Issues In International Business

PRESENTED BY:-

1.SOMU JENA

2.SUVASMITA BISWAL

3.RAJNI KANT SINGH

4.DOMAN HEMBRAM

5.BISWA BHUSAN MALL

ISSUES IN INTERNATIONAL BUSINESS

International business operations are subject to numerous legal regulations, as each country has a different set of regulations for business .

Those regulations can range from copyright issues to the distribution of securities and how contracts are drawn.

Additionally, the business's home country may have regulations that differ from those of the target country, which may complicate the legal strategy a business takes.

LEGAL ISSUES OF INTERNATIONAL BUSINESS

1.Jurisdiction

2.Intellectual Property

3.Taxes and Securities

4.Internet-Specific Issues

1.Jurisdiction

Jurisdiction is a primary issue for any international business, including e-business.

This refers to the ability of a legal body to make decisions and force an individual or business to abide by them.

Legal systems vary by country, although there can be similarities. For example, if a business is sued in one country and that country's judicial body makes a judgment, the business's home country may or may not recognize the judgment, depending on how its own laws are structured.

2.Intellectual Property

Intellectual property may be established in one legal jurisdiction, but can be more uncertain in another legal jurisdiction.

The areas of intellectual property most often considered are copyrights and trademarks.

If a business hires a web developer, certain steps may need to be taken to ensure that copyright has been appropriately transferred to the business from the developer. Likewise, trademarks must be registered in each country in which a business operates.

3.Taxes and Securities

Issuing shares in a business may be illegal without the prior approval of the target country's exchange commission or similar legal body.

This means that selling securities may require the consent of a large number of different authorities.

Taxation can represent an equally complex situation, both in terms of taxes levied on the business, but also sales taxes that various countries may or may not impose.

4.Internet-Specific Issues

International business is subject to sovereign regulation of the Internet.

For example, an e-business may be able to provide a link to another site, but how deeply they can link into another business's site can depend on that business as well as the copyright and trademark laws of its country.

Another legal issue that may be faced is that of cyber-squatting, which happens when a business or individual buys a domain name reflecting the trademark of another party and then attempting to sell it to them. This practice is illegal.

Ethical Issues In International Business

The Common Ethical Issues are:

1.Employment practices

2.Corruption

3.Human Rights

4.Pollution

Ethical issues in international Business:

The ethical-related issues have been approached since ancient times and have represented the foundation of different religions and life styles.

The ethics can be found in all aspects of human activity as the individuals have been preoccupied with the quality of their behavior towards the people around.

Even if they do not purposefully intend to improve their relations with the others, people always evaluate their behavior from the point of view of their correctness.

Employment

Wages and the working environment in overseas locations are often inferior to those in the United States, even when you fulfill all local legal requirements.

If you hire workers there, you face the issue of what pay and working conditions are acceptable. Applying U.S. standards is usually not realistic and often simply disrupts the established market.

An effective approach is to develop company standards which protect workers while fitting into the local economy. Your standards have to guarantee a living wage, protect the safety of your workers and establish a reasonable number of hours for the work week.

Corruption

Companies making payments to secure business that they would not otherwise obtain are guilty of illegal actions under the U.S.

Foreign Corrupt Practices Act. The payments, even if they seem to be customary, are usually illegal under local laws as well.

When your company makes such payments, it is encouraging a local system of corruption through unethical behavior. Smaller gifts, of a size that would not normally influence a major decision, are considered ethical in some societies and may be legal under local and U.S. laws.

If you find that large sums are routinely required to do any business in a country, you may want to reevaluate your decision to enter that market.

Human Rights

The country into which you are expanding may not respect basic human rights. The ethical issue facing your company is whether your presence supports the current abusive regime or whether your presence can serve as a catalyst for human rights improvements.

If you find that you are supporting a regime that oppresses its citizens, engages in discrimination and does not recognize basic freedoms, the ethical action is to withdraw from the market.

If you find that the regime allows you to observe human rights within your organization and that your presence moderates human rights abuses, you may actively work to improve local conditions.

Pollution

Not all foreign countries have environmental legislation that makes it illegal to pollute. Companies may discharge harmful materials into the environment and avoid costly anti-pollution measures.

An ethical approach to your expansion into such markets is to limit your environmental footprint beyond what is required by local laws.

