Recent events in the news have clearly indicated that the global economy is suffering, and this is having an obvious effect on your own company. Between wars, natural disasters, and political upheaval, your bottom line is rapidly eroding. However, you have identified a potential market for your products; unfortunately, it is located in a country that does not have a good track record for adhering to the legal and ethical guidelines concerning foreign-owned companies. Assess the risk involved, and decide whether you should recommend doing business in this type of legal setting.
?Find at least 2 examples of how international laws could protect your interests as a foreign-based business and what legal ramifications you could pursue if your rights were violated. Explain and document your findings.
?What kind of impact can countries with poor track records of adhering to the laws of international business practices have on the global economy? Explain.
Assess the risk involved, and decide whether you should recommend doing business in this type of legal setting:
Most of the companies that are located within a country that does not have a good track record for adhering to the legal and ethical guidelines risk failing in their operations. This is because countries that do not adhere to the legal and ethical guidelines tend to be involved with other activities that are not legal and also not ethical. In this sense, they are mostly corrupt in their business activities and this could risk companies being closed down if they are found to be corrupt. I would not recommend doing business in this type of legal setting since it does not provide the platform for a trade that is guided by ethics and law (Sen, 2009).
How International Laws Could Protect My Interests in Foreign Based Business:
International laws could protect my interests as a foreign based business in a number of ways. By ensuring that there is a written contract between the foreign based businesses and the host country, international law would ensure that the rights and interests of the business are protected by the contract. Such a contract could be used in case there are any disagreements between the two parties in the ...