Entering foreign markets, by definition, means not investing in a firm's home country. For example, Nissan...

Entering foreign markets, by definition, means not investing in a firm's home country. For example, Nissan closed factories in Japan and added a new factory in the United States. GM shut down factories at home but kept them open in Europe. Do you see any ethical dilemmas here?

Please answer in detail in no less than 2 paragraphs

Expert Solution

An ethical dilemma also sometimes known as ethical paradox or moral dilemma, is a problem in the decision-making process between two possible options, neither of which is absolutely acceptable from an ethical perspective.

Entering foreign markets, by definition, means not investing in a firm's home country. For example, Nissan closed factories in Japan and added a new factory in the United States. GM shut down factories at home but kept them open in Europe. There is an ethical dilemma here because here the companies have two choose between two actions either to invest in home countries and or in foreign country but non of them seems to be absolutely acceptable from an ethical perspective.

Neither of the investment decisions are absolutely acceptable from the ethical perspective because in on one side you are responsible for your company and has to look after its profitability and other opportunities but on the other hand you also have some responsibilities against the country of which you're a citizen. So if you think of your country and invest in your own country you may incur a loss if the situations is not favourable, and incurring a loss knowingly is not ethically acceptable. But if you invest abroad and not in your home country, than also you are running away from your responsibility because being a citizen of your country you must do something for it because it is like your family.

Rahul Sunny answered 2 years ago

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