1.) There are ethical issues that may arise when doing business in other countries. Among those are cultural issues which may be different in other countries. The Business runs the risk of offending the locals with culture clashes and in turn the support of the locals will not be there for supporting the business. Ethical issues may arise of inequality. Wages and working environment issues are faced when it comes to pay levels and working conditions. The employees of Frostburg may feel that the company is paying them below normal wages levels as oppose to the pay given to workers in the US just because their labor cost are lower. Another ethical issue that may arise in moving to Frostburg is language …show more content…
Although progress has been made in bringing in new companies for cheaper labor rates, the economic development would play a big role in achieving competitive advantage. Another challenge for relocating Mega Foods would be Frostburg 's environmental laws are less formal than our country. Since inspections on food products in the chocolate ingredients are not done regularly, this could pose as a health issue to consumers. In the long run, Mega Foods may bear the consequences financially.
The third challenging issue for Mega Foods is the fact that labor laws are not as developed as they are here. This can cause health and safety issues for your workers. Although Mega Foods want to increase profits and lower the cost recognizing the use of technology will be very much needed in its progression to grow as a global company.
5) Our recommendation would be to keep Mega Foods in Orchard due to the severity of issues that will be posed if the company moved to Frostburg. Some issues are the environmental impact, the safeguards that are in place for labor laws, and the health regulations. We feel its best to keep the facility in Orchard so the employees can keep their jobs and the locals can continue to support the operations of other business such as the