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No firm enters the market with the intention of loosing money. Unfortunate for them the risks are always high and almost any company will encounter some sort of obstacles sooner or later. When a firm decides to expand internationally and begin exporting or importing from foreign markets, the business experiences some of its most difficult dilemmas, which include inconsistent foreign laws and regulations, cultural and linguistic differences, as well as social and ethical responsibilities of domestic firms to keep an image of integrity overseas, in the face of a “Politically Correct” friendly society. These issues sound easy to tackle and regulate, but unfortunate to those involved there is not always a clear dividing line that separates legal from illegal and ethical from unethical in a foreign environment. One of the most frequently discussed issues when it comes to the global market involves labor laws, which include child labor, un-safe factory conditions, under paid employees, as well as the legal and ethical responsibility of a firm’s international sub-contractors. Just because a law or regulation is legal in a third world nation, does it justify a developed nation (like the United States) to profit off third world citizens, and get away with practices it could not use domestically, or are we helping countries slum economy? The most famous and frequently mentioned company that is accused of defying these legal and ethical responsibilities is the sports giant Nike.
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