Premium Essay

Legal Environment of International Business

In: Other Topics

Submitted By elewade
Words 1376
Pages 6
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 made- Pacifica decides to set new tariff rates on cars imported into its territory, this should not be done because the National Treatment Rule states that all goods should be treated equally.
In conclusion, from the above analysis we can see this trade policy is not permissible because it is against some World Trade Organisation rules and National Treatment rules, this policy can only be…...

Similar Documents

Free Essay

Business Legal Environment

...Assignment: Basic Case analysis Course Name: Legal Environment of Business Course Code: COB202 Class: DC7, DC10, DE1, DE2, DE3 Page of document: 2 ------------------------------------------------------------------------------------------------------------------------------- CASE ------------------------------------------------------------------------------------------------------- [Paragraph 1] The Federal nanny is meddling again. This Time she has swooped down on Minden, Neb., and is demanding the right to dictate the scheduling of athletic events. [Paragraph 2] A disagreement had been brewing in Minden over the fact that boy teams often play other schools on Friday or Saturday evenings, leaving weeknights or late afternoon slots for girl teams. Someone complained to the U.S. Education Department’s civil rights office. The school signed an agreement in 1993. Critics said the agreement didn’t go far enough. Now the school district faces a $200,000 federal fine if it doesn’t accept even more direction from the federal nanny. [Paragraph 3] Federal officials want the Minden district to alternate boys and girls events on “prime” days and during “prime” times. A prime day is one with no school the next day. Prime time is anytime after 6 p.m. The 1993 agreement required Minden to rotate girls and boy basketball games to provide an equivalent amount time of prime-time games. Now the government wants to add the prime-days requirement, as well as extending its......

Words: 426 - Pages: 2

Free Essay

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

Free Essay

Legal Environment of Business

...Legal Environment of Business Unit 2 Discussion Board American Intercontinental University Online November 14, 2012   Legal Environment of Business There are three types of bankruptcy – Chapter 7, Chapter 11 and Chapter 13. This discussion board post will discuss who can file Chapter 7 bankruptcy. Also discussed will be reasons why people file bankruptcy and how interest rates on loans and credit cards are affected by bankruptcy. The Chapter 7 bankruptcy is also referred to as liquidation, Chapter 11 bankruptcy is the reorganization of debt and Chapter 13 bankruptcy is the adjustment of debts of an individual with regular income (Types of Bankruptcy, 2011). An individual may file bankruptcy if they reside in the United States, within the last 6 years must not have been approved for a Chapter 7 release, and must not have been dismissed for bankruptcy filing within the last 180 days (Chapter 7, 2012). Within 6 months of filing for Chapter 7 bankruptcy, a person must also complete debt counseling classes and must pass a means test. A means test is a financial test given to see if a person qualifies for bankruptcy (Chapter 7, 2012). Although there are many reasons why a person would file for bankruptcy, only a few reasons will be mentioned in this discussion. The number one reason for filing for bankruptcy is medical expenses. Forty-two percent of those who filed for bankruptcy in 2010 were due to medical expenses. Twenty-two percent of bankruptcies were due to job......

Words: 415 - Pages: 2

Premium Essay

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

Free Essay

Legal and Ethical Environment of Business

...Legal and Ethical Environment of Business your T name AMERICAN INTERCONTINENTAL UNIVERSITY Abstract How important is it to have freedom to contract and practical commerce and be technologically neutral. Can you create a new computer chip design it , bubble wrap it and ship it for sale and still have ownership of that computer chip? With the Uniform Commercial Code and Uniform computer Information Transaction Act they will shed light of how you are protected by the government. Not just consumers but business are govern a like . . Before the UCC and the UCITA, the first U.S attempt to promote uniformity in commercial laws from state to state is the commerce clause. The commerce clause of the constitution, provides congress with authority to regulate business in different states. The commerce clause extends to all instrumentalities of interstate commerce as well as to intrastate conduct that has substantial effect on interstate commerce. The UCITA is intended to facilitate the licensing of computer related intellectual property, with an emphasis on permitting owners of software the ability to maintain control over their intellectual property forever. The UCC is designed to facilitate the sale, shipment and delivery of tangible goods identified in a contract. The biggest difference I see between UCITA and UCC is UCITA gives the software designer control of their property even after sale of their......

