International Marketing Busiess Essay

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International marketing Due to the globalization of markets and production processes, an ever increasing number of marketers and business people have to deal with ethical issues in cross-cultural settings. In this article, main approaches in marketing ethics have been reviewed for ethical

analysis and decision making in international settings. The purpose of this article is to

present some guidelines that can serve as a guide for global marketers in the important

areas for marketing ethics. It is supposed to assist marketers in their efforts to behave in an

ethical fashion. It is assumed that, local conditions of international markets may be

different; but the some global marketing ethics principles should be applicable to all

markets. It is proposed that a uniform code of ethics should be created by WTO and UN

organizations to solve diverse cultural differences to arrive at cooperative strategies in international marketing.

Globalization and International Marketing Ethics Problems are closely related to each other. Increased

globalization resulted in many problems including ethical ones. From 1950 to 2000, world trade

expanded almost 20-fold, far outstripping world output, which grew by six and a half times (WTO,

2001). In this expansion, exports and foreign direct investment has played an increasing role in the

global economy.

Even small businesses are increasing their cross border investments. In general, the average

yearly outflow of FDI increased from about $25 billion in 1975 to a record $1.3 trillion in 2000 (UN,

2001). These mean that millions of business people working abroad in different geographical, political,

legal, social and cultural environments. It is easy to guess that different environments have created

many problems, including ethical problems, for international marketing personnel at home and abroad.

Especially during the past 55 years, technological improvements in transportation,

communication and information processing and internet made great contribution to the development of

globalization. If this trend continues, the prophesies of Levitt, about globalization, in 1960`s, will

become reality in 2020`s. To manage this trend fairly, it is advisable to create universal ethical norms,

rules and regulations.

Globalization of Markets and Competition: Trade is increasingly global in scope today. There are several reasons for this. One significant reason is technological-because of improved transportation and communication opportunities today, trade is now more practical. Thus, consumers and businesses now have access to the very best products from many different countries. Increasingly rapid technology lifecycles also increases the competition among countries as to who can produce the newest in technology. In part to accommodate these realities, countries in the last several decades have taken increasing steps to promote global trade through agreements such as the General Treaty on Trade and Tariffs, and trade organizations such as the World Trade Organization (WTO), North American Free Trade Agreement (NAFTA), and the European Union (EU).

What is globalization?

Globalization is a process that has been going on for the past 5000 years (Tehranian, 2005), but it has

significantly accelerated since the demolishing of the Soviet Union in 1991According to Friedman (1999), globalization is: "The inexorable integration of markets, nation

states, and technologies to a degree never witnessed before- in a way that is enabling individuals,

corporations and nation-states to reach around the world farther, faster, deeper and cheaper than before,

the spread of free-market capitalism to virtually every country in the world. On the other hand, a great

number of economists assert that globalization, as an on-going historical process that reached its apex

toward the end of the 20th century. This process leads to the increasing integration of the production of

goods, services, ideas, culture, communication and environmental pollution on a world-wide scale,

imparting locality of populations and labor.

B. Dimensions of Globalization

Globalization is an umbrella term and has some dimensions. It can be related to every fields of daily

life. For instance, a marketing staff versus an engineer could interpret globalization in different ways.

Dimensions are as follows:

• Economics - related to globalization in trade, money, corporations,banking, capital,

• Political - science, governance, wars, peace, IGOS, NGOS, and regimes,

• Sociology-communities, conflict, classes, nations, agreements,

• Psychology-individuals as subjects and objects of global action,

• Anthropology- cultures overlapping, adapting, clashing, merging,

• Communications- information as knowledge and tools-internet,

• Geography- Everything, provided it can be anchored in space.

Each of these social sciences looks at a special aspect of the whole system of interdependent

parts that constitutes our world system. Each discipline constructs a concept of globalization that

reflects its special point of view: Consider how it relates its focal concerns to the contemporary world

system

C. The Emergence of Global Institutions

In international business, globalization has several facets, including the globalization of markets and

globalization of production (Hill, 2004: 7-8). The globalization of markets refers to the merging of

historically distinct and separate national markets into one huge global markets. On the other hand, the

globalization of production refers to the sourcing of goods and services from locations around the

globe to take advantage of national differences in cost and quality factors of production (such as labor,

energy, raw materials, land, and capital).

As markets globalize and an increasing proportion of business activity transcends national

borders, institutions need to help manage, regulate, and police the global marketplace, and to promote

the establishment of multinational treaties to govern the global business system. During the past 55

years, a number of important global institutions have been created to help perform these functions.

