3.Countries with hostile climates associated with economic stagnation 4.Countries that suffer the most from major calamities are among the poorest in the world, which influences ability to market products Social Responsibility & Environmental Management 1.Firms required to be socially responsible especially in foreign markets 2.Firms should comply regulations against environmental pollution and disposal of hazardous waste 3.Economic development and protection for the environment can coexist 4.Sustainable development guides many governments and multinational companies today Sustainable Development: Key Propositions 1. There is a crucial and potentially positive link between economic development and the environment 2. The costs of inappropriate economic policies on the environment are very high 3. Addressing environmental problems requires that poverty be reduced 4. Economic growth must be guided by prices that incorporate environmental values 5. Since environment problems pay no respect to borders, global and regional collaboration is sometimes needed to complement national and regional regions Cultural Imperatives, Electives and Exclusives • Cultural imperatives are the business customs and expectations that must be met, conformed, recognized and accommodated if relationships are to be successful • Cultural electives relate to areas of behavior or to customs that cultural aliens may wish to conform to or participate in but that are not required • Cultural exclusives are those customs or behavior patterns reserved exclusively for the locals and from which the foreigner is barred and must not participate Gender Bias in International Business 1.The gender bias against women managers exists in some countries 2.Women are not accepted in upper level management roles in Asian, Middle Eastern, and Latin American 3.Gender bias poses significant challenges in cross-cultural negotiations Business Ethics 1. Business ethics is complex in the international marketplace because value judgments differ widely among culturally diverse groups 2. Corruption varyingly defined from culture to culture 3. Existence of different levels of corruption, bribery, and fraud 4. The Foreign Corrupt Practices Act 1997: Imprisonment for bribery 5. Bribery creates a major conflict between ethics and profitability