9) Analyse the ethical issues in international trade and business.

Print Friendly, PDF & Email

Topic: Dimensions of ethics; ethical issues in international relations and funding

9) Analyse the ethical issues in international trade and business. (150 Words)

Reference

  • Jaya Swatantra

    Ethics issues are those behaviours which ensure awareness and concern for the future by taking right course of action in each particular situation.In this globalisation era international trade and business must abide by it.

    These ethical issues are

    Honesty,integrity,compliance,professionalism-These can be termed as rigid set of ethical behaviour because these behaviours should not be compromised in any situation.

    Some issues like will to understand other culture’s values,remuneration policies,may be flexible as per the demand of the situation.

    In order to implement ethical behaviour for the long term every individual and every corporate body must outline its ethical values ensuring understanding of ethical values.Employees of every organisation must participate in framing a corporate code of conduct despite personal views of company’s leader where every individual and company must monitor its compliance.Recent WTO talks in Nairobi,Japan selling its nuclear arsenal to India lacked some very important ethical issues of unbiased attitude and giving space to others to flourish also.

    • Jaya Swatantra

      Please review it really feels good to start the day with ethics….

      • SHIV

        some point add that how to effect business with cultural diversity.

        • Jaya Swatantra

          please put some light … unable to contemplate

    • SRP(Sukladhwaj)

      You should elaborate the issues a little and conclusion could be shortened.Please review mine

      • Jaya Swatantra

        Thanks for the review… ok sure

  • OPTIMUS PRIME

    Concerns in international trade and business:

    1. Wealthier countries generally seek to protect their own markets and agricultural sectors against cheap exports from poorer
    countries. This can be seen as being overly restrictive on poorer countries. It is known as Protectionism in trade policy.
    2. Critics have argued that WTO is unethical for several reasons e.g places economic considerations ahead of concerns for the
    environment or human rights,takes power away from individual nations, is undemocratic.
    3. There is no international ethical code of conduct, accepted and followed by all the countries; lack of governments’ initiative to create ethical cooperation framework and thus to enhance ethical behavior in international business;

    Way forward:

    1. There is need of an international ethical code of conduct, accepted and followed by all the countries. Every individual and corporate
    body must outline its ethical values; should ensure understanding of ethical values and belief in their effectiveness and importance; must participate in creating a corporate code of conduct.

    Developing regions, look to international trade as a potential solution to their economic problems. They want a ‘fairer’ system which lets them trade with wealthier nations and earn more money, so that their own economies can grow. This would then assist developing countries in funding their own infrastructure, education and healthcare.

    • Achilles

      Can we add: the rise of Regional groupings like TPP and TTIP which are undermining the multilateral institutions in place, thereby may create a oligopolistic situation in international trade

      • OPTIMUS PRIME

        sorry for late reply………………yes u can add………but when we talk about ethics in international trade…things just come in mind–> WTO issues, IPR,GI ISSUES, SUBSIDIES, food security, poverty,poor farmers sucides etc…………

    • numerouno

      can we also add mnc lobbying , illegal trade of animal body parts, trade on GM crops, dumping by china, sanctions imposed by developed countries on developing ones to create pressure like EU did to india lately., generic drugs shd be allowed for very poor nations. trade of arms and ammunition by developed nations to the rebel groups while playing there strategic games ??

    • yogi

      Hey, good answer,
      can u plz review mine, i have added some other dimension and doubt whether they can be included or not, plz guide

    • Ace.Reviewer

      Good answer.. but when we write in pints we must write a sub heading. Here we may also include:
      Ideological clash, giivng subisdy at home but askig others not to do so, hidden subsidies, outsourcing dangerous processes like polluintg activitirs, reverse engineering and flooding markets witj predatory prices, forming closed market groups to prmote interests ( TPP, TATIP), lobbying, currency devaluatiin, pushing econonic agenda under diplomacy, neo liberalism and colonialism…

      • kumar

        superb sir//

      • snjiv

        After long time…!!

