...Studying Legal Environment of International Business INCOTERMS ------------------------------------------------- General Transport[edit] EXW – Ex Works (named place of delivery).[edit] The Seller makes the goods available at his/her premises. This term places the maximum obligation on the buyer and minimum obligations on the seller. The Ex Works term is often used when making an initial quotation for the sale of goods without any costs included. EXW means that a buyer incurs the risks for bringing the goods to their final destination. The seller does not load the goods on collecting vehicles and does not clear them for export. If the seller does load the goods, he does so at buyer's risk and cost. If parties wish seller to be responsible for the loading of the goods on departure and to bear the risk and all costs of such loading, this must be made clear by adding explicit wording to this effect in the contract of sale. The buyer arranges the pickup of the freight from the supplier's designated ship site, owns the in-transit freight, and is responsible for clearing the goods through Customs. The buyer is responsible for completing all the export documentation. Cost of goods sold transfers from the seller to the buyer. FCA - Free Carrier (named place of delivery)[edit] The seller to deliver goods to a named airport, terminal, or other place where the carrier operates. Costs for transportation and risk of loss transfer to the buyer after delivery to the carrier. When...
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...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were made-...
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...ADEGBENRO ELEWADE MIB 34 LEGAL ENVIRONMENT OF INTERNATIONAL BUSINESS. QUESTION 1 The following rules and principles will be used to analyse if this new trade policy is permissible. WORLD TRADE ORGANISATION RULES AND PRINCIPLES - * Trade discrimination is forbidden- There is a trade discrimination in this policy by subjecting Mediterraneo and Equatoriana to a tariff and excluding Oceania from the tariff policy and also this trade discrimination occurred because Oceania and Pacifica are members of a customs union modeled on and using the same rules at the European Union * Each state has to afford most-favored-nation status to all other WTO member states equally- Pacifica only offered most-favored-nation-status to only Oceania, instead of offering this status also to the other WTO members. National Treatment Rule * A WTO member state must treat imports equally with its own domestic products once the imports are inside its borders- Pacifica subjected foreign cars to foreign sales tax at the point of sales but excluded cars manufactured in Pacifica from this policy, this should not be done because the national treatment principle states that foreign goods should be treated as domestic goods, so Pacifica should not subject this foreign goods to foreign sales tax since also the domestic goods are not subjected to this tax. * Products must be treated equally vis-à-vis their content; they may not be discriminated against because of the way in which they were made-...
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...Valid Contract Unit 3 IP Penelope Manzo BUSN310-11-2B-06: International Legal and Ethical Issues in Business American Intercontinental University James Lange Valid Contract A valid contract is an agreement that is backed-up by the courts. The contract is valid if it meets all four elements, which includes: an agreement, valuable consideration, competent parties, and legal purpose. The agreement must be a compromise from both parties, and the intention of all terms of the contract must be agreed upon from both parties. Before the contract can begin, both parties must make clear each intention, detailed, and both parties must have a clear understanding. The agreement must have an offer and an acceptance, which must include both parties. Next, a valuable consideration, in which each party are required to give up something of value or refrain from exercising a legal right in an agreement, such as the initial agreement. The third element, competent parties means all parties must possess the legal capacity to enter into the contract. This means the state jurisdiction must be met, all party members must be of legal age within the state, and must be of mental competence. Lastly, legal purpose, the contract must have a legal purpose and not contrary to the public policy. These four elements must be agreed upon and meet before a contract becomes valid. According to US Legal Definitions, Objective theory of contract is a “doctrine which states that a contract is not an...
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...International Legal and Ethical Issues In Business Several issues keep emerging in the current business world. Some of these issues are legal while others are ethical. The management of modern organizations must ensure that their human resources have desirable ethical behaviour. This will ensure that their organizations maintain their clientele and in turn increase their profit margins. How would you effectively present the issue of potentially defective products to the CEO, other directors, and managers? A potential defective product can cause injuries if taken lightly regardless of whether the company’s ethical guidelines have been communicated. Such situations can cause significant legal repercussions and destroy the reputation of a company, which can cost the company if proper steps are not followed in correcting it. Normally, the senior management in current organizations fails to know what is happening at the ground level and it is the duty of the employee in charge to give out a report (Edwards, 2008). During such a presentation to the top management, it is important for one to give out sampled evidence to support the allegation in an honest manner. This should be made in comparison to the actual products to bring out the difference. Physical evidence brings out product defects and it will challenge the top management to act fast to avoid legal battles with the consumers (Brooks, 2012). How would you specifically notify customers of such an occurrence? It is an...
