decisions on a day to day basis and it can be hard to create ethical decisions while sorting out the multiple task that go into running an organization. To combat that there is an ethical decision making model that can guide managers, and executives in the right path.
- Follow your instinct or involve others to considered the decision.
- Ethical decisions are not always law abiding and can require another prospective for insight on how ethical the decision is.
- Gather information
- Gathering information beyond those who may have a bias can also make the decision easier.
- Evaluate alternative decisions
- Based on the type of approach there a few ways in which you can make pick the best decision:
- utilitarian approach- This decision yeild the most good and the least harm(Dunung, 2019)
- rights based approach– This decision is based on which action respects the rights of everyone involved.(Dunung,2019 )
- fairness or justice approach- This decsion approach is based on which action treats those involved fairly.(Dunung, 2019)
- Common good approach- This decision approach debates which action gives the most to the quality of life of the people affected.(Dunung, 2019)
- Virture approach- Finally this approach is based on the character strengths you value you the most. (Dunung, 2019 )
Ethical decisions ensure that consumers and the environmental relationships are being nurtured and strengthed while making revenue and insure while domestic businesses and international businesses maintain social accountability and environmental responsibility.
Sources
Dunung, S. P. (2019). Global Business Management v1.0. Flatworld.
Investments, F. (2021). Domestic vs. international vs. global companies. Fidelity. Retrieved July 3, 2022, from https://www.fidelity.com/learning-center/trading-investing/fundamental-analysis/domestic-international-global-companies
Thee Roaming Rose 