Over the past several weeks, you have been learning about the various issues surrounding the challenges and numerous situations that exist legally that differ from those of the United States. You have been placed in charge of the Business Development and Expansion committee for your company. You are charged with the task of researching and identifying a country to expand your company’s operations. Take the feedback from the Phase 4 DB into consideration, and make any additions or deletions as you deem necessary.
Your international business expansion plan should include the concepts and ideas that were covered over the past several weeks. You are to select a country that does not recognize all of the established legal guidelines reviewed previously, but the potential profit that could be realized warrants the risk. The following points need to be addressed in your international business expansion plan:
- The issue of common and civil law systems internationally
- Intellectual property, copyright infringements, and legal ramifications
- Violation of human rights of employees and child labor law violations
- Public perception of companies doing business with companies that engage in that kind of activity
- What has been the impact of the European Union of the business environment?
- Anything else that you deem important to support your international business expansion plan
Expert Answer and Explanation
Organizations and Globalization
Common and International Civil Laws
Globalization is one of the common aspects that companies aspire to attain after growing or when planning for international business. The identified and selected country that is essential for business expansion in China. China as a country has various laws and regulations but does not fully recognize all of the established legal guidelines (Sinagra, & Valvo, 2019). These create discrepancies in terms of employment rights and regulations. The availability of cheap labor and a high employee force has resulted in reduced adherence to employment rules and regulations. However, the country also has among the largest population in the world and better infrastructure to facilitate the production of goods and services (Brander, Cui, & Vertinsky, 2017). The availability of a ready market, use of technology to market and make sales is also a key benefit from the country which has the potential to improve profit realization.
Legal Law Violation
China as a country pays little to no consideration to violations of entities such as copyrights, intellectual property, and other forms of infringement. The country is arguably the number one producer of counterfeit products in the world. For instance, the high level of counterfeit products in China led to Windows operating system to provide usable systems without the need of keys as they could not be able to prevent the counterfeit or creation of image versions of the product (Gruffydd-Jones, 2019). However, there are laws on the issue and are being enforced on specific products.
Violation of Human Rights and Public Perception
China has a huge population with cheap labor for the market. While there is no violation of human rights, there are other cases regarding poor payment, unconducive working environments, minimal to know employee motivation, and challenges with employer provided insurance (Lewis, 2016). The availability of cheap labor will be beneficial to the expansion of the company as the additional proceeds can be used to provide insurance to the employees and attract qualified candidates while at the same time preventing turnover. Through international business expansion, the company can ensure that future employees are accorded better working environments, competitive compensation, and are insured against work-related injuries. These elements can improve employee motivation and increase the attainment of the goals and mission of the company.
The implementation of improved working environments and better compensation can improve the perception of the public concerning the nature of the company. Being a foreign land, proper engagement with the locals, and offering better conditions can improve the correlations, sales, and marketing of the products (Chong, 2020). In a country where there are numerous counterfeit goods, focusing on quality products and ensuring they meet the needs standards is a positive development for both the company and towards the perception of the public.
Impact of the European Union on Business Environment
The EU has been at the forefront in ensuring that countries trade with each other in an orderly manner without discrimination and infringement on items of goods. The creation of a standard form of business and understanding between the member countries is a key focus on the EU in ensuring better collaboration and shared resources (Tomaš, & Radovic-Markovic, 2018). The EU also oversees the issues of conflict resolution to ensure that there is limited to no issues between the member states and the business operations are conducted expectedly. A company that seeks to attain globalization can become part of the EU and the host will accommodate the company in line with the regulations articulated by the treaty.
Brander, J. A., Cui, V., & Vertinsky, I. (2017). China and intellectual property rights: A challenge to the rule of law. Journal of International Business Studies, 48(7), 908-921.
Chong, A. (2020, December). Bridging the common law-civil law divide? The 1985 Trusts Convention. In The Elgar Companion to the Hague Conference on Private International Law. Edward Elgar Publishing.
Gruffydd-Jones, J. J. (2019). Citizens and condemnation: Strategic uses of international human rights pressure in authoritarian states. Comparative Political Studies, 52(4), 579-612.
Lewis, M. K. (2016). Human rights and the US-China relationship. Geo. Wash. Int’l L. Rev., 49, 471.
Sinagra, A., & Valvo, A. L. (2019). Internal Law and International Law: From Common Law To Civil Law. author proofs, 17.
Tomaš, R., & Radovic-Markovic, M. (2018). Development of Small Countries in the Business Environment of the European Union. Transylvanian Review of Administrative Sciences, 14(53), 84-106.
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