Question

Entering foreign markets, by definition, means not investing in a firm's home country. For example, since 2000, GN Netcome shut down some operations in its home country of Denmark while adding head counts in China. Nissan closed factories in Japan and added a new factory in the United States. What are the ethical dilemmas here? What are your recommendations?  

Answer 1

Entering foreign market does not implies leaving domestic market while it means invest in foreign markets in addition to domestic market. Entering foreign market means that manufacturers will enter the foreign market and start competing with foreign based produce. Above examples are only possible when producing in Denmark and Japan was very costly than China and United States respectively. Ethical dilemma is to choose either domestic or foreign market while leaving one market for other is not beneficial from a producer viewpoint.