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Obligations and Issues US Companies Face Overseas

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How do governments attempt to control foreign businesses operating within their borders? When U.S. companies do business in other countries, what issues do they face? Describe the responsibilities and ethical concerns that you feel are important for U.S. companies to consider when doing business in other countries.

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This solution discusses how governments attempt to control foreign businesses operating within their borders, the issues US companies face operating overseas, and the responsibilities that are important for US companies to consider when operating overseas. Examples and APA formatted references are included.

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Governments attempt to control foreign businesses operating within their borders through legislation and tariffs. An example of legislation is in India, where only 10 of India's 35 states and territories welcome foreign retailers (Kinetz, 2012). Another example is in China where ' local competitors 'often get preferential support from the state' (Rein, 2010). Tariffs around the world effect foreign businesses interest in where to place their operations (Feinberg, Keane, 2009). In addition, the manipulation of the political/economic situation of the country and access to resources demonstrate ways governments control foreign businesses operating within their borders.

U.S. companies that do business in other countries face these issues, in addition to ...

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Sally Baldwin, Ed.D
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  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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