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...Unit 1 Individual Project International Legal and Ethical Issues in Business American InterContinental University It is know that is anyone in the business world has legal obligations to keep their employees and customers safe. The first thing that I would do is call a meeting with the CEOs, directors, and managers, present the potential defective product to the boards as an issue and explain to them exactly what the defect in the product is. The CEOs, directors, and managers will know that everything possible is being done to protect the consumers from any hurt, harm or danger of this potential defective product. I would advise everyone to follow all company policies and procedures of what to be done in the event of a failed product. If there is a possibility that there is a defect in a product of a company, after making the CEO and other personnel of the company aware of the issue, the next step is to make the customers aware of the issue. A company will not be in business for long if they decide to ignore its customers. The most effective way to notify customers of a defect in a product is by recalling the product. This is to contact them by mail or email with a letter of a possible defect in the product, set up special phone lines...
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...International Legal and Ethical Issues in Business unit 1 individual project Introduction In the scenario of the company’s upcoming meeting with the chief executives officers of the company, (CEO) this would be a great opportunity to present the potential defective products, that’s being sold to the customers and potential customers. Not only to the directors but to the executives as well As this is a very serious issue that cannot be over looked, that could cause a plague throughout the organization... this defective product could pose a risk For both the customers and the company. And cause millions of dollars in lawsuits, the businesses reputation, unsatisfied customers, and ultimately putting the company at risk of going out of business. Since the new executive may not be aware of the potentially defective product; nor of the company’s ethical guidelines; due to the lack of effective communication. However, as leaders of the organization all are accountable and responsible for the actions by the organization... as leaders are the pillars of the organization; i.e. directors, managers, internal auditors, and external auditors. Leaders must be an example of honesty, and accountability. “To be effective, all four must operate separately or it will cause a substantial amount of damage. (As cited in clarity begins at Home, 2002). Body Therefore the purpose of this assignment to discuss and prove the internal action of a defective product and how to ethically, notify...
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...Chapter 02, Geopolitical and legal factors in international business Geopolitics is the study of the influence of political and economic geography on the politics, national power, and foreign policy of the states. It’s the combination of geographic and political factors influencing a country or a region. It is also the national policy based on the inter-relation of politics and geography. Geopolitics combines the study of geography with the study of politics. Geography refers to a physical landforms, size and resources while politics refers to relations between among state origin. The geopolitical environment refers to a region’s political situation while considering the countries’ geography, history, economic situation, religion, culture, and governmental structure. It may also relates either to a single to a single country situation or the one of an entire continent. The geopolitical environment of the Middle East for example is frequently discussed. Launched in the beginning of the XX century by Swedish politic scientist, Rudolph Kjellen, it has become a popular term used by political scientist, historians, etc. The analysis of a region’s geopolitical environment attempts to get a sense of the values aspect of a region’s politics, culture, and industry. The geopolitical environment may vary overtime, even tough the geography may remains static, the changing world environment can affect an area’s political power. As the world in presently depending on oil...
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...Marian Malone International Legal and Ethical Issues in Business October 25, 2015 Abstract What kind of statements are companies allowed to make in their advertising campaigns to get noticed by the general public? How much of this advertising is taken seriously by the general public? Will a company be held responsible to follow through for their statements made in an ad campaign? We will examine these questions in this paper. Circumstance In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a TV commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each. The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form along with a demand for the Harrier jet. The company wrote back, stating that the Harrier jet in the commercial was simply used to created humorous and entertaining advertisement...
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...entered into that foreign market. The primary objective is typically profits, a secondary could be expansion, an initiative to become a globally known brand and gain international market share. Once the fundamental question of “why” is answered, the remaining issues, such as foreign government policies, can be addressed as well. So should a company comply or defy? Proponents of both sides of the fence are up in arms and ready to debate their stance. Proponents argue loss of market share if a company decides to leave a potentially new market, especially an international market. And proponents of defying the compliance terms are citing moral and ethical beliefs which make it wrong to comply with a communist government (http://hbswk.hbs.edu/item/5246.html). So who is the victim and who is the winner? I think that both sides are equally at loss as well as gain. If a company decides to leave due to compliance issues, chances are their competitor will step in and dominate that market. It is often difficult for a company to enter into the market as a secondary and gain market share. Foreign investments are both risky and expensive to finance, organizations determined to gain market share should certainly comply with the rules and regulations of the foreign market in which they wish to do business in. On the other hand, do we forego our moral and ethical values simply because we are on foreign soil? Are...