These institutions include the "General Agreement on Tariffs and Trade"(GATT) and its

successor, the "World Trade Organization" (WTO); the "International Monetary Fund" (IMF) and its

twin sister, the "World Bank "; and the "United Nations" (UN). All these institutions were created by

voluntary agreement between individual nation-states, and their functions are enshrined in international

treaties (Hill, ibid: 9). These organizations have many important roles in creating international business

ethical rules and regulations. Especially, The World Trade Organization is primarily responsible for

policing the world trading system and making sure nation states adhere to the rules laid down in trade

treaties signed by WTO member states. Now it has over 145 nations, and the last member is the

Republic of China. The WTO is also responsible for facilitating the establishment of additional

multinational agreements between WTO member states.

D. Drivers of Globalization

From the economical point of view, two macro factors seem to underlie the trend toward globalization

(Frankel, 2000). The first is the decline in barriers to flow of goods, services and capital that has

occurred since the end of World War II. The second factor is technological change, particularly the

dramatic developments in recent years in communication, information processing, and transportation

technologies.

Everybody knows the importance of the role technological innovations and developments in

globalization, on the other hand, "declining trade and investment barriers" with the help of GATT and

WTO is as important as the first one.

During the 1920s and 30s, many nations erected formidable barriers to international trade and

foreign direct investment. International trade occurs when a firm exports goods or services to

consumers in another country. Foreign direct investment occurs when a firm invests resources in

business activities outside its home country. Many of the barriers to international trade took the form of

high tariffs on imports of manufactured goods. The typical aim of such tariffs was to protect domestic

industries from foreign competition. Ultimately, this practice depressed world demand and contributed

to the Great Depression of the 1930s (Hill, ibid: 11).

Having learned from this experience, the advanced industrial nations of the West committed

themselves after World War II to removing barriers to the free flow of goods, services, and capital

between nations (Bhagwati, 1989). This goal was protected and realized in the General Agreement on

Tariffs and Trade. Under the umbrella of GATT, nine rounds of negotiations among member states

have worked to lower barriers to the flow of goods and services. The impacts of GATT agreements on

average tariff rates for manufactured goods were formidable. If we give a figure, average tariff rates

have been fallen significantly since 1950, from average 30-40 percent to 3.9 percent in 2000 (The

United Nations, 2001). In order to nullify this tariff rate, Regional economic integrations have been

created. Such as, European (EU), North American Free Trade Area (NAFTA), Free Trade Area of the

America (FTAA), Association of Southeast Asian Nations (ASEAN), and Asia-Pacific Economic

Cooperation (APEC) are important attempts to achieve economic gains from the free flow of trade &

investment between neighboring countries.

The most successful regional economic cooperation is the EU. The Single European Act sought

to create a true single market by abolishing administrative barriers to the free flow of trade and

investment between EU countries. In the near future, it is expected that the EU will become a political

union like the USA.

F. Is Globalization Good for Everybody ?

International Monetary Fund (IMF) asserts that as globalization has progressed, living conditions have

improved significantly in virtually all countries. However, the strongest gains have been made by the

advanced countries and only some of developing countries.

97 International Research Journal of Finance and Economics - Issue 26 (2009)

That the income gap between high-income and low-income countries has grown wider is a

matter for concern. And the number of the world`s citizens in abject poverty is deeply disturbing. But it

is wrong to jump to the conclusion that globalization has caused the divergence, or that nothing can be

done to improve the situation. In contrast: low-income countries have not been able to integrate with

the global economy as quickly as others, partly because of their chosen policies and partly because of

factors outside their control.

No country, least of all the poorest, can afford to remain isolated from the world economy.

Every country should seek to reduce poverty. The International community should endeavor-by

strengthening the international financial system, through trade, and through aid-to help the poorest

countries integrate into the world economy, grow more rapidly, and reduce poverty. That is the way to

ensure all people in all countries have access to the benefits of globalization.

In order to manage globalization process fairly, international reform efforts and democratic

transnational institutions should be created and empowered. To reach such an objective UN-supported

commission of 28 leaders produced influential 1995 report " Our Global Neighborhood" and 1999

report " The Millennium Year and the Reform Process" proposes to strengthen global governance

without creating world government, while respecting the "rights of people and the role of civil society.

