Final answer:
Ethical dilemmas in entering foreign markets involve job losses at home, environmental standards, and national security. Companies should address these issues through corporate social responsibility, maintaining strong environmental standards, and community investment. Ignoring these aspects can result in negative consequences for businesses.
Step-by-step explanation:
When entering foreign markets, companies are faced with ethical dilemmas regarding investment in their home country versus abroad. Some of the concerns include the impact on domestic employment, environmental standards adherence in the host countries, and national security implications due to dependence on imported products. Multinational corporations may shut down operations in their home country, as seen with Nissan and GM, leading to job losses and potentially contributing to economic downturns locally.
However, international trade promotes competition, offers consumer variety, enhances innovation, and generates economic efficiencies through lower production costs. Companies can mitigate ethical concerns by upholding strong environmental standards worldwide, contributing positively to the communities they enter, and maintaining some level of investment at home to support domestic interests. Furthermore, emphasizing corporate social responsibility and maintaining transparent and fair labor practices can help address ethical issues.
Corporate social responsibility is critical in ensuring that while businesses optimize their international trade benefits, they also consider the broader impact of their decisions on society and the environment. Companies should worry about these ethical dilemmas, as ignoring them can lead to reputational damage, consumer backlash, and eventual financial loss.