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Powerful Global brands in the west, such as Nike and Reebok, spend millions of dollars on advertising and promotions (Douglas, 2004). These global brands do not own their own factories but contract factories in third world counties to do the manufacturing keeping the cost down and maximising the profits. These factories are able to make cheap deals and quick deliveries unlike western factories (Douglas, 2004).
If a less developed country does not have local regulations equal to the tough western standards, should the firm investing in a developing nation adhere to the local standard or to the western standard? An important ethical issue is whether an international firm should adhere to the same standards of product safety, work safety and environmental protection that are required in its home country (Hill, 2005)...
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