Globalization has occurred over the years mainly due to the widespread acceptance of modern technology, which has changed the landscape of business entirely in the past decade. Unlike in the past when face to face meetings were the norms, nowadays business can be connected via video conferencing (e.g. Skype) and also mobile phones allow us to make and receive calls without necessary being at a particular place unlike during the landline days. Nevertheless some analyst argue that the scale of financial globalization is way too far, This explains why countries have the option of either leaving the exchange rate mechanisms to the market forces to decide or alternatively Governments could involve themselves in setting exchange rate …show more content…
There are different levels at which host countries and MNC’s negotiate, as illustrated by Ramamurti (2001), Two bargaining models exists, they are; the two tier bargaining model and the tier one bargaining model. The tier two bargaining model is synonymous to the original bargaining model (traditional model) in which the bargaining power belongs to the stronger party involved at that particular scenario (survival of the fittest), the main difference arguably is that the tier two model allows for developing countries to negotiate terms with developed nations through multilateral organizations such as the International Monetary Fund (IMF). A major distinction between the two models is that the tier two bargaining is based on micro-economic factors such as market size of host nation, product differentiation and technology, while tier one model is largely driven by macro-economic and political considerations such as the level of bilateral relations between the respective governments involved which may be determined by the historical and cultural ties between the two …show more content…
Most ethical issues of globalization are as a result of socio-economic, political and legal differences that vary between nations. It is pertinent for a MNC to set stringent rules in this regard as it is increasingly becoming an area of interest for Governments, Media houses and International Organizations such as the United Nations (UN). Most common ethical issues that Underhand’s directors may be questioned about range from human right (child labour), corrupt practices, employment issues and environmental