The paper "Legal and Ethical Issues in International Business " is a perfect example of business coursework. One sure thing every investor must be aware of is that each country is different from the rest of the world based on their political, cultural and legal ideologies which inform their values. This clear to those businesses that have global touch and that interact in different markets across the world. Different countries have different policies and legal systems regarding the ways of doing business and which all corporations have to comply with.
One major reason to have legal and ethical policies is to ensure that any uncertainties that may arise from the changing patterns in the business environment. Since not all organizations are local, multinational companies are the ones greatly affected by the prevailing laws (August 2002). It, therefore, emerges to be a very important thing for the business to take into account the various issues related to legal and ethical while operating in foreign markets. The intention of this discussion is to present a detailed review of the different legal and ethical issues facing multinational companies and also establish if the affected companies should be bound by domestic or interactions legal and ethical issues. Legal issues There are three major legal issues that face multinational corporations today and they include operational issues, strategic issues and intellectual property issues. Operational legal issues According to the legal issues, companies are expected to comply with domestic laws on starting, operating and closing down the business.
This can be expanded into the requirement that such activities like recruiting employees, acquiring credit, paying taxes, enforcing contracts and protecting investors as well as trading across borders, be done according to the existing legal standards (Kobak et al 2002).
As a principle, it’ s at the expectation of the investors that the existing business legal policies are efficient and take into account the changing patterns in the business world. In other words, the regulations should be well designed, readily available and clear and precise in implementing them (August 2002). In an actual business context, business regulations, tend to vary from one country to another. Take an example of the business registration process for a foreign investor in Brazil and the united states.
In the case of Brazil, a foreign investor trying to register a company may take up to 150 days while in the United States, the exercise would only take one week and this is because of the variability in protocol and document verification process before allowed to start a company. As a matter of fact, the latter scenario is a little bit fair and can easily be accommodated while the Brazilian’ s case remains a bit more complex. Virtually almost all countries have specific regulations in regard to registering businesses, determining the most appropriate structure and getting licenses as well as permits.
However, while other countries are good expediting this process, the reverse is through in some other countries. Take an example of Australia and Chad from Africa. While the process of starting a business in Australia can take just one registration process that encompasses taxation and administration as well as labor declarations, the process in Chad entails 19 different procedural requirements and takes up to 95 days as opposed to Australian’ s.
These are example variances that take place in different countries and in different aspects like hiring and retiring employees, enforcing contracts, getting out of business and even relationships with institutions in terms of operations (Kobak et al 2002).
August, R. (2002). International business law: Text, cases, and readings. Englewood Cliffs, NJ: Prentice Hall.
Simpson, G. R. (2002). U.S. firms’ overseas transfers bring an intensifying backlash. Wall Street Journal, p. A4.
Winestock, G. & McKinnon, J. (2002). EU gets approval to impose tariffs on U.S. products. Wall Street Journal, p. A3.
Kobak J. B. Jr., Landers, P. & Warner, M. A. (2002). The globalization of competition law in the new millennium. Global Economy Quarterly, II, 149–164.