According to K. Blanchard and N. V. Peale (The Power of Ethical Management, New York: Morrow, 1988), the following three ethical tests may be useful: (1) Is it legal or within company policy? (2) Is it balanced and fair in the short and long term? (3) Would you be proud if the public or your family knew about it?

Apply these tests to the following situations:

a. A foreign firm subsidizes its sales in another country.

b. A foreign firm dumps its products (sells them for less than cost) in another country.

c. A country imports products that, had they been made domestically, would have violated domestic laws (e.g., laws against pollution).