Which theory explains why a firm would choose to enter a foreign ...

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Which theory explains why a firm would choose to enter a foreign market via FDI rather than exploit its ownership advantages internationally through other means?
 
  A) eclectic theory
  B) internalization theory
  C) relative factor endowments
  D) national competitive advantage

Question 2

What are ethics? How does culture affect ethics for global organizations?
 
  What will be an ideal response?

[Toya9913]

Answer to Question 1

B

Answer to Question 2

Ethics is an individual's personal beliefs about whether a decision, behavior, or action is right or wrong. What constitutes ethical behavior varies from one person to another. Cultural differences often create ethical complications for global firms. Acceptable behavior in one culture may be viewed as immoral in another. Different cultures promote different norms of behavior. Because generally accepted norms of behavior are considered ethical behaviors, the culture ultimately determines a component of what is or is not ethical in a business setting.