...Domestic business is any transaction that has to deal with the commercial activities conducted within a single nation. The economic transactions that are made by a domestic business within the borders of its nation typically have the advantage of only having to deal with the local currency, such as the dollar for the United States. It also has the advantage of dealing with the local customs, religions, government, culture, tax system and regulations. Domestic business is usually where your stronger customer base lies so it might be useful to direct most of your focus at first. It is much easier to establish good domestic business interaction when you are interacting with like people. Once it is decided your nation’s domestic business is in good standing, then you can focus more on international business being done with other countries. I believe it is very important to have a separate course on how to deal with international business because it is so much more complex than dealing with transactions taking place within one single nation. With international business, one has to learn how to manage transactions taking place in places with different currencies, customs, religions, government types, cultures, tax systems, regulations and even tastes. For example, the drink Coca-Cola tastes different in every country you go to because the taste preference of people in those countries is different. It can be difficult negotiating with two or more countries that have different government...
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...1 Country Differences in Accounting Standards Kimetha Davis BUS616 International Business Jason Sheedy Ashford University May 6, 2012 2 Abstract Accounting Standards hold a very important place in any business, whether foreign or domestic. Accounting is shaped, by the environment, in which it operates. Throughout the world accounting, systems are most likely to be different, according to company standards. Which because of different accounting systems, it would make harmonization as challenge. Because there are differences in accounting systems, adopting international standards of accounting will prove to show benefit as well as risks and this paper will cover some of each… 3 Accounting Standards Accounting Standards hold a very important place in any business, whether foreign or domestic. Accounting is shaped, by the environment, in which it operates (Hill 2011). Foreign companies have different accounting systems, such as in European countries, government regulations require forms to publish detailed information about training and employment policies, there are no such requirements in the United States accounting systems (Hill 2011). There are factors that may...
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...Addressing International Legal and Ethical Issues Simulation Summary 1. What are the issues involved in resolving legal disputes in international transactions? The issues involved in resolving legal disputes in international transactions include but are not limited to the signing of contracts designed to protect both parties, choice of clause, which forum to use when settling a dispute and if arbitration, if used, will be binding or nonbinding. Something else to think about when resolving legal disputes in international transactions would be to gauge when the government stands in the legal proceedings and to find out if the particular countries government can overrule any decisions made by the companies. Other issues would include the political situation, dominant international laws and cultural issues that would influence the achievement or disappointment of the business venture. 2. What are some practical considerations of taking legal action against a foreign business partner based in another country? Some practical considerations of taking legal action against a foreign business partner based in another country include looking out for the best interest of the company your represent as well as future business ventures with the company or country you are in business with. One would also have to take into consideration economic, legal, and ethical associations. The economy of the country that you are contracted with may have ulterior motives in the business arrangement...
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...Week 2 Simulation Paper After completing the Addressing International Legal and Ethical Issues simulation on the student website I have come to some conclusions on the questions presented in the syllabus. We will discuss the issues involved in resolving legal disputes in international transactions. What are some practical considerations of taking legal action against a foreign business partner based in another country. What factors could work against CadMex’s decision to grant sublicensing agreements. When the local customs and laws conflict with the customs and laws of an organization operating abroad, which should prevail? How will I compare the issues in this simulation to the domestic legal issues discussed in week one readings? How should companies resolve domestic and international issues differently? Discussing the issues involved in resolving legal disputes in international transactions you must consider possible changes in legislation, clashes of interest, and ethical dilemmas. When entering a transaction with another country you need to make sure that the agreement is legally binding and enforceable. You also need to consider cultural and ethical differences inherent in such business transactions. What some of the practical considerations of taking legal action against a foreign business partner based in another country are as follows you need to make sure the contract protects your company’s interest within the foreign country in which you are operating against...
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...Opening Benefits from Globalization Constrains to the developing countries The “unequal footing” A common cause of Asian crises: “incompatible opening” The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” Will the quick market liberalization solve the problems? Reforms and opening “Compatible opening” vs. “sequencing” Timetable for opening? No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent to about 40% of its GDP. It is not fully opened and is under the international pressures to open further. Nevertheless, it seems that a consensus has been building up among Chinese that China has to open further to catch up the path of globalization and become a constructive and equal partner in the world market; but at the same...
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... ¾ Benefits from Globalization ¾ Constrains to the developing countries ¾ The “unequal footing” ¾ A common cause of Asian crises: “incompatible opening” ¾ The Lessons from Asia crisis: Speed up the reform and Balance the globalization and domestic restructuring ¾ Case of China: Gradual liberalization II. China: Opening process and benefits from the globalization II. 1 Trade. II. 2 Foreign Investment II. 3 Service sectors III. Potential negative impacts of further market liberalization III. 1. Unemployment in general III. 2 Agriculture III. 3 SOEs and Manufacture industries III. 4 Service sectors III. 5 Inter-region and inter-group income disparity IV. Impacts of Asia crisis and corresponding policies V. How to achieve further “Compatible opening” ¾ Will the quick market liberalization solve the problems? ¾ Reforms and opening ¾ “Compatible opening” vs. “sequencing” ¾ Timetable for opening? ¾ No universal solution China has quickly opened its economy in the past 20 years. It is became the largest FDI recipient developing country since 1993 and the trade is already equivalent to about 40% of its GDP. It is not fully opened and is under the international pressures to open further. Nevertheless, it seems that a consensus has been building up among Chinese that China has to open further to catch up the path of globalization and become a constructive and equal partner in the world market; but at the...
