Business Ethics
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- Category: Politics: Moral Issues
- Date Submitted: 10/26/2010 12:22 PM
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Profitability of Ethical Business 1
Running Head: PROFITABILITY OF ETHICAL BUSINESS PRACTICES IN LATIN AMERICA
Profitability of Ethical Business Practices in Latin America
Bryon E. Eichelberger
Wayland Baptist University
Profitability of Ethical Business 2
Abstract
Conducting business outside the United States can be very profitable for many US companies. With a weaker Peso, reduced labor cost and ideal transportation benefits due to rising fuel cost, Latin America is very appealing; however there is risk to be considered. Cultural differences can place companies into situations that they are unfamiliar with. Not all countries uphold the same ethical standard as the United States and the fines for breaking the law can quickly reduce profits. Overall, attention to corruption and related practices of companies and countries is on the rise. Consumers are known to alter their buying activities based on their concept or knowledge of the corruptness of a company.
Profitability of Ethical Business 3
Profitability of Ethical Business Practices in Latin America
U.S. companies have the benefit of such a large domestic market that many have been relatively late to enter international markets (Magliona, 2005, para.1). The fear of doing business abroad also has led American companies to underestimate the opportunities in regions such as Latin America.
Soaring fuel prices make it more expensive to ship goods from Asia and more costly to fly executives to and from meetings overseas. Plus, the weaker dollar and rising inflation in China have pushed up manufacturing costs there, while congestion at the major Southern California ports can mean delays for importers who don't plan ahead.
Many U.S. companies have had great success operating in Latin America. It didn't take Microsoft long before a majority of its revenues came from outside the United States, and Wal-Mart has certainly moved aggressively into foreign...
Running Head: PROFITABILITY OF ETHICAL BUSINESS PRACTICES IN LATIN AMERICA
Profitability of Ethical Business Practices in Latin America
Bryon E. Eichelberger
Wayland Baptist University
Profitability of Ethical Business 2
Abstract
Conducting business outside the United States can be very profitable for many US companies. With a weaker Peso, reduced labor cost and ideal transportation benefits due to rising fuel cost, Latin America is very appealing; however there is risk to be considered. Cultural differences can place companies into situations that they are unfamiliar with. Not all countries uphold the same ethical standard as the United States and the fines for breaking the law can quickly reduce profits. Overall, attention to corruption and related practices of companies and countries is on the rise. Consumers are known to alter their buying activities based on their concept or knowledge of the corruptness of a company.
Profitability of Ethical Business 3
Profitability of Ethical Business Practices in Latin America
U.S. companies have the benefit of such a large domestic market that many have been relatively late to enter international markets (Magliona, 2005, para.1). The fear of doing business abroad also has led American companies to underestimate the opportunities in regions such as Latin America.
Soaring fuel prices make it more expensive to ship goods from Asia and more costly to fly executives to and from meetings overseas. Plus, the weaker dollar and rising inflation in China have pushed up manufacturing costs there, while congestion at the major Southern California ports can mean delays for importers who don't plan ahead.
Many U.S. companies have had great success operating in Latin America. It didn't take Microsoft long before a majority of its revenues came from outside the United States, and Wal-Mart has certainly moved aggressively into foreign...