#514 Should a firm's operations abroad be judged

Should a firm's operations abroad be judged - Operation Management

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Free Chegg Question

Should a firm's operations abroad be judged by the standards (legal, economic, cultural, and moral) of the country in which it is operating or by the standards of its domestic market? Is a firm responsible for its supply chain? If so, how far does that responsibility extend--to immediate suppliers, the suppliers' suppliers, or beyond?

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Free Chegg Answer

A firm's operations vary from one country to the other depending on the rules and regulations of the country it is operating in. It needs to follow the legal and ethical standards of that country and need to obtain all the required legal documents of that country. It cannot always follow the domestic market and need to adapt to various market conditions of that country. Hence their operations abroad must be judged by the standards of the country in which they are operating. A firm is responsible for the activities of its supply chain but only to some extent. The activities inside the firm like production are the responsibilities of the firm but the activities of the suppliers of its suppliers cannot be controlled by the firm. It can set some standards for its suppliers but not for the suppliers of its suppliers.