As the Number of MNCs Multinational Corporations)increases,we Are Experiencing International

question 229

Multiple Choice

As the number of MNCs multinational corporations) increases,we are experiencing international ethical dilemmas.One very real concern during the past decade is the human rights abuse in sweatshops where several MNCs contract manufacture their products,in exchange for cheap labor.Several retailers have banned together to set ethical standards in foreign factories.Which of the following statements summarizes the challenges of companies doing business in developing countries and the concerns of their customers?

• A)MNCs must subjectively determine the local "living wage," which is usually more than the local legal wage in developing countries.Customers surveyed say they are willing to pay a few dollars more to improve working conditions in sweatshops.
• B)Economically sensitive customers want companies to pass along cost savings to them,at all costs - even if the products are made through offshore outsourcing.Companies want to please customers,first!.
• C)Most multinational corporations have made no attempt to improve working standards at sweatshop type factories.They will turn a blind eye to the problem unless U.S.law is passed to force the issue.Customers understand that legal limits come before ethical standards.
• D)MNCs cannot be expected to demand socially responsible behavior from their suppliers - including foreign sweatshops.When doing business abroad,the U.S.company does not need to comply with U.S.law when its suppliers)is not in the U.S.or on U.S.territory.

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