Words: 485 - Pages: 2

Free Essay

Legal Environment of Business

...|Doctorial Comprehensive Strategic |Assignment 5- Legal Environment of Business | |Knowledge | | | | | Faculty Use Only Legal Environment of Business Introduction Organization, especial while the company transitions from private to public ownerships in few months. They would like to have descriptions and analyses of vital economic and legal factors that may affect their horizontal construction company while it grows both domestically and internationally. Accordingly, this paper will discuss and analyze findings of some pertinent legal and economic factors, employment, and labor laws, equal opportunity, labor relation law, consumer protection, environmental protection, and anti-trust law as regards to present domestics and international standardized economics, legal, and regulatory guidelines for the host country. Emphases will also be placed on the relevance of these factors as regards to succeeding in the global/international marketplace. Building Trust and Transparency with Regulators The first and......

Words: 1895 - Pages: 8

Premium Essay

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

Premium Essay

International Business Environment

...1. International business environment Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s......

Words: 3378 - Pages: 14

Free Essay

Review of the Legal Environment of Business

...While there are many legal factors to consider as XYZ Construction (XYZ) transforms from a private to a publicly owned company and expands operations globally, this paper will focus on the employment and labor laws, along with legal considerations that influence company operations. It is important to keep in mind that XYZ uses a mix of manning methodologies throughout the company; a full time staff as the core of the company, while maximizing the use of contracted labor in the execution of projects. Employment Law Employment law is a broad category of law that encompasses all areas regarding employee/employer relationships except for the negotiation process and collective bargaining, which is covered by the narrower focused category of labor law. Employment laws consist of thousands of federal and state statutes, regulations, and judicial decisions that are designed to govern the rights and duties of employers and workers. The US Department of Labor (USDOL) reports that there are 180 federal laws alone managed by 28 different agencies within the department. (United States Department of Labor [USDOL], 2014) Employment laws are focused on providing a safe and fair work place for employees and employers, alike, and have their origins in the constitution. They were founded based on public outcry against oppressive practices during the industrial revolution. The first laws founded in the 1920s were focused on fair wages, compensation for injuries, a standard work week,......

Words: 2498 - Pages: 10

Premium Essay

Legal Environment of Business

...INTERNATIONAL LEGAL AND ETHICAL ISSUES IN BUSINESS Legal Environment of Business Instructor: Leslie Dunn By: Janet Hutchins American Intercontinental University Abstract This paper is concerning ethical issues faced by an employee who while working for her first corporate job right out of college has started to lose her idealism after being employed for only 4 months. She has assisted company executives here in the U.S. and in many European countries. While she has a primary boss in the U.S. offices, she has had many secondary bosses in Europe. During this short period of time, in both her departments in the U.S.A and in Europe, she has witnessed employees that come to work while under the influence of alcohol and even drinking while at work. She has seen employees on a regular basis arriving late and leaving early for work and also using company computers for personal reasons. Her department manager is so easy going and seems to be more concerned with being everyone’s friend than their boss and if he is aware of these issues, he turns a blind eye. Although she has tried to bring the subject of these issues to him, he seems unwilling to even discuss them with her. She is a hard worker and follows rules and always thought the majority of other employees would also. This paper will take a look at her options and research the differences between business and cultural ethics in the U.S and in Europe. The challenges she will face if she decides to file a complaint...

Words: 2607 - Pages: 11

Premium Essay

International Business Environment

...Every small, medium enterprise’s dream is to be able to trade on an international platform, just like how every little kids dream of their ambitions. However, in the process of pursuing that dream, many of these kids were steered away and diverted due to the various situations and experienced that moulds them as a mature being. A business organisation surprisingly, shares a common conduit, but in a whole altered state, even more complex because of the immersion of different cultural, social, economic, political and legal forces. All those forces play a vigorous part in the success of business, especially when an organisation decides to go international. For example, let’s apprehend the case of Tesco breaking through the South Korean market in the year 1999. Tesco’s nifty idea to form a joint venture with the giant electronic company, Samsung, has ever since becomes the core of its growing success to be one of the biggest retailer in the world. Lucky for Tesco, the collaboration made the whole process of understanding the external environments which otherwise would require even more cost and time consuming. For example, Tesco gained new in depth knowledge about how the local market works, and acquire the best locations for store. In addition to the advantages, Tesco accomplished well to meet the demand of the Korean consumers, localize their stores and also introduce its own way of work to the South Korean country. Evidently these external forces are essential for the future......