Ethical Issues in International Marketing

A. History of Ethics

Ethics is a branch of philosophy that studies morals and values. Interest in ethics and ethical codes has

been around for a long time. Centuries ago, Aristotle referred to character, which he called "ethos", as

the most potent means of persuasion (Lane Cooper, 1960). He also identified elements of virtue as

"justice, courage, temperance, magnificence, magnanimity, liberality, gentleness, prudence, and

wisdom". In Roman times, the emperor Justinian was the first to incorporate ethics into the legal

system and to establish schools to educate lawyers concerning ethics morality, and law. Napoleon

established a code of thirty-six statutes based on the concept that all citizens, regardless of

circumstances of birth or social stature, should be treated fairly and equally. Indeed, every civilization

has recognized the need for establishing laws and codes to guide human relationship and behavior

(Metcalfe, 2003: 74).

Ethics studies the differences between right and wrong, and through these studies philosophers

have developed several theories. Some major ethical theories are egoism, intuitionism, emotivism,

rationalism, and utilitarianism. Egoism is the belief that people should only look at how the

consequences of an action affect them. Intuitionism is the belief in an immediate awareness of moral

value. Emotivism is the belief that ethical decisions are expressions of emotion. Rationalism focuses on

the metaphysical aspects of ethics. Utilitarianism in ethics considers how moral actions produce the

greatest overall good for everyone.

B. Ethical Universals and National Cultures

1. What Is Culture ?

Academics and researchers have never been to agree on a simple definition of culture. In the 1870s, the

anthropologist Edward Taylor defined culture as "that complex whole which includes knowledge,

belief, art, morals, law, custom, and other capabilities acquired by man as a member of society (Taylor,

1871). As other capabilities, we can include economic and political philosophy, religion, language and

education systems.

Especially, religion is very important in shaping ethical systems refer to a set of moral

principles, values, that are used to guide and shape behavior. Most of the world`s ethical systems are

the product of religions (Hill,ibid:105).

Dutch Management Professor Geert Hofstede refers to culture as the "software of the mind"

and argues that it provides a guide for humans on how to think and behave; it is a problem-solving tool

(Hofstede, 1984: 21). Business consultant E. Hall gives a better definition for international marketers :

"The people we were advising kept bumping their heads against an invisible barrier...We knew that

what they were up against was a completely different way of organizing life, of thinking and of

conceiving the underlying assumptions about the family and the state, the economic system, and the

man himself" (Hofstede, ibid: 21).

Most traditional definitions of culture center around the notion that culture is the sum of the

values, rituals, symbols, beliefs and thought processes that are learned, shared by a group of people,

and transmitted from generation to generation (Herskovitz,1952: 634). Values mean abstract ideas

about what a group believes to be good, right, and desirable. If we put it differently, values are shared

assumptions about how things ought to be (Mead, 1994: 7). On the other hand, values are rules and

guidelines that prescribe appropriate behavior in particular situations.

2. Ethical Perceptions and Culture

A research conducted by Armstrong reveals that there is a relationship between the cultural

environment (Australia, Singapore and Malaysia) and the perceived ethical problems. In another study,

Armstrong finds out the most frequently cited problem of Australian International Business Managers

is gifts/favours/entertainment and that this problem may be related to the culture where the

international business is being conducted. And the most important ethical problem to Australian

international managers is large-scale bribery (Armstrong, 1992).

Although, different cultural environments result in different ethical perceptions in international

marketing, for the sake of ethical consistency, it is necessary to generate internationally applicable

ethical rules and regulations. As a matter of fact, a finding of an empirical research conducted by

Armstrong proposes that "The Australian general managers disagreed that it is necessary to

compromise one`s ethics to succeed in international marketing"

C. Ethical Approaches in International Marketing

Due to the globalization of markets and production, ever increasing number of international marketing

personnel have to deal with ethical issues in cross-cultural settings. Murphy and Laczniak (1981: 58)

asserted two decades ago that "as more firms move into multinational marketing, ethical issues tend to

increase".Actually, international marketers are often criticized for ethical misconduct (Armstrong et al.,

1990: 6-15). In a cross-cultural environment, marketers are exposed to different values and ethical

norms (Nill, 2003: 90-104). Which ethical position should marketers take when acting in a foreign

culture? In other words, whose ethics do we use in international marketing? is very important to be

answered. DeGeorge answers this question as "our ethics"; our ethical values are not like a coat that we

put on in certain seasons and places throw off elsewhere. We cannot leave our ethics behind as we

venture around globe. If we think we can, or if we have no ethics, then, of course, the question is

beside the point

In International Marketing, ethical decision- making process can be influenced by many ethical

approaches. These approaches can be classified "descriptive-prescriptive and communicative

approach" (Nill, 2003: 90), and "normative (prescriptive), and descriptive(positive)" theory of

marketing ethics approach.