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...al The cultural, political and legal environment of international business Abstract A study of the elements of a domestic market and those of an international market may reveal many crucial differences, especially political, legal and cultural differences. For example, the "rules of the game” of business in the international market are diverse, changeable and often unclear. The international firm may have to content with different legal and ethical standards in different host countries. In this paper the parameters of the political, legal, and the cultural environment of international business will be considered, The paper also relates how political, legal, and cultural incidents or situations may become roadblocks to the smooth operation of business ventures in foreign countries. Misunderstandings and breakdown in communication often arise from differences in perception by executives who are not from the same cultural, legal and political background. International investors need to know what elements in a foreign culture have the greatest influence over consumption patterns in general and particularly the consumption behaviour to their specific product. By reflecting on the language, religion, demography, climate, values and beliefs, education, labour, roles of women, family, ethnic groups and other similar elements, the international business person will be able to, not only participate in the international economy with a better perception of the situation, but also be able...
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...Syllabus of International Sale of goods (2012-2) NAME OF COURSE International Sale of Goods NATURE OF COURSE Compulsory PREREQUISITES AND BACKGROUND KNOWLEDGE Cultures of international business, business writing in English, import and export laws, international sale of goods, principles of civil law and necessary basics of legal knowledge relating to contract , maritime transportation, insurance, corporate law, partnership, and agency. STUDENTS Law school students LECTURING HOURS 40 hours TUTORING HOURS By appointment during Monday mornings 9AM-12AM and Wednesday mornings 9AM-12AM in the professor’s office. LECTURER’S INFO – Dr. Phil Cameron Office venue: A201 Office telephone：+86 (21) 6770 3307 E-mail：philcameron@shift.edu.cn COURSE DESIGN This course focuses on integrating the laws, rules and legal principles for the international trade of goods, including practical lawyering skills, business procedures, identifying risks, managing problems, and creating resolutions for common legal issues. OBJECTIVES A. To understand the basic the laws, rules and legal principles for the international trade of goods, as well as, develop some practical lawyering skills B. To cultivate academic quality and business skills, such as: 1) the ability to examine and resolve legal issues resulting in practical business solutions, along with the application of legal theory 2) an understanding of the rational, moral and jurisprudence basis of relevant rules as applied to current legal matters, and also...
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...Objectives 4.1 Differentiate between types of employment relationships and associated the legal considerations. 4.2 Differentiate between types of discriminatory issues and the associated legal considerations. 4.3 Determine methods for managing legal risk arising from regulatory compliance issues. Readings Read Ch. 31 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read Ch. 32 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read Ch. 33 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read Ch. 43 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read Ch. 44 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read Ch. 45 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read Ch. 46 of Business Law: Legal Environment, Online Commerce, Business Ethics, and International. Readings Read this week’s Electronic Reserve Readings. Participation Participate in class discussion. 2 Discussion Questions Respond to weekly discussion questions. DQ 1 due Day 3 and DQ 2 Due Day 5 2 Nongraded Activities and Preparation Podcast Listen to the Week Four podcast. Learning Team Reflection Check out the local and national news sources and find a current event that reflects what we...
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...International Legal and Ethical Issues Contemporary Business Law-LAW/421 Dina Centifanti Gledhill May 28, 2012 International trade is important and beneficial to business. However international trade must be guided with a safeguard of interests, specific business contract, defined law, forum of dispute settlement, and understanding of contract clauses. “A working knowledge of international law helps business owners and managers with global interests reduce risk and increase profits” (Melvin, 2011, P. 631). This enlightenment will address the international legal and ethical issues involved in international business transactions and compare such to domestic business operations. Resolving legal disputes Business internationally, enviably creates change in legislation, interest conflict, and rise of ethical dilemmas. When international business arises, business owners, and management must use precaution to avoid ethical, legal, and cultural issues. Business must prepare for the unexpected to ensure success. Often conducting foreign business requires the parties to set standard law, determine how to settle disputes, and define contract clause to determine the correct business decision applicable through contracts. Foreign businesses commonly use contracts for the international sale of goods as standard law. “Contracts for the international sale of goods was created by the U.N. Commission on International Trade Law to establish uniform rules for drafting certain international...
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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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