    • Jaya Swatantra

      nice answer… if possible review mine

  • sankar

    Ethics are the principles which help a person to differentiate between right or wrong, infidelity or fidelity, sustainable and short-term etc. Likewise, the ethical issues in internal trade is that it is an ingredient of corporate traits or attitude used as code of ethical behaviours. In this context, there are three important norms of ethical behaviorus in International trade;
    first, ethical behaviour combined with skills and professional ensures sustainable development, rather than a short-term benefit. second, It presents a healthy and cooperative environment for each party involved in the deal therby making them comfortable. third, acting in accordance with moral values is crucial for deserving clients’ attention and support and achieving a significant competitive market advantage.
    However, every culture and nation has its own values, customs, traditions and history possessing accordingly its own ethical values. Each region of a country and each country of continent and even between different continent, there is difference in ethical values and it is no blindly accepted by other continent, neither it is applied across the world.
    So, a question arises that ‘what should be a common code of professional, cooperative and trade ethical conduct that is greatly followed by every involved entitity. what should be the next step?, is the followings;
    -Every individual and every corporate bodies must outline its ethical values and ensure understanding of ethical values and belief in their effectiveness and importance.
    -Employees of evey coporate bodies must participate in creating a corporate code of conduct, based on corporate culture rather than individual ones and monitor compliance with the outlined values at all times
    There must be a provision of two types of ethical values viz rigid and flexibel. In rigid category, there are those values which can not be renounced under any circumstances such as honesty, professionalism and integrity. And on the other hand, in the flexible ones, those values which can be liberalised or interpreted in different ways as per the situation under it such as cultures’ values and remuneration policies, transportation costs, storage costs, price fixing etc.
    In this way there may be common code of conduct to be followed by every business entity keeping in view with larger interest of people of world in particular and nations in general. It promotes a ‘give and take’ approach and highly respect to humanity. It promotes environment of evergreen attitude in internal trade.
    Thus, it heralds a new era of cooperative, sensitive, humane, ethical inclusive and sustainable trade environment based a greater common consensual tool.
    plz rvw frnds

  • Achilles

    q is about ‘international trade and international business’ OR ‘international trade’ and ‘business’ ? Clarify..anybody

    • aashish 2000

      Its international trade and international business

  • Disco Dancer

    International trade & business require ethical conduct to maintain moral values in corporates which could led to sustainable development. Professionalism, honesty, compliance would led to a healthy & transparent business environmnet.along with individual’s own development which they can bring to personal life, interaction with staff etc

    Problem with ethical issues in international trade & businesses is that different country has its own code of conduct depending upon culture, aspirations etc. This degrade the idea of a common code for healthy interaction.

    Now countries could take following steps to solve this problem:

    1)Individual ethical codes: Each corporate should have its own code of conduct categorized on the basis of rigid (Honesty, compliance, integrity) & flexible(understanding other culture, remuneration), which would determine the importance of its values.

    2)Compliance: Corporates should understand the importance of ethical behavior & should take compliance measures to protect it

    3)Foreign bodies interaction: When traders from different country would meet then they would better understand each other codes & also each country would try to understand other culture leading to suitable business environment.

    In wake of a stagnant economy, it becomes essential to have ethics in international trade as it would not only led to robust development but also would increase the mutual trust of different people residing in different part of world.

    • SRP(Sukladhwaj)

      Good one ..please review mine

    • yogi

      this one looks like the ethics answer, nice choice of words
      can u plz review mine, i m in doubt whether my answer is as per the demand or not

  • Rishi

    PR

  • Sampat Dash

    Ethical Behavior With Skills and Professionalism Leads to the Sustainable development. But In case of International Trade

    Has been Violated In many aspect.

    Issues.

    1. International Trade is a cooperation between developed , developing and Under devloped Countries which has different aspect

    for the Trade and Different code of Ethics In term of Infrastructure , Produce and Literacy.

