Ethical Issues With International Business - 1518 Words

The world we live in today revolves around business. International business is sometimes called; â€Å"The Study of Multinational Companies.† Doing business internationally is an interesting task. There are many cultures, behaviors and traditions that different countries have and it is important to be aware of them. Cultures become crossed when different countries negotiate business. Culture influences how people act, think, and communicate. When dealing business internationally, diving in head first isn t an option, businesses need to be aware of differences and accommodate them to be successful. There are many ethical issues with international business. Many companies expand internationally because foreign countries offer a higher profit†¦show more content†¦Many businesses aren t fully aware of these cultures and when encountered with them, they fail to communicate or negotiate effectively. According to Jeswald W. Salacuse, who wrote the book The Global Negotiator: Making, Managing, and Mending Deals Around the World in the Twenty-First Century found that there are ten major elements that complicate international business. A few that stand out are â€Å"Negotiating Goals: Contract or Relationship?† My interpretation is that when dealing business, it is sometimes hard to figure out how to act or speak. One side may think strictly business, while the other side may want to get to know you and then talk business. Salacuse states that as a general rule, it is safer to act formal instead of informal. Some cultures think that part of the negotiation is more about forming a relationship between both sides instead of forming a contract. It can be harmful to a business to expect one thing when they need to be open to more options and expect the unexpected. It is important to try to understand how the other business does business. Business is very tricky. You can go into a meeting expecting to form a relationship with the other business, when th ey could not care less and want a contract formed. A common goal is an ideal way to go about things. In a survey conducted of 400 people from 12 different countries, 74% of Spanish people said the goal of negotiation was a contract and 33% of Indian