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Growth of international law, treaties & financial markets


Business, International Business - Other


Growth of international law and treaties / Growth of financial markets


Using the two business factors below discuss each of the questions as they apply to business conditions for MNC (HONDA).

Business factors:
A.Growth of international law and treaties
B.Growth of financial markets
1.Comment on the issues the MNC faced. How were these issues overcome?
2.How might these issues have changed the way the MNC conducts business in domestic and international markets?
3.Considering the current business climate, what future changes should the MNC anticipate?
4.What recommendations would you make to management to ensure a successful future?

Solution Preview


Understanding issues that affect companies in the international arena is paramount in developing the essence of how such international issues are resolved. This paper analyses the issues faced by Honda Motor Company in the growth of international law and treaties and in the growth of financial markets.

Issues faced in the growth of international law and treaties and financial markets:

Honda Company has faced a number of legal issues with regard to the growth of international laws. These issues faced by Honda in its international business are extensive environmental regulations, various government regulations in the countries they operates in, franchise law, litigations regarding product safety, and issues with U.S. and Canada's Free trade (FTA) Agreement with regard to classification of customs for auto parts and assembly made in the U.S. under non-US companies as non U.S. thus not liable for FTS benefits. In this last issue, Honda pursued legal redress in order to address it through the U.S court of international Trade and through trade dispute settlement under FTA and was finally resolved with the negotiations of the North American Free trade Agreement (NAFTA) (Dufey & Ryan, 1994).

Environmental issues faced mainly involved emissions standards that their products need adhere to. The company has been faced with litigation where they were required to pay $267 million in violation environmental laws set by international standards where Honda sold vehicles that had disabled emission control systems (EPA, 1998). In this issue the company was able to resolve it by reconfiguring their installation in the vehicles to the set environmental law standards (Honda Engines, 2010).

Product liability issues with regard to international safety of the products that Honda produces is another issues. Over the years the company has faced a number of product litigations regarding the safety of their product with the most recent one being recalls over faulty airbags (Kageyama, 2011). Honda though has been resolving such issues through settlement of the victims affected and recalling the products from the market so as to set then to international standards.

In addition, Honda has also faced Franchise law issues through out its locations of business. For instance in issuing conformity certificates for Honda product in Belgium and in adding a new dealership ...

Solution Summary

The growth of international law, treaties and financial markets are examined.