The Ethical Issues in Globalisation and International BusinessAbstract/Summary of Report The ethical issues behind the globalization will be demonstrated in this report, especially in the global economy. The theoretical models of the globalization and ethics towards the globalization will be demonstrated as well as the critical analysis if multi-national companies seek to improve the institutional arrangement will be given. Moreover the research will try to find out if global economies have increase people’s well-being and provide wealth and happiness of the community. Finally, recommendation will be proposed for Multinational companies in how to be globally responsible. Introduction/Rationale of Research IdeaBecause of the process of international economic integration, a lot of changes have happened to the world nowadays.
According to studies, some economists believed that economic integration means, greater international trade, greater market integration in commodity prices and means, greater interdependency among countries, as well as more extensive flows of revenues and investment. There are many factors that have been incorporated from the process of globalization such as: 1) the enlarged mobility of capital throughout liberalized financial markets; 2) the expansion of international trade; 3) the expansions of activity that affect environment quality in the developing world; 4) the growth of technology; 5) the enlargement of foreign direct investment in developing economies; and 6) the extension of manufacturing into global labour markets.
Many critics and questions have been highlighted towards the effects of globalization, in recent years. These questions include the following: Does globalization engaging in the exploitation of poor countries by rich countries? Do Multinational Corporations obtain too much power in an increasingly globalize world? Does the rapidity of globalization create economic process that lead to environment damage disproportionately in poor countries?
Do these processes promote condition of labour throughout the world incompatible with reasonable standard of human development as well as well-being? And does the process of globalization deepen inequality between rich and poor countries and between the industrialised and developing countries? Some have criticized globalization based on its development on local condition as well as the local culture for commercial advantages. Moreover, these criticisms begin to converge on a general critique of the goals of modernization and material improvement which underline the whole project of economic development. Personal Ethics/PerspectivesThe researcher has decided this time to focus the discussion from the suffering in other countries such as poverty, violence, starvation, inequality and oppression.
It is morally critical for the researcher to remain sensitive to the human circumstances of people in other parts of the world, to recognise their human reality, to give moral importance to their suffering, and to assume both motive and responsibility to support. Although it is very difficult for the researcher to understand their situation because the researcher has never experienced the situation that they are into, for instance the researcher have never experienced of being exploited, or one of the researcher’s family have died from starvation.
But the researcher believe that by understanding the dynamics of these process as well as by being aware of it can help somehow to minimize the harm to those people when the researcher would extend help to other consumers to be aware of these issues to use their power to influence the decision makers to take action.