    2. Dominance of the Bigger Player Often Lead to Unethical Practice.

    3. Unexplored and Traditional Human Labor.

    4. International Organisation Like WTO Has Unable to satisfy the Need of All.

    5. Regional Trade Organisation Like TPP , ASEAN, BRICS creats a barrior among different countries as It Permits Only to the Limitied countries.

    Some Improvements Can be drawn by bringing certain changes like

    1. WTO negotiation Should Not be stringent for the Poor Asian And African Nations .

    2. Technology should go hand in hand with the Human Capital .

    3. Developed Nation Should Target to Explore the Globe Instead of Giving benefits to the limited countries.

    Finally Trade Should be Done Keeping in mind the National Interest and Problems . Bringing Ethical Values in Trade Can Mitigate the Difference

    between the Economically Poor and Rich countries upto some extend.

  • bhaskar goel

    International trade and business currently follows a consequential moral reasoning where each party is focused on the morality in the consequences of an act and more often than not the parties measure this morality in terms of concessions gained at the expense of the other. This might work out in the short term with the shoving of certain terms down somebody’s throat but in the long run it can only foster resentment.

    Such resentment is quite evident if one goes by the Doha Development Agenda which has been hanging fire for some 15 odd years and may actually had been junked completely in the latest Nairobi round of talks.

    A way forward is to define a set of ethical standards which would be universal as currently there are no such standards. These standards would be divided into fixed and flexible. The fixed standards would for example be professionalism , integrity and honesty etc while the flexible standards for example could be the renumeration received in country according to the social realities there.

  • yogi

    Please review!!
    Trade between the Mesopotamian and Indus Valley civilisation, Silk Route Trade has now assumed a complex form at global level and involves the following the ethical issues.
    1.Human rights related: Some illegal forms of trade human trafficking, trade in drugs, human organs, etc. are unethical as
    their inherent nature of being inhumane are being dealt with UNHRC.
    2. Intellectual Property Rights related issues.
    3. Environment related : trade in hazardous substances and e-waste. Basel and Stockholm Convention dealt with these issues
    under the umbrella of environment ethics.
    4. Food security: The conflict of interest between those favouring “limits on agricultural subsidies”, “Free Trade Agreement “and
    those having food security problem. SPS(Sanitary and Phytosanitary Measures) tries to ensure food safety and protection of plants species.
    5. Most favoured Nation status: by some countries is perceived as promoting discrimination/biased treatment in international
    trade.
    6. Dumping of cheap products clashes with the locals’ livelihood and the domestic economy.

    To ensure equality, protect human rights and environment, and to foster the spirit of universal brother hood/sisterhood intergrated
    approach must be followed in international trade and business.

    • According to me, connection between ethics & trade issues is missing.Instead of so many points just focus on key issues related to ethics…

      • yogi

        thanks for review
        point noted
        KWAR..:)

    • Operation Writing

      1. u need to connect issues with ethical perspective like u did in 1st poiint…but not in others
      2.i don’t agree with ur point 5
      overall fair answer
      KWAR.. 🙂

  • SRP(Sukladhwaj)

    Along with the economic issues involved in international trade, there are sometimes ethical questions which arise. Most common ethical issues involve employment practices, human rights, environmental regulations, corruption and the moral obligation of MNCs.

    There should be minimal acceptable working standards both in wages and environment, and audit of foreign subsidiaries and subcontractors is carried out on regular basis.

    Rights we take as granted such as freedom of speech, association, assembly are by no means universally accepted. Ex- China’s human rights record, Royal Dutch shell in Nigeria.

    Environmental regulations are inferior in host nations than in the home nation. Specially it occurs when individual overuse any resource which is common to all. Ex- Oil companies in Nigeria, Mercury factory in India etc.

    Sometimes multinationals abuse their power for private gain sidelining their moral obligations.