1. Descriptive Approach

Descriptive ethics describe the values and moral reasoning of individuals and groups and attempt to

provide an understanding of the ethical decision-making process (Schopenhauer, 1979). It is assumed

that the ethical decision-making process affected by a variety of individual, situational, and contextual

factors such as personal experiences, opportunity, the organizational environment and the cultural

environment.

2. Normative Approach

Normative ethics suggest an answer to the general moral question of what ought to do (Schlegelmilch,

1998; Murphy and Laczniak, 1981, Chonko, 1995). These researchers are concerned with the

justification of moral norms and ethical values. It has been debated for many years whether moral

responsibility can be attributed to business organizations. Some years ago, ethics have nothing to do

with international business; then, normative ethics cannot be a concern for business corporations. Some

scholars discuss that business organizations cannot assume moral responsibility. Only individuals

acting on behalf of the corporation are morally motivated, have intensions, and can be held accountable.

On the other hand, some scholars argue that some aspects of the organization are not

reconcilable with moral responsibility. Organizations serve a purpose and in that sense are not entirely

autonomous. Organizations can never ends in themselves; they have been created for a specific

purpose. The organization cannot be held responsible for actions that go beyond or against that purpose.

Normative approaches can be classified as "deontological theories" and "teleological theories".

One of the purposes of these theories is to develop guidelines or rules to assist international marketers

in their efforts to behave in an ethical fashion. Fundamental difference

between these theories is that deontological theories focus on the specific actions or behaviors of an

individual, whereas teleological theories focus on the consequences of the actions or behaviors.

a. Deontological Evaluations

Deontologists believe that "certain features of the act itself other than the value it brings into existence"

make an action or rule right (Frankena, 1963). Deontological views have a rich intellectual history

dating back at least as far as Socrates. For them the problem has been to determine the "best" set of

rules to live by. Examples proposed have been the "golden rule" of "doing unto others as you would

have them do unto you" (Sidgwick, 1907). According to Laczniak; international marketers have certain

duties, under most circumstances, constitute moral obligations that include the duties of fidelity,

gratitude, justice, beneficence, self-improvement and noninjury.

b. Teleological Evaluation

Teleologists suggest that people ought to determine the results of various behaviors in a situation and

evaluate the goodness or badness of all the consequences. A behavior is then ethical if it produces a

greater balance of good over evil than any available alternative (Nill, Ibid). Teleology can be divided

into two subcategories as egoism and utilitarianism.

(1). Egoism

Egoism defines rightness in terms of the consequences for the individual.

It postulates that one should choose actions that result in the maximum of good for oneself.

(2). Utilitarianism

In contrast to the egoist,the utilitarian does not minimize "bad " or maximize his/her own "good" in

general. Ethical universalism (utilitarianism) holds that an act is right only if it creates the greatest

good for the greatest number. Hobbes and Nietzsche were ethical egoists but such philosophers as G.E.

Moore and John Stuart Mill were ethical universalists. If we explain these theories with an example;

deontologists do not tell a lie and they do not consider the results of the action, on the other hand,

teleologists could tell a lie if they save a life, or when telling the truth hurts another person

.

3. Dialogic Approach

As a third approach proposed by Nill and Shultz (1997: 4) is communicative approach as an alternative

ethical framework for macro marketers. Dialogic idealism combines moral universalism with moral

relativism by suggesting universally valid rules that prescribe how an ideal dialogue is to be conducted

without imposing moral core values or hyper norms. Thus, the actual outcome of the dialogue will

depend on its participants. Only the way in which the dialogue should be conducted can be seen as a

universal obligation for everyone who is truly motivated in participating in the dialogue.

Depending on the nature of the ethical problem and specific situational requirements a dialogic

approach could be a helpful tool for marketers. Nill (2003: 92-97) argues that " more work is needed to

find out how a communicative approach can be implemented as a real-world corporate ethical

responsibility approach".

D. Ethical Problems in International Marketing

The moral question of what is right or appropriate poses many dilemmas for domestic marketers. Even

within a country, ethical standards are frequently not defined or always clear (Cateora and Graham:

142). The problem of business ethics is infinitely more complex in international marketplace, because

value judgments differ widely among culturally diverse groups. That which is commonly accepted as

right on one country may be completely unacceptable in another. Giving business gifts of high value,

for example, is generally condemned in the United States, but in many countries of the world gifts are

not only accepted but also expected (www.business-ethics.org).

