International and Legal Business

In: Business and Management

Submitted By asisgirl
Words 1186
Pages 5
When a business firm is looking to expand to new locations a popular place is East Asia. Two popular countries are Thailand and Taiwan. It is pertinent to know what is going on in these countries before expanding a business into them. This includes things like environmental regulations and their wage and working hour regulations. These things are important because a company wants to expand they want to ensure that they will still be held in a respectable manner by other business because they are doing things that are considered to be ethical. Thailand’s environmental regulations are constricting more and more every day. Thailand has the eighth largest petrochemical hub in the world, this has stopped production in order for the amount of harm that this does to Thailand’s’ environment to be calculated (Watcharasakwet & Hookway, 2010). There are also many companies such as Ford Motor Company that are now wondering what they should do because of their plants that are in Thailand. Ford is also unsure of what to do because they are planning on building a new plant but are unsure if they will due to the new environmental regulations. The strict regulations on the environment are currently hurting Thailand economically then what it is being helped in the environmental aspect (Watcharasakwet & Hookway, 2010). Taiwan is a different situation than Thailand. Thailand was shocked when production of large companies and their economic giants came to a halt in order to measure the amount of damage that is being done to the environment. Taiwan slowly, since 1987, has implemented new environmental regulations to help curb the amount of damage to the environment by big companies (Tao, n.d). They gave them an amount of time to remedy certain situations and took steps in the process. Some of the steps included the amount of solid waste that was to go to landfills and the amount of…...

Similar Documents

International Legal and Ethical Issues in Business

...International Legal and Ethical Issues in Business unit 1 individual project Introduction In the scenario of the company’s upcoming meeting with the chief executives officers of the company, (CEO) this would be a great opportunity to present the potential defective products, that’s being sold to the customers and potential customers. Not only to the directors but to the executives as well As this is a very serious issue that cannot be over looked, that could cause a plague throughout the organization... this defective product could pose a risk For both the customers and the company. And cause millions of dollars in lawsuits, the businesses reputation, unsatisfied customers, and ultimately putting the company at risk of going out of business. Since the new executive may not be aware of the potentially defective product; nor of the company’s ethical guidelines; due to the lack of effective communication. However, as leaders of the organization all are accountable and responsible for the actions by the organization... as leaders are the pillars of the organization; i.e. directors, managers, internal auditors, and external auditors. Leaders must be an example of honesty, and accountability. “To be effective, all four must operate separately or it will cause a substantial amount of damage. (As cited in clarity begins at Home, 2002). Body Therefore the purpose of this assignment to discuss and prove the internal action of a defective product and how to ethically,......

Words: 1353 - Pages: 6

International Legal and Ethical Issues

...International Legal and Ethical Issues Contemporary Business Law-LAW/421 Dina Centifanti Gledhill May 28, 2012 International trade is important and beneficial to business. However international trade must be guided with a safeguard of interests, specific business contract, defined law, forum of dispute settlement, and understanding of contract clauses. “A working knowledge of international law helps business owners and managers with global interests reduce risk and increase profits” (Melvin, 2011, P. 631). This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. Resolving legal disputes Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must use precaution to avoid ethical, legal, and cultural issues. Business must prepare for the unexpected to ensure success. Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Foreign businesses commonly use contracts for the international sale of goods as standard law. “Contracts for the international sale of goods was created by the U.N. Commission on International Trade Law to establish uniform rules for drafting certain......

Words: 652 - Pages: 3

International Legal & Ethical Issues in Business

...International Legal and Ethical Issues In Business Several issues keep emerging in the current business world. Some of these issues are legal while others are ethical. The management of modern organizations must ensure that their human resources have desirable ethical behaviour. This will ensure that their organizations maintain their clientele and in turn increase their profit margins. How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers? A potential defective product can cause injuries if taken lightly regardless of whether the company’s ethical guidelines have been communicated. Such situations can cause significant legal repercussions and destroy the reputation of a company, which can cost the company if proper steps are not followed in correcting it. Normally, the senior management in current organizations fails to know what is happening at the ground level and it is the duty of the employee in charge to give out a report (Edwards, 2008). During such a presentation to the top management, it is important for one to give out sampled evidence to support the allegation in an honest manner. This should be made in comparison to the actual products to bring out the difference. Physical evidence brings out product defects and it will challenge the top management to act fast to avoid legal battles with the consumers (Brooks, 2012). How would you specifically notify customers of such an occurrence? It is......

