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You are chief operating officer of a U.S.-based telecommunications firm considering a joint venture inside China with a Chinese firm. The consultant you hired to help you through the negotiations has just informed you that ethical concerns can arise when international companies consider a cooperative form of market entry (such as a joint venture) with a local partner in any market. This is especially true when each partner contributes personnel to the venture because cultural perspectives cause people to see ethical dilemmas differently. This is of special concern to you because the venture had planned to employ people from both China and the United States. In light of this recent information, you are reassessing your entry mode options.
1. Do you think your two companies can establish a set of ethical principles before commencing operations that will guide a potential joint venture?
2. What ethical issues might arise in conjunction with other entry modes discussed in this chapter?
3. Is there a company that succeeded under circumstances that are similar to those that your firm faces?
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