International Business Ethics

1. Your former high school buddy invites you to join an entrepreneurial start-up that specializes in cracking the codes of protection software, which protect CDs, VCDs, and DVDs from being copied. He has developed the pioneering technology and lined up financing. The worldwide demand for this technology appears to be enormous. He offers you the job of CEO and 10% of the equity of the firm. How would you respond to his propositions?


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2. During the 1990s, many North American, European, and Asian MNEs set up operations in Mexico, tapping into its location-specific advantages such as (1) proximity to the world’s largest economy (the United States), (2) market-opening policies associated with NAFTA membership, and (3) abundant, low-cost, and high-quality labor. None of these has changed much. Yet, by the 15th anniversary of NAFTA (2014), a significant number of MNEs were starting to curtail operations in Mexico and move to China. Use institution-based and resource-based views to explain why this was the case.


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