Words: 921 - Pages: 4

International Legal and Ethical Issues

...International Legal and Ethical Issues Lori Hall LAW/421 December 18, 2012 Corey Frost International Legal and Ethical Issues When one company decides to take legal action against a foreign business partner in another company it is important to not only have an understanding of their local laws but also cultural differences, customs, and language barriers. All of these items could present possible barriers to resolving legal disputes associated with international transactions. Any company doing business abroad must be mindful of the pitfalls of international business, ensuring that the contract entered into is legally enforceable, the contract must protect the company’s interests in the foreign country against all eventualities, knowing that possible disagreements and disputes are common in the international trade arena. This paper will outline the legal, ethical, and cultural issues of doing business abroad. Issues Involved In Resolving Legal Disputes First, business contracts must clearly specify which laws will govern the business decisions that will be made, whether it is American law, local country laws, or popular international convention. One should note that international laws are broad terms establishing a series of customs that countries and businesses agree to adhere to when dealing with each other and that international laws are binding; however, largely based on reciprocal behavior rather than legal sanctions (Melvin, 2011). Some issues involved......

Words: 990 - Pages: 4

International Legal and Ethical Issues in Business

...Valid Contract Unit 3 IP Penelope Manzo BUSN310-11-2B-06: International Legal and Ethical Issues in Business American Intercontinental University James Lange Valid Contract A valid contract is an agreement that is backed-up by the courts. The contract is valid if it meets all four elements, which includes: an agreement, valuable consideration, competent parties, and legal purpose. The agreement must be a compromise from both parties, and the intention of all terms of the contract must be agreed upon from both parties. Before the contract can begin, both parties must make clear each intention, detailed, and both parties must have a clear understanding. The agreement must have an offer and an acceptance, which must include both parties. Next, a valuable consideration, in which each party are required to give up something of value or refrain from exercising a legal right in an agreement, such as the initial agreement. The third element, competent parties means all parties must possess the legal capacity to enter into the contract. This means the state jurisdiction must be met, all party members must be of legal age within the state, and must be of mental competence. Lastly, legal purpose, the contract must have a legal purpose and not contrary to the public policy. These four elements must be agreed upon and meet before a contract becomes valid. According to US Legal Definitions, Objective theory of contract is a “doctrine which states that a contract is not......

Words: 1137 - Pages: 5

The Cultural, Political and Legal Environment of International Business

...al The cultural, political and legal environment of international business Abstract A study of the elements of a domestic market and those of an international market may reveal many crucial differences, especially political, legal and cultural differences. For example, the "rules of the game” of business in the international market are diverse, changeable and often unclear. The international firm may have to content with different legal and ethical standards in different host countries. In this paper the parameters of the political, legal, and the cultural environment of international business will be considered, The paper also relates how political, legal, and cultural incidents or situations may become roadblocks to the smooth operation of business ventures in foreign countries. Misunderstandings and breakdown in communication often arise from differences in perception by executives who are not from the same cultural, legal and political background. International investors need to know what elements in a foreign culture have the greatest influence over consumption patterns in general and particularly the consumption behaviour to their specific product. By reflecting on the language, religion, demography, climate, values and beliefs, education, labour, roles of women, family, ethnic groups and other similar elements, the international business person will be able to, not only participate in the international economy with a better perception of the situation, but also be......

Words: 6545 - Pages: 27

International Legal and Ethics Issues in Business

... a secondary could be expansion, an initiative to become a globally known brand and gain international market share. Once the fundamental question of “why” is answered, the remaining issues, such as foreign government policies, can be addressed as well. So should a company comply or defy? Proponents of both sides of the fence are up in arms and ready to debate their stance. Proponents argue loss of market share if a company decides to leave a potentially new market, especially an international market. And proponents of defying the compliance terms are citing moral and ethical beliefs which make it wrong to comply with a communist government (http://hbswk.hbs.edu/item/5246.html). So who is the victim and who is the winner? I think that both sides are equally at loss as well as gain. If a company decides to leave due to compliance issues, chances are their competitor will step in and dominate that market. It is often difficult for a company to enter into the market as a secondary and gain market share. Foreign investments are both risky and expensive to finance, organizations determined to gain market share should certainly comply with the rules and regulations of the foreign market in which they wish to do business in. On the other hand, do we forego our moral and ethical values simply because we are on foreign soil? Are companies allowed to change their business culture and organizational environment for the sake of foreign market......

Words: 327 - Pages: 2

Geopolitical and Legal Factors in International Business

...Chapter 02, Geopolitical and legal factors in international business Geopolitics is the study of the influence of political and economic geography on the politics, national power, and foreign policy of the states. It’s the combination of geographic and political factors influencing a country or a region. It is also the national policy based on the inter-relation of politics and geography. Geopolitics combines the study of geography with the study of politics. Geography refers to a physical landforms, size and resources while politics refers to relations between among state origin. The geopolitical environment refers to a region’s political situation while considering the countries’ geography, history, economic situation, religion, culture, and governmental structure. It may also relates either to a single to a single country situation or the one of an entire continent. The geopolitical environment of the Middle East for example is frequently discussed. Launched in the beginning of the XX century by Swedish politic scientist, Rudolph Kjellen, it has become a popular term used by political scientist, historians, etc. The analysis of a region’s geopolitical environment attempts to get a sense of the values aspect of a region’s politics, culture, and industry. The geopolitical environment may vary overtime, even tough the geography may remains static, the changing world environment can affect an area’s political power. As the world in presently depending on......