    So, it is the responsibility of both host and home members along with the citizens of the planet to have regular checks on every international trade and business for a sustainable prosperity of human being.

    • Jaya Swatantra

      nice answer with apt examples….but what is Royal Dutch shell all about..

      • SRP(Sukladhwaj)

        Companies’s unexpected bias calculations, environmental pollution and human rights violation in Nigeria

  • atul vashishth

    Guys plz review

  • atul vashishth

    Plz review

    • Charulata Saini

      good. point on black money is good.

  • ViVi

    International trade and business have ofetn been dubbed as the tool of the rich to supress the poor countries.
    The international business needs to be concrned about such allegations.It needs to understand various ethical tenets which are involved in international trde like:
    1. Trade should not lead to imperialism. All nations must be allowed to grow and prosper.
    2. The technologically advanced nations should not try to monopolize the market of lss advanced countries by dumping ther goods.
    3. Least dveloped nations should be given free access to internatinal markets for their quick development.
    4. Questions of subsidies in agriculture should be dealt with humane understanding . i.e by taking into account the socio-conomic background of the nation. Arm twisting should be avoided.
    5. Trade of hazardous goods like biological waste, e-waste should be curtailed. This turns the undeveloped nations into the dumping center of developed world. Such trade is unsustainable.
    6. IPR and patents regime should be develped with proper inclusion of all member nations of UN and should not be a exercise conducted by the developed nations to fulfill their vested intrest and apprpriate the world resources.

    These concerns are very legitimate and needs to be dealt with greta diligence.
    Modrn world is getting more integrated dya by day and clear delniation of ethical practices would be necesssary for reducing future conflicts.

    • Jaya Swatantra

      nice answer but a little polish is needed in intro part

  • OK

    Ethics, the
    journey of What ought to do? Looking at the ethical aspects of International
    Trade and Businesses:

    It’s
    heartening to note that, Global acceptance of concepts of Common But
    Differentiated Responsibilities and Special and Differential Treatment, is a
    positive start.

    But
    unfortunately, this whole world has been divided into developed and developing
    nations, where best of the minds are deliberating on the artificially created
    dilemma between Profits and Poor.

    Increasing
    hegemony of ones on others to ensure the market, competition, profits, by
    completely ignoring the basic fundamental fact that government is there not for
    flourishing businesses, but to ensure the welfare of the society.

    The basic
    fundamental unit of trade is Businesses, and the unethical practices are deeply
    rooted in their base. Human rights violations, unhygienic working environment,
    dis-proportionate value capturing vis-à-vis value addition, exploitation of
    monopoly, and flooding the sub-standard products are the many issues with which
    our whole world is grappling these days.

  • Deepak

    Ethics are compromised in international Trade and business because the ethical values of different entities are contradictory in nature as we seen in the WTO agrements where the rights of poor and underdeveloped countries are at risk for the sake of few developed countries business and trade policies.

    Importance of ehical values are

    1.It ensures sustainable devloment rather than a short term profit

    2.It improves cooperation not only in the field of economic and technology but also in the ethical domain so that respect for individual idealogy is enhanced.

    3.Ensures the client’s attention and support.

    Ehical values can be achieved by the following ways:

    1.Every individual and every corporate body must outline its ethical values and have to follow them strictly

    2.Employees of every organization must participate in creating a corporate code of conduct, which in this case definitely represents corporate culture, rather than only personal views of a company’s leader;

    3.All the ethical values must be divided in two categories – rigid and flexible. Rigid are those values which cannot be renounced under any circumstances (honesty, integrity, professionalism), and flexible ones, which are those moral principles which may be interpreted in different ways in different situations (will to understand other cultures’ values, remuneration policies).

  • Sepoy No 1446

    During time of colonialism major western powers controlled Asian and African countries. At that point of time,international trade was used as a mean to annex the new areas. Sir Hawkins from East India Company(EIC) got farman from Jahangir to establish a factory but later the same company became the oppressor of masses. Thus one can say Imperialism was possible due to unethical application of international trade and commerce.

