Sample Answer

Domestic manufacturers working with international suppliers can face a range of social and labor issues. These can include:  

• Labor Rights Violations: This includes issues like forced labor, child labor, and unsafe working conditions. These practices are often hidden within complex supply chains, making it difficult for companies to ensure ethical sourcing.  

• Low Wages and Poor Working Conditions: Many developing countries have lower labor standards, leading to concerns about exploitative wages and poor working conditions for factory workers.
• Environmental Concerns: International suppliers may have less stringent environmental regulations, leading to potential issues like pollution and resource depletion.
• Cultural Differences: Misunderstandings and communication barriers can arise due to cultural differences in business practices, communication styles, and ethical expectations.  

Why Understanding Cultural Background is Important

Understanding the cultural background of a foreign supplier is crucial for several reasons:

• Building Trust and Relationships: Cultural awareness helps foster better communication and build stronger, more trusting relationships with suppliers. This can lead to more effective collaboration and a smoother supply chain.