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...International Legal and Ethical Issues Lori Hall LAW/421 December 18, 2012 Corey Frost International Legal and Ethical Issues When one company decides to take legal action against a foreign business partner in another company it is important to not only have an understanding of their local laws but also cultural differences, customs, and language barriers. All of these items could present possible barriers to resolving legal disputes associated with international transactions. Any company doing business abroad must be mindful of the pitfalls of international business, ensuring that the contract entered into is legally enforceable, the contract must protect the company’s interests in the foreign country against all eventualities, knowing that possible disagreements and disputes are common in the international trade arena. This paper will outline the legal, ethical, and cultural issues of doing business abroad. Issues Involved In Resolving Legal Disputes First, business contracts must clearly specify which laws will govern the business decisions that will be made, whether it is American law, local country laws, or popular international convention. One should note that international laws are broad terms establishing a series of customs that countries and businesses agree to adhere to when dealing with each other and that international laws are binding; however, largely based on reciprocal behavior rather than legal sanctions (Melvin, 2011). Some issues involved in...
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...function of business since World War II. It has gone through several phases of development in achieving its present status. It is a critical part of supply chain management. The coordination and, perhaps, integration of the logistics systems of all the organizations in a supply chain are necessary requirements for successful management of the supply chain. (Bowersox etc, 2007) Logistics can be divided into two parts: domestic logistics and international logistics. Difference between Domestic & International Logistics can be said to arise mainly on account of the three major factors : 1) Logistic costs is International Business is much more higher than the domestic business 2) The Logistic Mechanics are much more complex in the context of international logistics than the domestic logistics 3) The political, cultural and institutional factors connected with international logistics are of considerable importance whereas these are usually not of much consequence in the context of domestic logistics.(Networker, n.d) Globalization of the world economy and our logistics has advanced at an almost unbelievable speed. Growth in world trade, and corresponding cargo container movements, continues to substantially exceed overall economic growth, meaning that trade volumes are doubling every 5-7 years.(Hill etc, 2001) There are some roles of global logistics: • Globalization helped in doing business beyond the national boundaries. • Internet has made easier to do business across...
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...as increasing competitions in both domestic and international markets, industrial disputes and the struggle to maintain profits during the global economic crisis. This essay would highlight the biography of Qantas's current status and evaluate the effectiveness of the solutions used to solve the challenges. Currently, Qantas operates in Australia and the Asia Pacific region and is part of the Oneworld alliance. It is able to fly across to 200 destinations in more than 45 countries. This also includes Qantas’ own regional carrier QantasLink and low-fare carrier Jetstar. Moreover, its vision is to be the leader in providing premium and low cost service through Qantas and Jetstar brands respectively (Qantas, 2014). In addition, Qantas has a flexible fleet plan, owning 128 aircrafts that includes 20 Airbus 330, 12 Airbus 380, 66 Boeing 737, 15 Boeing 747 and 15 Boeing 767. It has 33.36K employees and 93% are based in Australia (Qantas, 2014). It also owns a 29% stake in Jetset Travelworld, an Australian travel agency (Benns, 2009). Furthermore, cargo, catering and tourism operations also provide revenue that will sum up Qantas’ total revenue to more than A$15.9 billion (Macroaxis, 2014). The carrier's great strength has always been its powerful position in the domestic Australian market. With 65% of total capacity and nearly acquiring 90% of the corporate business in a country that has experienced little economic downturn, its business is considered relatively stable (Grant...
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...JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS EFFECT OF TRADE DEFICIT ON THE ECONOMY OF PAKISTAN Mohsin Abbas Superior University, Lahore, Pakistan Hassan Raza (Corresponding author) University of Lahore, Lahore, Pakistan Abstract This study has conducted to find the effects of trade deficit on the economy of Pakistan in which trade deficit is the independent and gross domestic product, foreign direct investment exchange rate are the dependent variables. Depending on the availability of data we have selected the longest possible sample period to avoid the small sample bias. A sample period of 24 years has been selected for this study for the period of 1988-2011 with annual frequency. We use histogram, scatter plot matrix and the correlations ordinary least square method of regression has been used for the analysis.Histogramof exchange rate show rupees value against U.S dollar are continuously decrease. FDI is also not good, Gross domestic product (GDP) of the Pakistan is also very low trade,In histogram also represent the trade volume (TV) in which imports of Pakistan is very high while export is low. Scatter plot show the positive relationship dependent and independent variables except trade volume. So its result shows if the government working on these variables then trade deficit should automatically decrease like 2003 and 2004 in which our export are more as compare to import .correlation coefficient of trade deficit with gross domestic product, foreign direct investment...
