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South American electronics plant

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Lawsuits have been filed regarding the South American electronics plant takeover. Members of the local village brought the legal actions against the corporation in the United States. They claim the company is responsible under the tenets of international law. The corporation has filed cross-claims against the South American government based on negligence.

Discuss the rights of individuals or businesses who enter a foreign country in the plant situation.
Explain the traditional law of nations rule (the states of the world imposed on each other the requirement to respect each other's citizens). State responsibility for injuries to aliens is a recognized rule of international law. You should also discuss the current debate about how responsibility is defined and is enforced.
Go to http://www.ria.ie/cgi-bin/ria/papers/100538.pdf, and read the document States' Due Diligence Obligations with regard to International Non-State Terrorist Organisations Post-11 September 2001: the Heavy Burden that States must bear.

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The response address the queries posted in 1462 words with references.

//The given discussion is based on the establishment of the business in the new foreign country. Regarding this, in the first section of the discussion paper the rights of the business organizations related to the foreign business operations is described. The explanation is done in concern of the United States.//

Right of business in foreign country:

The results of a business after entering into a foreign country are the rewards or financial commitments. The protection of the investors or businesses is the key factor to improve the investment from a foreign firm. Various laws and regulations provide the facility to perform the business activities in a foreign country in less risky conditions (Keston, 2007). International business is carried on in multiplicity of environment in so far as the environment differs from one country to the other. Regulation not simply means the restrictions on foreign trade and investment but also an encouragement to them. The two divergent processes- restriction vis-à-vis encouragement, determine essentially the quantum and pattern of international trade and investment in two different directions.

Availability of scare foreign exchange, improvement in the balance of payments, accelerated rate of economic development through warranted rate of investment and through the creation of economic linkages, etc. In fact, these are the factors responsible for a favorable investment inflow policy adopted by the host country government. But at the same time, inflow of the investment is subjected to the checks because it often produces negative impact on the host economy, such as deterioration in balance of payment on account of larger imports & payment of dividend and other fees and also the continued dependence on the imported technology (Pagell & Halperin, 2000).

It may be mentioned that since the subsidiary often sources its input either from the parent unit or from a third country unit of the firm, FDI inflow fails to help in building the cluster. In such case of sourcing, transfer pricing is very common. This means over invoicing of import of the subsidiary that in turn channels out the scare foreign exchange from the country and entails upon the balance of payments. The host government encourages local sourcing. If foreign sourcing is indispensable, the government scrutinizes the invoicing procedure.

Again, it is true that high tariff wall motivates tariff-jumping FDA. But in such cases, the foreign ...

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The response address the queries posted in 1462 words with references.

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Legal Operations in International Business

Deliverable Length: 1250-1500 words

Details: Lawsuits have been filed regarding the South American electronics plant takeover. Members of the local village brought the legal actions against the corporation in the United States. They claim the company is responsible under the tenets of international law. The corporation has filed cross-claims against the South American government based on negligence.

Discuss the rights of individuals or businesses who enter a foreign country in the plant situation.
Explain the traditional law of nations rule (the states of the world imposed on each other the requirement to respect each other's citizens). State responsibility for injuries to aliens is a recognized rule of international law. You should also discuss the current debate about how responsibility is defined and is enforced.
Go to http://www.ria.ie/cgi-bin/ria/papers/100538.pdf, and read the document States' Due Diligence Obligations with regard to International Non-State Terrorist Organisations Post-11 September 2001: the Heavy Burden that States must bear.

Scenario:

ABC Corporation has grown into a successful multinational corporation with gross revenues of $35 billion in the last fiscal year. ABC has operating facilities in the European Union (EU), the United States, People's Republic of China (People's Republic), Asia, South America, and Africa. The company has experienced explosive growth over the last 3 years and has grown from a regional firm to a multinational conglomerate with many international projects currently under way. ABC is planning to construct additional specialty chemical and electronics part production facilities in offshore locations in the near future.

The original founders of the corporation have become the board of directors and primary shareholders for this corporation and have worked diligently to create a successful mix of products for the corporation including electronics, specialty chemicals, and Internet services in the United States, Asia, People's Republic of China, and Africa. Even though ABC has grown in complexity, the corporation now has a competent and capable corporate legal in-house counsel and management team in place to manage day-to-day operations although the board has insisted on guiding every facet of the business. The board members have taken this hands-on approach to the corporation because they built it.

Over the last several months, there have been concerns from the management team and in-house counsel about the board's excessive involvement in international negotiations. In an effort to quiet these concerns, the board has engaged you, a recognized expert in the field of international operations and laws, to act as its personal consultant on all projects the board members have undertaken globally. Your job is to advise the board members through memoranda and discussion about the legal risks and consequences they face in the various projects currently ongoing for ABC Corporation.

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