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Analyze the legal, cultural, and ethical challenges encountered by the global business case you selected. Multinational Corporations Case Study

Analyze the legal, cultural, and ethical challenges encountered by the global business case you selected.
Multinational Corporations Case Study

Purpose of Assignment

At times, multinational corporations encounter in-country issues that if not properly addressed, could place the viability of the company at risk. Thus, it is important to promptly recognize and understand these threats so management can employ an effective solution to the problem. An in-depth analysis of this assignment will provide students with a good understanding of the potential issues involved.

Assignment Steps

Select one of the following cases from the textbook:

· Starbucks Wins Key Trademark Case in China (Ch. 2, p. 56)

· Ethical Issues at Apple (Ch. 5, p. 132)<~~ THIS ONE!

· Corruption At Daimler (Ch. 5, p. 136)

Prepare a minimum 700-word analysis addressing the following: MUST INCLUDE INTRO & CONCLUSION! AS WELL AS 2 SOURCES. ANSWER BULLETS THOROUGHLY! NO PLAGIARISM!!!!!!!!!!

· Analyze the legal, cultural, and ethical challenges encountered by the global business case you selected.

· Determine the various roles host governments played in this particular global business operation.

· Summarize the operational challenges global managers faced as illustrated in your selected case.

Format your assignment consistent with APA guidelines. The following case is below.

Ethical Issues at Apple

In mid-2006, news reports surfaced suggesting there were systematic labor abuses at a factory in China that makes the iPhone and iPod for Apple, Inc. According to the reports, workers at Hongfujin Precision Industry were paid as little as $50 a month to work 15-hour shifts making Apple products. There were also reports of forced overtime and poor living conditions for the workers, many of them young women who had migrated from the countryside to work at the plant and lived in company-owned dormitories.

The 2006 articles were the work of two Chinese journalists, Wang You and Weng Bao, employed by China Business News, a state-run newspaper. The target of the reports, Hongfujin Precision Industry, was reportedly China’s largest export manufacturer with overseas sales totaling $14.5 billion. Hongfujin is owned by Foxconn, a large Taiwanese conglomerate, whose customers (in addition to Apple) include Intel, Dell, and Sony Corporation. The Hongfujin factory is a small city in its own right, with clinics, recreational facilities, buses, and 13 restaurants that serve the 200,000 employees.

Upon hearing the news, Apple management responded quickly, pledging to audit the operations to make sure Hongfujin was complying with Apple’s code on labor standards for subcontractors. Managers at Hongfujin took a somewhat different tack; they filed a defamation suit against the two journalists, suing them for $3.8 million in a local court, which promptly froze the journalists’ personal assets pending a trial. Clearly, the management of Hongfujin was trying to send a message to the journalist community—criticism would be costly. The suit sent a chill through the Chinese journalist community because Chinese courts have shown a tendency to favor powerful, locally based companies in legal proceedings.


 

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