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...“Why?” you need to see things through the eyes of people from overseas. First how do our sports fit into their lives? , remember some of our sports differ in names. Soccer in the US is generally called football is most of Europe and Asia where as in America Football is a totally different game. This is the problem the NFL has overseas people have traditions set when it comes to soccer and rivalries already exist and these are two cultural factors a U.S. franchise must overcome, not to mention must people overseas don’t like the fact that we decided to call our sport football as the foot isn’t nearly the biggest aspect of the game. Some of the biggest obstacles are cultural difference. Just because it’s popular here in America doesn’t mean it will be a hit in other countries. There are many cultures abroad, and it’s nearly impossible to predict what all those cultures will enjoy. Market research comes into play heavily when deciding to take our sports overseas. Years ago US teams were mainly comprised of US athletes. But now as the U.S. sport franchises try and go global they are scouting and recruiting foreign athletes, which makes not only that team but also it might make that sport popular with that country of which these foreign players come from. Just like with any business wanting to go global they have to be willing to adapt to that countries customs and rules, for sports it might mean how they play the sport or the rules of the sport and the overall sportsmanship. So...
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...form of business or enterprise, investing internationally is a risk that can be turned into opportunity once well managed. There is a veritable sea of benefits in international portfolio investment. These include participation in the growth of other countries, hedging against exchange rate exposure to risk, diversification benefits and advantages (abnormal returns) of market segmentation on a global scale. However, we cannot be so overwhelmed by the payoff of international portfolio investment as to overlook the bitter side of it. In an international environment, financial investments are not only subject to currency risk and political risk, but also to many institutional constraints and barriers. What are crucial in international portfolio investment are optimal portfolio allocation and the associated market and currency risks. Diversification into multiple securities can practically eliminate potential severe losses from any individual security. However, domestic diversification cannot remove systematic market risk due to high correlations among most domestic securities. Since market risk differs from country to country, international diversification can reduce substantially the overall risk exposure of investment portfolios. Introduction and Overview Increased global competition and opportunity have attracted many national economies and individual domestic businesses to the international markets. In recent years international investing...
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...Addressing International Legal and Ethical Issues LAW/421 December 18, 2013 Addressing International Legal and Ethical Issues International legal and ethical issues are extremely important to know how to deal with when you are going to join into or do business in any other country other than the U.S. In this stimulation of CadMex Pharma and Gentura, they are facing several international contracts, transactions, ethical issues and sublicensing agreements. CadMes Pharma is a pharmaceutical company in the U.S. who offer quick manufacturing techniques and has dealt with global issues often. Gentra is a biotech company in the country of Canodre which have the licensing rights to a hypothetical anti diabetic drug. CadMex Pharma’s goal is to grow financially by being able to distribute and supply this medicine for Gentra in the U.S. All countries have their own set of laws and ethics that are required to be followed, unless you have a contract in place with the company or country that you are involved in business. * What are the issues involved in resolving legal disputes in international transactions? Making a choice on which way to handle these transactions are vital, when dealing with international disputes. One choice is the Contracts for International Sale of Goods. This is not very effective because Canodre changed status and became part of the WTO. When one of the parties is not a signatory of this program, then the other party is more likely to use their...
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...hopes of reaching the international marketing community. In today business world the scope of global marketing is extending far and wide all over the world. The good and servies developed in one place can be extended to all over the world through global marketing, for eg. Coca-cola which is also the world largest soft drink company in the world has use the benefit of global marketing . In the same way mac donald which is the world largest chain of fast food resturant enjoy the benefit of global marketing. Global markeing is especially important to those companies that provide good and servies that have a universal demand such as automobiles, soft dring and fastfood. Different strategies are implemented based on the region to make the best use of global marketing for example the menu at mac donald varies based on the location of the resturant. The company focuses on marketing popular items within the country. In today world whole range of service industries are involved in global marketing for eg, banks, airlines, hotel chains, consulting companies, major advertising agencies and many more market their service worldwide. So the scope of global marketing is unlimited. 2. How and why does global marketing differ from domestic marketing? * A domestic market is a financial market where its trades are aimed toward a single market. A domestic market is also referred to as domestic trading where marketing is aimed at a single market, in domestic market the firm faces...
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...International Trade and Finance The United States imports many goods and services, as well as exports goods and services in the global economy. International trade affects the United States’ Gross Domestic Product (GDP) and domestic markets. The government can affect international trade by imposing tariffs and quotas on imports. Foreign exchange rates affect how much is brought and sold abroad. International trade is beneficial to the United States, but can sometimes be seen as unfair competition to the American workforce and businesses. Trade Surpluses and Deficits A country has a trade surplus when exports exceed imports. This situation will initially create wealth for the country, but in the long-run the country’s currency appreciates causing the cost of its goods to other countries (exports) to become more expensive; which evens out the trade imbalance. After World War II the United States was in this situation, becoming an international lender to foreign countries (Colander, p. 449). This created wealth for the U.S. because of the flow of interest payments, instead of having to pay income on its own debt. A trade deficit is when a country imports more than it exports. The United States is currently experiencing this type of trade imbalance. The U.S. is consuming more than it is producing, and they are financing this consumption by selling off assets such as stocks, bonds, real estate, and corporations (Colander, p. 448, 449). Effects of Excess Imports When the...
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