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Ethical Dilemma Global Business and Emerging Economies - Case Study Example

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The world has become a global platform were countries depend on the contribution and participation of all 210 nations across the globe. The case study discussed in the textbook, Global, revealed the world is divided into developed and emerging economies. There are 54 developed economies which control roughly ?…
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Ethical Dilemma Global Business and Emerging Economies
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"Ethical Dilemma Global Business and Emerging Economies"

Download file to see previous pages The biggest five emerging economies are referred too as the BRICS. The five members of the BRICS are Brazil, Russia, India, China, and South Africa. There is a dark side to the globalization movement. It seems as if ever since this movement began the rich have been getting richer, but the poor are still struggling to survive. The continent that has suffered the most since the start of the movement is Africa particularly the Sub-Saharan region. Most people in Africa are living on income of less than $1 day and they do not have enough money to eat properly everyday. While people in Africa are dying of starvation, the opposite occurs in Western countries such as the United States where there is so much abundance of food that 33.8% of the population suffers from obesity (Cdc, 2011). Developed economies sometimes are at disadvantage in certain aspects such as cost of living. In the United States health costs are skyrocketing, but in many emerging economies healthcare is a universal right and the government pays for all medical costs. In many of these countries there are no applications of patents which helps keep the price of prescription drugs low. Overall the standards of living in developing economies are much higher than in emerging economies. The United Nations should do more in order to transfer the wealth better among the world’s nations. ...
ndustries such as the pharmaceutical industry can impose new ethical regulation to raise the bar and make industry concessions to accelerate the process towards redemption to certain patients. For instance the HIV/AIDS epidemic requires the industry to impose a cero profit policy. All drugs and research and development for this disease will be treated as if the corporations were non-profit organizations. All countries across the world will amend their tax codes to provide credits for R&D for HIV/AIDS as well as tax deductions and credits based on distribution quotas for HIV/AIDS medicines. There are other alternative solutions to help alleviate the imbalance distribution of wealth worldwide. A way for the developed nations to directly help emerging economies achieve growth is by a direct transfer of funds. The 54 developed economies of the world will impose a 5% redistribution tax based on the gross domestic product of each country. The money collected from the tax will be distributed to the emerging countries that fall in the lower 25% percentile of gross domestic product per capital among the emerging economies. The 39 poorest countries in the world will receive the economic incentive from the collection of the tax. Aggressively investing in emerging economies can help improve the standard of living of a lot of people. This strategy seems like a socially responsible tactic, but businesses cannot forget that their goal is to make money. A business person should choose the option that makes more economic sense when implementing international expansion strategies. Investing in a foreign developed economy has a lower risk than investing in an emerging economy. A way to facilitate foreign investment in emerging economies, while at the same minimizing the risk of ...Download file to see next pagesRead More
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