Essay About Foreign Companies And Borders Of Their Own Country

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The Potential Benefits and Social Costs of International Business for Domestic and Foreign PartnersWith domestic and foreign companies trading globally, it has now brought into the spotlight, both the benefits and social costs of International Business.Potential BenefitsAccess to Markets[pic 1]Access to foreign markets means the ability for a company to expand and grow beyond the borders of their own country as a method of survival.Cheaper Labour[pic 2]By going to lower wage countries, companies can increase their profitability by providing customers what they need and want, but at a lower production cost.Increased Quality and Quantity of GoodsTrading with other countries can increase both the quality and quantity of goods available for purchase.  Ex: Bananas: Canada can not grow them, but by trading Canadians can buy them.Access to ResourcesSome countries may lack the resources to run its society.  So in order to meet the resource requirements, countries buy abroad.  Ex: Japan imports oil for car use.Social CostsOutsourcingSince labour is cheaper in other countries, a company may shift its internal company functions to an outside firm to handle these functions at a cheaper cost.  Thus resulting in job losses in the home country.  Human Rights and Labour AbusesSince different countries have different laws, companies may exploit this loop hole and may employ unethical practices to produce its goods and services.  Environmental DegradationEnvironmental laws vary around the world.  What is not acceptable in Canada may be allowed in a foreign country.  Some companies may move their operations into a country with lax environmental laws, as away to save money on pollution control.  However, this may result in greater pollution of the earth.[pic 3]