International Business, a Universal Morality and the Challenge of Nationalism

Abstract

The ideal of a Supreme Morality espoused by the Institute of Moralogy presents a refreshing contrast to the cultural relativism characteristic of much contemporary intellectual thought. Support for this ideal can be found in the application of Kant’s ideas to business transactions. In the international area, the following propositions can be derived: as business becomes more global, employee honesty will tend to rise, bribery will decrease, trust-based organizations will achieve comparative advantage and discrimination based on taste or misinformation will decrease. At the same time, these trends should support another goal of the Institute -- world peace. International commercial interconnections should cause war to become too destructive, too expensive and too economically irrational.

The primary force which threatens to undermine this optimistic view is the destructive power of nationalism. International competition which is viewed primarily as a competition between nations can be harmful. There are examples of this in the trade war between Japan and the United States. Similarly, competition between trading blocks can be harmful. One specific issue involves the role of keiretsu in blocking entry into Japanese domestic markets. The issue is not whether keiretsu are good or bad. Rather, keiretsu practices should be internationalized rather than nationalized. Open competition among internationalized companies which recognize international stakeholders is an ultimate solution.