Final answer:
Ethical international business practice is crucial for multinational corporations like Panting Steel, which must balance employee treatment, environmental concerns, and national security. While environmental regulation avoidance is a concern, it does not uniformly apply to trade with high-income countries with stricter standards.
Step-by-step explanation:
Conducting International Business Ethically
Conducting international business in an ethical manner is becoming increasingly vital for modern multinational corporations, like Panting Steel, which operates globally. A key aspect of business ethics is how a corporation treats its employees and the moral obligations it bears towards them. As these large firms hold substantial market control, understanding their ethical responsibilities is essential to maintain a balance of power.
Environmental Concerns and International Trade
Environmental considerations cannot be overlooked when conducting international business. Concerns arise when multinational corporations may possibly bypass stricter environmental regulations by setting up production in countries with lenient policies. Such actions sacrifice environmental quality for economic benefits, creating a tension between market benefits and ecological sustainability.
Governmental Policies and National Security
Governments often struggle with the need to protect national interests, balancing business and security concerns against the benefits of international trade. With some countries becoming significantly dependent on imported goods like oil, this can lead to protective measures such as restricting imports to safeguard against potential threats to national security in times of crisis.
Trade with High-Income Countries
It's noteworthy that issues of 'racing to the bottom' in environmental standards don't apply equally to all international trade. About half of U.S. trade is with other high-income nations, many of which impose even stricter environmental regulations than the U.S., highlighting different international dynamics in trade and ethical standards.