Upon examination of existing ethical frameworks in the field of international marketing from a

macro marketing perspective, it is argued that marketers cannot always rely on universally accepted

ethical norms, such as hyper norms or core values that have been suggested by a deluge of marketing

literature (Dunfee,1995; Dunfee, Smith, and Ross, 1999: 14; DeGeorge, 2000). Some basic moral

values could be used in evaluating international marketing ethical issues. Violations of basic moral

values in international marketing settings should be accepted as ethical problems.

After studying the literature related to international marketing, it is easily seen that most of the

marketing ethics studies involve the use of scenarios as research instruments and relate to the following

marketing sub-disciplines (Armstrong, 1992: 167): market research, retail management, purchasing

management, advertising management, marketing management, industrial marketing, and marketing

education. Few studies relate to International Marketing Ethics have been most prominent (Armstrong

and Everett, 1991:61-71; Armstrong, Stening, Ryands, Marks, and Mayo, 1990: 6-15; Armstrong,

1992). Major International Marketing Ethical Problems derived from applied researches by Armstrong

(Ibid) are presented with their short definitions as follows:

• Traditional Small Scale Bribery- involves the payment of small sums of money, typically

to a foreign official in exchange for him/her violating some official duty or responsibility or

to speed routine government actions (grease payments, kickbacks).

• Large Scale Bribery- a relatively large payment intended to allow a violation of the law or

designed to influence policy directly or indirectly (eg, political contribution).

• Gifts/Favours/Entertainment- includes a range of items such as: lavish physical gifts, call

girls, opportunities for personal travel at the company`s expense, gifts received after the

completion of transaction and other extravagant expensive entertainment

.

• Pricing - includes unfair differential pricing, questionable invoicing - where the buyer

requests a written invoice showing a price other than the actual price paid, pricing to force

out local competition, dumping products at prices well below that in the home country,

pricing practices that are illegal in the home country but legal in host country (eg, price

fixing agreements).

• Products/Technology - includes products and technology that are banned for use in the

home country but permitted in the host country and/or appear unsuitable or inappropriate

for use by the people of the host country.

• Tax Evasion Practices - used specifically to evade tax such as transfer pricing (i.e., where

prices paid between affiliates and/or parent company adjusted to affect profit allocation)

including the use of tax havens, where any profit made is in low tax jurisdiction, adjusted

interest payments on intra-firm loans, questionable management and service fees charged

between affiliates and /or the parent company.

• Illegal/Immoral Activities in the Host Country - practices such as: polluting the

environment, maintaining unsafe working conditions; product/technology copying where

protection of patents, trademarks or copyrights has not been enforced and shortweighting

overseas shipments so as to charge a country a phantom weight.

• Questionable Commissions to Channel Members - unreasonably large commissions of

fees paid to channel members, such as sales agents, middlemen, consultants, dealers and

importers.

• Cultural Differences - between cultures involving potential misunderstandings related to

the traditional requirements of the exchange process (e.g., transactions) may be regarded by

one culture as bribes but be acceptable business practices in another culture. These practices

include: gifts, monetary payments, favours, entertainment and political contributions.

• Involvement in Political Affairs- related to the combination of marketing activities and

politics including the following: the exertion of political influence by multinationals,

engaging in marketing activities when either home or host countries are at war and illegal

technology transfers

IV. Concluding Remarks

It is accepted that globalization is an unavoidable process and will progress forever. All business that

firms desire to compete successfully in international environment, should obey to legal and ethical

rules and regulations. To behave in an ethically and socially responsible way should be a hallmark of

every marketer`s behavior, domestic or international. It requires little thought for most of us to know

the socially responsible or ethically correct response to questions about breaking the law, destroying

the environment, denying someone his or her rights, taking unfair advantage, or behaving in a manner

that would bring bodily harm or damage (Cateora and Graham, Ibid).

Actually, the difficult international marketing issues are not the obvious and simple right-orwrong

ones. In many countries the international marketer faces the dilemma of responding to many

situations where there is no local law, where local practices forgive a certain behavior, or the company

willing to " do what is necessary" is favored over the company that refuses to engage in practices that

are not ethical.

In many countries, laws may help define the borders of minimal ethical or social responsibility,

but the law is only the basis above which one`s social and personal morality is tested. In the U.S.A., in

general, legal sanctions prevent marketers from doing unethical transactions. The problems related to

international marketing ethics are not important problems in U.S. domestic market; but in international

settings, especially differences in culture creates some ethical dilemmas.

