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International Business Law
June 30, 2011 | Author admin
International business law is the practice of law
in the global business community. It includes a focus on economics and the law, international commercial transactions, licensing, tariffs and taxes, and many other topics. International business law varies by jurisdiction. It builds on top of basic business law concepts by expanding them to an international arena.
A study of economics and the law gives an attorney an analytical framework for considering legal and economic aspects of a particular policy as it relates to international commercial law. International business law is almost always related to trade or commerce in one way or another. Considering the economic impact of a specific transaction or a policy’s effect on transactions is an important part of this practice area.
Public international law issues affect commerce and trade in a variety of ways. The laws of several different jurisdictions come into play in each transaction. An analysis of the specific laws for each jurisdiction must be completed prior to determining which jurisdiction is best for a given transaction.
Trade agreements have a significant impact on international business law. Two or more countries may join together for a specific trade agreement in order to define certain aspects of commerce or trade. The North American Free Trade Agreement (NAFTA) is an example of a trade agreement. It is a trilateral agreement between the United States, Mexico, and Canada intended to reduce trade and investment barriers between the three countries. These types of agreements exist among many different countries and must be considered as one enters into a new set of commercial transactions.
Licensing of different property rights is a major issue in the field of international business law. A company in one country may develop a specific intellectual property. This company may then have the item produced in a different country, or it may license other companies the right to produce this item in many different countries. As each of these transactions is negotiated, the rights licensed or maintained by each of the different companies are the primary focus of the commercial transaction. The laws in each of the jurisdictions all play into how the transaction is negotiated.
Tariffs, taxes, and other mechanisms for regulating trade vary by jurisdiction. There are usually basic provisions for a country that can be modified by trade agreements among the different countries. These issues must be considered as one negotiates each transaction.
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Business Ethics
June 30, 2011 | Author admin
Business ethics is the behavior that a business adher
es to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer.
Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be calledcapitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.
Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses.
Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major deciding factor.
If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The problem is that the amount of money these companies are making outweighs the fines applied. Billion dollar profits blind the companies to their lack of business ethics, and the dollar sign wins.
A business may be a multi-million seller, but does it use good business ethics and do people care? There are popular soft drinks and fast food restaurants that have been fined time and time again for unethical behavior. Business ethics should eliminate exploitation, from the sweat shop children who are making sneakers to the coffee serving staff who are being ripped off in wages. Business ethics can be applied to everything from the trees cut down to make the paper that a business sells to the ramifications of importing coffee from certain countries.
In the end, it may be up to the public to make sure that a company adheres to correct business ethics. If the company is making large amounts of money, they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics, but in this competitive world, they are becoming very few and far between.
Best Strategies for International Business Growth
June 30, 2011 | Author admin
There are a number of factors to consider when looki
ng for the best strategies for international business growth. Healthy corporate growth and expansion into international territories requires a strong understanding of the market in different countries. International business growth often requires companies to overcome various barriers before establishing operations abroad. Overhead costs will also have to be taken into consideration for any company seeking to undertake international development efforts.
Understanding the market in a particular country will be crucial to the success of a company’s product in a new territory. The company may be used to getting a particular sales volume in one country, but will not necessarily achieve the same result in a different country. Multinational companies must understand how people in different countries are using their product. It is also important to establish competitive advantage over domestic products competing in the same industry or sector.
Figuring out how to transport products in a different country is part of the international business growth process. Foreign countries may have certain factors that prohibit a product from being transported in the same manner as it is in a company’s base country. For instance, industrial companies may have to consider the climate of the target country in order to come up with better product shipping methods. Rough and difficult terrain will also make a difference in how the company moves its products from one warehouse to another.
With every new venture, there will be barriers of entry that a company will encounter and must overcome. Certain countries may have restricted trade agreements that inhibit a product from a particular country from being sold and traded. There may also be high import tariffs exacted on a foreign company’s product. Companies which are undertaking international business growth will have to weigh the costs of exporting their goods or services to foreign countries against the benefits of having offices all over the world.
Opening up new operations abroad can be a very expensive operation. Overhead costs such as building maintenance, transportation and warehousing, and regulatory fees are all factors that will need to be budgeted for before a company decides to expand operations abroad. In addition to costs related to products and overhead, companies must consider the salaries and benefits for the employees. Companies should always analyze the salary structure of their industry in a specific country before deciding to open offices in that country.