3.5 Chapter 3: Lecture Quiz- Case Study: Should Coke go into Bangladesh?
- Due No due date
- Points 17
- Questions 4
- Time Limit None
- Allowed Attempts Unlimited
Instructions
Have a Coke and a smile....?
Chapter three discusses trade issues in the global arena.
What role does ethics play?
In order to circumnavigate Bangladesh's recent buy-national regulations and...in addition to an unfavorable balance of trade, Coke is reassessing the value of direct foreign investment via offshoring. You are a mid-level manager for Coca-Cola submitting a quick assessment/opinion about whether you support the idea of moving forward with direct foreign investment in the nation of Bangladesh.
The proposed plan is to open a bottling plant in partnership with Coca Cola Bottling Bangladesh (CCBB). Coke believes the presence of US products in this region furthers the United States’ comparative advantage in the worldwide beverage market. In addition to offering the premier beverage that has given the United States a comparative advantage throughout the world, Coke would provide critical new jobs to over 300 locals while instituting social initiatives that will benefit the entire region.
Issues to Consider:
1. The size, scale, and scope of MNC (multinational companies) presence in LDC (lesser developed nations) has increased concerns surrounding misuse and depletion of natural resources (such as fresh water) and available infrastructure.
2. There has been significant disagreement about the nutritional efficacy of selling westernized beverages (high in sugar content) in countries with extremely low discretionary incomes and severely limited access to healthcare.
3. Coke plans to institute social programs such as student uniforms and free health clinics for plant employees in an effort to alleviate poverty.
4. The massive growth of free trade has sparked concern about the reach of unchecked globalism into LDCs (lesser developed countries).
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