Words: 503 - Pages: 3

International Legal and Ethical Issues

...International Legal and Ethical Issues Several issues were addressed in the simulation pertaining to international legal and ethical issues relating to business. There were many issues portrayed in resolving international legal disputes including the full understanding of the local laws and the choices surrounding law and dispute resolutions. The text states, “Whenever a U.S. firm enters into a contract situated in a different country, it should make sure the agreement is officially enforceable” (Melvin, 2011). To fully understand the local laws in an international business transaction a corporation would have to find answers to questions regarding foreign exchange controls, environmental issues, and required governmental consents.. The answers to these questions will help the CEO and legal team move forward in creating a contract that is agreeable to both parties. Choosing the correct law clauses to agree upon during negotiations is one of the most vital considerations of taking legal action against a foreign business partner. In the situation of CadMex, the Candorean Regulations for Technology Import Contracts would be the best selection (University of Phoenix, n.d.). This clause would be the most beneficial because Candoria would most likely impose their government’s laws and regulations. Sublicensing would most likely work for CadMex. However,......

Words: 509 - Pages: 3

Legal Environment of International Business

...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were......

Words: 1376 - Pages: 6

Legal Environment of International Business

...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were......

Words: 1376 - Pages: 6

International Legal & Ethical Issues

...Addressing International Legal and Ethical Issues LAW/421 December 18, 2013 Addressing International Legal and Ethical Issues International legal and ethical issues are extremely important to know how to deal with when you are going to join into or do business in any other country other than the U.S. In this stimulation of CadMex Pharma and Gentura, they are facing several international contracts, transactions, ethical issues and sublicensing agreements. CadMes Pharma is a pharmaceutical company in the U.S. who offer quick manufacturing techniques and has dealt with global issues often. Gentra is a biotech company in the country of Canodre which have the licensing rights to a hypothetical anti diabetic drug. CadMex Pharma’s goal is to grow financially by being able to distribute and supply this medicine for Gentra in the U.S. All countries have their own set of laws and ethics that are required to be followed, unless you have a contract in place with the company or country that you are involved in business. * What are the issues involved in resolving legal disputes in international transactions? Making a choice on which way to handle these transactions are vital, when dealing with international disputes. One choice is the Contracts for International Sale of Goods. This is not very effective because Canodre changed status and became part of the WTO. When one of the parties is not a signatory of this program, then the other party is more likely to use......

Words: 842 - Pages: 4

Legal Environment International Business

...Studying Legal Environment of International Business INCOTERMS ------------------------------------------------- General Transport[edit] EXW – Ex Works (named place of delivery).[edit] The Seller makes the goods available at his/her premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer. FCA - Free Carrier (named place of delivery)[edit] The seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the......

Words: 2038 - Pages: 9

International Legal and Ethical Issues in Business

...Unit 1 Individual Project International Legal and Ethical Issues in Business American InterContinental University It is know that is anyone in the business world has legal obligations to keep their employees and customers safe. The first thing that I would do is call a meeting with the CEOs, directors, and managers, present the potential defective product to the boards as an issue and explain to them exactly what the defect in the product is. The CEOs, directors, and managers will know that everything possible is being done to protect the consumers from any hurt, harm or danger of this potential defective product. I would advise everyone to follow all company policies and procedures of what to be done in the event of a failed product. If there is a possibility that there is a defect in a product of a company, after making the CEO and other personnel of the company aware of the issue, the next step is to make the customers aware of the issue. A company will not be in business for long if they decide to ignore its customers. The most effective way to notify customers of a defect in a product is by recalling the product. This is to contact them by mail or email with a letter of a possible defect in the product, set up special phone lines...

Words: 812 - Pages: 4

International Legal and Ethical Issues in Business

...Marian Malone International Legal and Ethical Issues in Business October 25, 2015 Abstract What kind of statements are companies allowed to make in their advertising campaigns to get noticed by the general public? How much of this advertising is taken seriously by the general public? Will a company be held responsible to follow through for their statements made in an ad campaign? We will examine these questions in this paper. Circumstance In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a TV commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each. The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form along with a demand for the Harrier jet. The company wrote back, stating that the Harrier jet in the commercial was simply used to created humorous and entertaining......

Words: 1566 - Pages: 7