Skip to main content
SpringerLink
Log in

TNCs and the corruption of GATT: Free trade versus fair trade

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

In order to enrich global corporate culture, a distinction must be made between the economic ideology of free trade and the moral ideology of fair trade. GATT has failed to make this distinction. Its sole ethos of free trade is only applicable among developmentally equivalent nations, and has been used by TNCs as a means for attaining their commercial ends in the third world. GATT's lack of commitment to an objective of fair trade necessitates its replacement. This article suggests a replacement in the form of a network of trade organizations. The network takes the form of a “hub-and-spoke” arrangement, in which the hub would be the Global Trade Organization, and the spokes would each represent Regional Trade Organizations.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Allmon, Dean E. and James Grant: 1990, ‘Real Estate Sales Agents and the Code of Ethics’,Journal of Business Ethics 9(10).

  • Ball, Donald and Wendell H. McCulloch Jr.: 1990,International Business: Introduction and Essentials, Fourth Edition (BPI-Irwin, Homewood, IL), pp. 9–11, 18, 244–246.

    Google Scholar 

  • Bannock, G., Baxter, R. E. and Rees, R.: 1972,The Dictionary of Economics (Penguin Books, London).

    Google Scholar 

  • Bartlett, Christopher A. and Sumantra Ghoshal: 1989,Managing Across Borders (Harvard Business School Press).

  • Dolecheck, Maynard M. and Carolyn C. Dolecheck: 1989, ‘Ethics: Take It From The Top’,Business, Jan–Feb–Mar, 12–18.

  • Dunkel, Arthur: 1991, quoted in ‘GATT's Last Chance’,The Economist June 1–7, pp. 13–14 and 65.

  • Ekins, Paul: 1989, ‘Trade and Self-Reliance’,The Ecologist 19(5).

  • Gatt: ‘Studies in International Trade, Industrial Pollution Control and International Trade’, GATT, Geneva 1971, p. 239.

    Google Scholar 

  • Getz, Kathleen A.: 1990, ‘International Codes of Conduct: An Analysis of Ethical Reasoning’,Journal of Business Ethics July9(7).

  • Goldsmith, E.: 1990, ‘The Uruguay Round’,The Ecologist November/December20, pp. 202–204.

    Google Scholar 

  • Hall, B.: 1986,Who Owns Whom, Winter ed. (quote taken fromThe Ecologist, see Goldsmith).

  • Keohane, Kieran: 1989, ‘Toxic Trade-Off: The Price Ireland Pays for Industrial Development’,The Ecologist July/August19(4), 144–146.

    Google Scholar 

  • Klein, Sherwin: 1988, ‘Is a Moral Organization Possible?’,Business and Professional Ethics Journal Spring7(1).

  • Moore, Norman H., Stephen W. Pruitt and Maurise Tse, K. S.: 1990, ‘What Price Morality? South African Divestment Decisions and Shareholder Wealth’,Working Paper from Indiana University School of Business, appendix.

  • Multinational Production Enterprises, UN Industrial Development Organization, September 10, 1985, pp. 1–3.

  • Peng, M. K. K.: 1990, ‘The Uruguay Round and The Third World’,The Ecologist November/December20, 208–213.

    Google Scholar 

  • Raghavan, C.: 1990, ‘Recolonization: GATT in its Historical Context’,The Ecologist November/December20, 205–207.

    Google Scholar 

  • Rostow, W. W.: 1960,Stages of Economic Growth, publisher unknown.

  • Shrybman, Steven: 1990, ‘International Trade and the Environment: An Environmental Assessment of the General Agreement on Tariffs and Trade’,The Ecologist Jan–Feb20(1), 30–34.

    Google Scholar 

  • Smith, Kirk R.: 1988, ‘Air Pollution: Assessing Total Exposure in Developing Countries’,The Ecologist Dec.30(10), 20.

    Google Scholar 

  • Thomson, Koy and Nigel Dudley: 1989, ‘Transnationals and Oil in Amazonia’,The Ecologist Dec.19(6), 219–224.

    Google Scholar 

  • UN Centre on Transnational Corporations, Environmental Aspects of the Activities of Transnational Corporations: A Survey, UN New York, 1985.

  • Vitell, Scott and Donald C. Davis: 1990, ‘Ethical Beliefs of MIS Professionals: The Frequency and Opportunity for Unethical Behavior’,Journal of Business Ethics Jan.9(1), p. 63.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business Administration, California Polytechnic State University, 93407, San Luis, Obispo, CA, USA

    John Dobson

Authors
  1. John Dobson
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

John Dobson is currently an Associate Professor of Finance at California Polytechnic State University in San Luis Obispo. His primary research interests are Agency Theory and Financial Ethics. His publications include articles and letters inJournal of Business Ethics, Financial Management, Business in the Contemporary World andBusiness and Society.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Dobson, J. TNCs and the corruption of GATT: Free trade versus fair trade. J Bus Ethics 12, 573–578 (1993). https://doi.org/10.1007/BF00872381

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF00872381

Keywords

Search

Navigation