20 Sep MNEs from developed countries often internationalise in developing countries.
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3.An interesting aspect of the process of MNEs internationalisation is the issue of corruption. High profile examples include Rolls Royce which was found to have paid bribes worth millions of pounds to middle men to win contracts in countries such as Indonesia, China and Brazil. Another notable example is the German company Siemens which had to pay billions of pounds in fines to American and German authorities in 2008. BAE agreed to pay millions of pounds as a result of its bribery to secure defence contracts in Tanzania.
MNEs from developed countries often internationalise in developing countries. Unfortunately, corruption in the form of sweeteners is often the norm in many such locations. This poses a fundamental conundrum to MNEs trying to expand to different countries. Do they adhere to ethical principles in origin countries and simply refuse to trade there (as it is unethical/illegal) and thus lose the potential profits or be more malleable to the context in the host countries to expedite the business process?
I look forward to your thoughts on this.
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