Perhaps the best guide to good international marketing ethics are the examples set by ethical

business leaders (J. Byrne, 2003). DeGeorge (Ibid) proposes to solve international business ethics

problems in five guidelines:

1. Do not direct intentional harm.

2. Produce more good than harm for the host country.

3. Respect the rights of employees and of all others affected by one`s actions or policies.

4. To the extent consistent with ethical norms, respect the local culture and work with and not

against it.

5. Multinationals should pay their fair share of taxes and cooperate with the local governments

in developing equitable laws and other background institutions.

On the other hand, Cateora and Graham (Ibid) propose to be used some guidelines in

international business: such as,Utilitarian ethics-Does the action optimize the "common good" or

benefits of all constituencies? And who are the constituencies?. Rights of the parties- Does the action

respect the rights of the individuals involved? Justice or fairness- Does the action respect the

canons of justice or fairness to all parties involved?

Answers to these questions can help the international marketer ascertain the degree to which

decisions are beneficial or harmful, right or wrong, or whether the consequences of actions are

ethically or socially responsible. Perhaps the best framework to work within is defined by asking: Is it

legal? Is it right? Can it withstand disclosure to stockholders, to company officials, and to the public?

(Dunfee, et al., 1999: 14).

Though the U.S.A. has clearly led the campaign against international bribery, European firms

and institutions are apparently putting more effort and money into the promotion of what they call

"corporate social responsibility (Maignan and Ralston,2002: 497-514). For example, the watch dog

group Corporate Social Responsibility (CSR) Europe, in cooperation with the INSEAD business

school outside Paris, is studying the relationship between investment attractiveness and positive

corporate behaviors on several dimensions. Their studies find a strong link between firms` social

responsibility and European institutional investors` choices for equity investments (Stock, 2003:1, and

All this is not to say that European firms do not still have their corporate misbehaviors (C.

Matlack, 2003: 48-50). However, it is expected that more efforts in the future to focus on measuring

and monitoring corporate social responsibility around the world.

In a global economy, to solve international marketing ethics problems, self regulation by

companies and industries is important, but that additional background institutions with having

authority to direct globalization is very important. Under these circumstances international sanctions

can be applied for ethical violations.

DeGeorge(2000:50) asserts that " for purposes of international business, there are certain basic

claims and norms that are necessary for business, and these throw some light on claims to universality

in ethics". For example, the Universal Declaration of Human Rights is an important norm which has

been ratified by almost every country and lays down basic principles that should always be adhered to

irrespective of the culture in which one is doing business. For instance, Article 23 of this declaration

states that :

• Everyone has the right to work, to free choice of employment, to just and favorable

conditions of work, and to protection against employment.

• Every one without any discrimination, has the right to equal pay for equal work.

• Everyone who works has the right to just and favorable remuneration ensuring for himself

and his family and existence worthy of human dignity and supplemented, if necessary, by

other means of social protection.

• Everyone has the right to form and to join trade unions for the protection of his interests

(www.un.org/Overview/rights.html.).

There are many articles like article 23, they can be accepted as building blocks of universal

ethical norms and rules. In addition to such international organizations as UN, IMF, World Bank,

World Trade Organization, the International Chamber of Commerce; "International Court of Justice for

Business and Commerce" should be established to solve international marketing ethics problems

legally. Then ethical will become legal. If we want to do business honest and fair in international

marketing area, we can find many universal ethical rules and regulations to obey. Cultural differences

should not result in violations of universal ethics. If UN is reorganized as a more powerful institution,

it can enforce global business agents to conform to the universal ethics norms.

Today, it is generally believed that, the U.S. of America as a superpower has been taking

advantage of official political power of UN and related institutions, such as IMF, WTO, and World

Bank in order to realize his political and economic benefits to sustain global domination. These

institutions could not function effectively and freely to their predefined objectives. A reorganization

and reform is necessary to empower UN and other international institutions to meet the common needs

of all humanity, instead of only U.S. and other developed countries. Otherwise, instead of peace and

stabilization, chaos and terror could dominate the whole world. Adapted to the contemporary world

conditions, well-organized, reformed, empowered and equitable working UN and related institutions

could really contribute to the global peace, security and, social and economic wealth of nations. All

nations could obey the rules and regulations of independent global institutions in regulating and

reorganizing world trade and global economy.

Under these conditions, to solve international marketing ethics problems: international

institutions should manage, regulate, and police the global marketplace, and to promote the

establishment of multinational treaties to govern the global business system.

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