An ethically operating company ensures its operations don't have harmful effects on the surrounding population. Since your company has the knowledge and expertise to operate within U,S. environmental regulations, it is ethical to apply similar standards in your new locations.

Social Issues In International Business

The Common Social Issues while carrying outInternational Trade are:

The Country with which we do international trade might be ruled by a corrupt leader or a party. Military rulers pose a serious threat for international business.

If the Home country and the trading country are at war. If two countries are at war then there wont be any international trade between them.

The Attitude of the host country towards foreign investment is negative. Host countries may impose special rules for MNC’s

If The country where we do our International trade lacks social infrastructure .Inadequate facilities may require a company carrying on international business to build housing, establishing schools and providing transportation facilities for the employees.

Government Interference is yet another Issue. If the government of a host country insists on becoming a partial owner Of the foreign business.

Environmental Issues in International business

Environmental issues are harmful effect of human activity on the bio-physical environment.

Environmental issues have been engaging increasing discussion in the international business horizon.

As in the case of some other social issues in the fore, the environmental issues raised are mostly which disadvantage the developing countries, ignoring or relegating to the background several serious which hold the developed nations or firms from such nations guilty.

Global Warming That global warming will cause calamitous trouble created around

the world. The major contributor to global warming is caused by a greenhouse effect due to massive carbon dioxide emission.

According to Shelley (2002), EPA has stated that the major contributor into the rising of greenhouse gases level is due to industrial and transportation activities involving the burning of fossil fuels as well as the deforestation.

Therefore, government intervention seems to be tremendously essential to combat with global warming issues.

However, this essay will focus more on how the government policies regarding on global warming specifically on fossil fuels combustion (oil, coal and gas) issue affect the international business including

the arguments. The positive and negative sides it could also be the opportunities and challenges.

Relocation of polluting industries from developed to developing countries

Developing countries are affected by the relocation of pollutingindustries from the developed it the developing ones. Similarly,several products which are banned in the developed nations aremarketed in the under developed world.

The dumping of nuclear and hazardous wastes in developingcountries and the shifting of polluting industries to thedeveloping countries impose heavy social costs on them. Theexploitation of the natural resources of the developing countriesto satisfy the global demand also often causes ecologicalproblems.

When the multinationals employ in the developing nationspolluting technologies which are not allowed in the developedcountries or do not care for the ecology as much as they do inthe developed nations, it is essentially a question of ethics.

Ban on importing some goods

Some countries prohibit the import of goods which cause ecological damage.

For example, the US has banned the import of shrimp harvested without turtle excluder devise because of its concern for the endangered sea turtles. Countries like India are affected by it.

Role of trade

The third concern about environmental issues is the role of trade relating to more social preferences.

Some practices may simply be unacceptable for certain people or societies, so they oppose trade in products which encourage such practice.

These can include killing dolphins in the process of catching tuna, using leg hold traps for catching animals for their furs, or the use of polluting production methods which have only local effects.

Labour Issues In International Business

• The Basic Labour Issues are:1.Child Labor2.Forced Labor3.Health and Safety4.Working Hours5.Low Wages

Labour Issues In International Business

One of the important social issues in the developed countries in respect of business with the developing countries pertains to ill treatment of labour and children.

Child labour used in the manufacture of exports from the developing countries is widely criticized by people in the developed countries.

For example, it is alleged that child labour is used by the carpet industry in India and some other countries and social activist in the developed nations demand ban on the import of goods embodying child labour. Consumers are called upon to boycott such goods.

Similar issue is the sweat labour. The argument here is that goods are manufactured by labour working in inhuman/unhealthy working conditions not getting fair wages should be banned or boycotted. Creating important developing country, like garments, are alleged to be suffering from such problem.

According to a Report, it is a regrettable feature of many export processing zones that both male and female workers are trapped in low wage and low skilled jobs .

The frequent absence of minimal standards and poor labour management relations have predictable outcomes, such as high labour turnover, absenteeism, stress and fatigue, low rates of productivity, excessive wastage of materials and labour unrest which are still too common.

The Labours working are also forced to work for maximum number of hours in a day and are also paid only low wages.

The Work Environment is also poor and unsafe and there are also no proper facilities available in case of any unfortunate happenings. And There are also reports of these labourer’s being tortured both physically and mentally if they fail to act according to the orders given to them by the superior authorities.