Words: 437 - Pages: 2

Premium Essay

International Business Environment

...1. International business environment Book0)Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s......

Words: 3396 - Pages: 14

Premium Essay

International Politcal-Legal Environment in Marketing

...THE INTERNATIONAL POLITICAL LEGAL ENVIRONMENT THE POLITICAL ENVIRONMENT International marketing activities take place within the political environment of government institutions, political parties and organizations through which a country’s peoples and rulers exercise power. Each nation has its own political culture, which reflects the relative importance of the government and legal system and provides a context within which individuals and corporations undertake their businesses. Any company doing business outside its home country should carefully study the political culture in the target market. The political culture requires the firm to understand the following: 1. Political risk analysis 2. Indicators of political instability 3. Attitudes of nationals 4. Policies of the host government 5. Management and measurement of political risks 1) POLITICAL RISK ANALYSIS International marketers face a number of political risks. The many risks posed by the host government might include: i) Confiscation ii) Expropriation iii) Nationalization iv) Domestication v) Creeping expropriation a. General instability risk b. Operation risk c. Transfer risk Confiscation is the process of a government taking ownership of a property without compensation. For example the government of Zimbabwe recently confiscated the property of white farmers under the reign of President Mugabe without any compensation or room for......

Words: 2141 - Pages: 9

Premium Essay

Review of the Legal Environment of Business

...Review of the Legal Environment of Business This paper is written as an informational document for business executives on the economic and legal factors that affect company transitions from private to public ownership. Mason (2011) stated there are three top reasons that business entities transition from privately owned to publically owned are as follows: (1) Boatloads of cash. (2) Brand awareness. (3) Playing with the big dogs. When a company goes public, it is really trading for a large amount of cash for profitability and growth. The initial public offer (IPO) is the instrument that represents stock or the representation of what a person or entity puts up as cash for the funding of the company’s desire to make more money. The issuance of an IPO changes the company’s culture that now it must focus on long-term results that previously the focus was on short-term returns. The cost of IPO issuance is very expensive. The cost include the satisfaction of the accounting and legal costs associated with being publicly-traded. When a company decides to go public, it gets an enormous amount of press, consumer awareness and exposure for new products relating to brand awareness. Brand awareness is a primary factor for the success of the decision to becoming publically owned. Business Week lists just 33,000 public companies around the world (Mason, 2011). After an IPO, a company is free to use that cash however it sees fit, and it never has to repay a penny. However, the costs is so......

Words: 1449 - Pages: 6

Premium Essay

International Business Environment

...University of Nottingham Ningbo China Business School Academic Year 2015/16 Autumn Semester INTERNATIONAL BUSINESS ENVIRONMENT Lianxi Zhou EBay: China and India External Business Macro Environment Entry Report Group 2 Hugo John MASON; ID: 6513963 Boon Long Tan; ID: 6512494 Sung Jun PARK; ID: 6508247 Yasong ZHAO; ID: 6511938 Word Count: 3000 Table of Contents Introduction 2 China 3 Political Environment 3 Political and Legal System 3 Five Year Plan 3 One Belt, One Road 4 Risk 4 Economic Environment 5 Market Size 5 Currency 5 FDI 6 Socio-Cultural Environment 8 Guanxi 8 Hofstede’s Model of National Culture 9 China Recommendation 11 India 12 Political Environment 12 Political and Legal System 12 Opportunity 13 Risk 13 Economic Environment 14 Market Size 14 Currency 14 FDI 15 Regional Trade Blocs 16 Risk 16 Socio-Cultural Environment 17 Socio-Demographic 17 Trust and Uncertainty Avoidance 17 Human Resources 18 India Recommendation 19 Reference 20 Appendix 25 Introduction In recent decades a global shift has arisen and revolutionized the way businesses operate as we move into a more integrated and interdependent global economy. Known as Globalization, the e-commerce industry has been the crux of such a radical metamorphoses of nations. National economies are no longer self-contained and independent. China, having one of the fastest growing e-commerce markets at 22.6% (iResearch, 2014)......

Words: 4821 - Pages: 20