    In contemporary world,ethical issues in international trade and commerce can be found in following areas:
    1. Trade negotiations at WTO,especially regarding rights of domestic farmers of third world countries,failure of Doha development agenda is its biggest example.
    2. Bio-piracy which takes away natural rights of indigenous people over traditional knowledge.Example: TKDL of India is fighting against this
    3. Controlling trade routes and imposing sanctions to “teach lesson” to a country. 1973 oil embargo,bombing of Iraq and recent American ban on Iran ignores the pain and travesty which local people have to suffer.

    • Ravi

      You have given latest example . Good one .. Keep Writing

    • Ravi

      Review mine also..

  • Ethical values play important role in International trade in accordance with economic values. But nowadays ethical values missing form international trade as
    1) Absence of ethical code of conduct led to conflict between developed & developing countries due to opposing interest of each other
    2) Most of countries focusses on its interest at the cost of other poorer/developing nations
    3) Many corporate sectors of different countries focusses on short-term profit at the cost of environment
    4) Lacks of governmental imitative in international deals for ethical value
    5) Professionalism in trade brings disastrous effect impacting ethical values of individuals

    To bring ethical values in international trade –
    1) There should be uniform ethical code of conduct for international deals in compliance with honesty,integrity,moral values
    2) Such uniform code of conduct helps to boost trust & create healthy environment during deals
    3) Ethical values with professionalism & skill led to sustainable development compliance with long-term goals of nations
    4) Individuals ethical values helps to create corporate ethical code resulting ethical values during corporate deals

    For development of developed, developing as well as poorer countries,uniform ethical code along with skills & professionalism is must. It also foster international trade & poorer countries by mutual trust with ethical values

    • Ravi

      Well written . you have analysed well .

    • Ravi

      Review mine also..

    • yogi

      as per demand of the Qn ur answer is complete and looks an ethics answer
      just add few examples here and there to fetch more marks
      plz review mine as well..:)

  • Operation Writing

    plz review

    • yogi

      good that u have categorised the dimensions and also gave examples
      did not get ur first point and the examples stated->plz reply and review mine too,
      KWAR..:)

      • Operation Writing

        in that point i want to say that big MNCs take the advantage of inferior work conditions in Host nation…and didn’t give as much facilities and remunerations as they do in their own nation..
        ethically they should provide as their own responsibility.
        hope u got my point…

  • Ravi

    Plz. Review .. Critics are welcomed ..

    Ethical issues are very crucial in international trade as it can boost or impede relations between two or more nations . Apropos to facts it is observed that there is no common conduct of ethical values in any international organization or nation that makes this subject utmost importance . Some of the reasons to support this subject are :-
    1. Creating friendly environment – If this matter is taught to individuals of a company then robust nexus can be created that leads to more participation in discussions along with mutual understanding.
    2. Proliferation of Sustainable Development – If any firm provides longer services rather than short term { money making } services may enhance the growth much effectively .
    3. Less Probability of Recession – When every nation or firm indulged in trade and business with other countries it may reduce the possibility of recession and also promotes economic development along with high standards of living . Hence its helps in expanding the business of individual or party.
    4. Understanding Responsibility – Ethical values with morals also reminds the duty of employees or delegates towards their company or nation that leads to nobility along with loyalty .

    Conclusion – Hence it should be exercised by everyone as it improves aptitude , attitude in different challenging conditions.

