Global Finance Issues

Multinational Corporation (MNC) and Ethical Standards Multinational Corporations (MNCs) have usually faced several challenges with regards to developing standards that deal with issues associated with corporate social responsibility. These corporations are forced to embrace more specific ethical codes in their corporate strategy because of the materialization and growth of a global economy. In the recent past, multinational corporations have started rethinking strategies that may be regarded unethical based on international standards (Manakkalathil & Rudolf, 1995).

As a result, some people have argued that the corporations should lessen their ethical standards to compete globally. In contrast, others have stated that a multinational corporation to should retain its ethical standards to develop more credibility throughout the world. Proponents of this statement argue that an MNC should lessen its ethical standards because it may encounter some business laws that are not permitted in some countries.

For instance, a company operating in the United States can sometimes provide payoffs like expensive golf outing to government officials in charge of decision-making. This may not be acceptable when competing for a government contract in another country or may be forced to match the payoffs offered by its rivals. In contrast, opponents argue that these corporations should maintain an ethical code of standards that is applicable to any country, which enhances the global credibility of the organization.

Even though it is easy to propose that an MNC should maintain a standard code of ethics that is applicable globally, it would be difficult for the corporation to compete in certain cases. Nonetheless, an MNC should not lessen its ethical standards to compete globally because it is a global citizen. As a good global corporate citizen, an MNC should not lessen its ethical standards and express them as its corporate philosophy in any country.

Economic and Financial Issues Brazil is a country that is filled with natural resources and faces a series of unique set of economic and financial issues. One of the major economic and financial issues facing the country is inflation persistence that has been rising due to a substantial fall in the half-life (Roache, 2013). This issue can be described as the tendency of inflation rate to be pushed from its steady state by price shocks for a long period of time.

As compared to most of her IT peers, Brazil experienced an increase in inflation persistence in early 2013. The high rate of inflation persistence implies that the country does not have a monetary policy that can effectively accommodate temporary price shocks. Secondly, Brazil faces the need to scale up investment in order to increase probable growth over the medium term. Given the medium term decline in impulse from beneficial labor market dynamics, Brazil's economic growth would require accumulation and productivity gains.

Moreover, the country will need a material scaling up of investment that is adequate to increase its investment ratio closer to the average of its global peer group. Third, the country is facing the need to deal with demand imbalances that have characterized its economy over the.