  • charbak sankar

    Due to increased globalisation ,in recent times ,there has been more interaction between corporates and govt agencies to do business internationally .When it comes to ethical norms in global business ,no universal standard is present and it is impossible to frame a standard ethical norms at international level with uniformity .This is due to different ethical values prevailing in different countries due to difference in culture ,history ,social norms .
    But it can be possible to make a consensus to generate a general norm or basis for a agreed criteria .Private as well as govt business entities can follow a common basic ethical norm and it will cause
    1)Sustainable development of business relation between countries in international sphere
    2)It will build trust and healthy atmosphere in business
    3)Exchange of values between different countries
    This can be achieved by inculcating basic ethical norms in individual and company level and dividing the ethics as rigid and flexible where rigid values like honesty ,professionalism ,integrity and flexible values like imbibing good values of other countries and remunerative practice etc can be prescribed .
    Constant monitoring of such values in individuals and company is necessary .United nation can provide a very good platform for discussing the issue to make a uniform consensus on ethical guidelines .

  • ESWAR

    International trade and business. In this affair different countries do export and import of their good and services often multilateral agencies viz WTO, WB involve to resolve issues on international trade and business.

    Ethics in international trade and business is complex and arise to number of questions to answer. Mainly it is characterized by the following:-

    a. Every nation has it’s own culture and policies hence it formulates policies accordingly which suits to it’s often often political power for instance OPEC, devaluing of currency by China, Brazil to ma their exports. This often hurts ethics of receiving countries thereby they do impose anti dumping measures.

    b. There is no common code of conduct and ethics being practiced universally.

    c. It is also noted to outline a common ethical approach to make understand, comply on multilateral forum.

    Having seen above mentioned issues and 2007-2008 financial crisis, ethics in international trade and business received attention. The following approach would bring ethics in international trade and business:-

    a. Every individual and corporate should outline ethics and must actively participate to achieve them. There should be constant endeavour to implement to it’s fullest.

    b. Every individual and corporate should broadly categorise ethics into rigid and flexible. Rigid ethics related to honesty, integrity,
    cooperation; should be tried always not to dilute whereas flexible ethics like bonus to employees, welfare and other work culture often needs an of compromise.

    Present hottest issue of global warming, causes of least developed countries are due to lapse of ethics in international trade and business.

    please review my answer.

  • Nidhi

    There are various ethical issues in the international trade and businesses such as corruption, pollution and environmental challenges which is effecting our trade with foreign countries.Ethical behaviour along with skills and professionalism is necessary for the sustainable development rather than short term profit. There are many issues considered in this way are:

    1.Every country has its own culture and languages and it follows their own laws and ethics in businesses
    2. There is no international ethical code of conduct followed or accepted by all the countries
    3. Lack of govt. initiatives to create ethical cooperation framework
    4. Lack of integrity and trust in businesses
    5. There must be decision making process which protects employee and customer rights
    6. Businesses are expected to fully comply the environmental laws, federal and safety regulations

    Bribery is one of the most difficult practice to deal with in terms of international businesses.The enforcement of international business ethics is as difficult as setting a uniform international business ethics and codes.

  • Nilaya Shanker Srivastava

    wealthier country vis-a-vis poor country: the wealthier country always try to take undue advantage of the precarious sitiuation of poor country.We can see the same from the East India Company trade in 16th centuary with India to Present day scramble of Africa. Wealthier country try to amass maximum from poor country without compensating the poor country.

    The wealthier country try to have its say in terms and conditions.

    The corporate try to monetize the indeginious knowledge of the native without substantially compensatinmg them for same.

    Many a time country employ its intelligence agency to put pressure on the corrupt politician of poor country e.g oil for food program of Iran

    Controlling og whole infrastructure of the Poor country by rich nation. COntrolling of substantial oil economy of ARABIA by companies from west

    No or Less of knowledge being transfered.

    Countris are time and again breaching the IPR regime and GI indication. They scruptiously try to get away.

    Reverse engineering and counterfitinh has become a norm with developing countries.

    Rich country give subsidy to their companies thus distort trade. besides, they are involved in Dumping their product. In this way they kill the indegenious industry thus making huge profit thereafter

    Bad people for monetary gain try to involve intrade of banned goods and community. Now a days it is happening in Drugs, Narcotics, heroin etc. In the past Opium war is a case in point.