issues in international business

1. Issues In International Business
PRESENTED BY:-
1.SOMU JENA
2.SUVASMITA BISWAL
3.RAJNI KANT SINGH
4.DOMAN HEMBRAM
5.BISWA BHUSAN MALL

2. ISSUES IN INTERNATIONAL BUSINESS
 International business operations are subject to
numerous legal regulations, as each country has a
different set of regulations for business .
 Those regulations can range from copyright
issues to the distribution of securities and how
contracts are drawn.
 Additionally, the business's home country may
have regulations that differ from those of the
target country, which may complicate the legal
strategy a business takes.

3. LEGAL ISSUES OF INTERNATIONAL BUSINESS
1.Jurisdiction
2.Intellectual Property
3.Taxes and Securities
4.Internet-Specific Issues

4. 1.Jurisdiction
 Jurisdiction is a primary issue for any
international business, including e-business.
 This refers to the ability of a legal body to make
decisions and force an individual or business to
abide by them.
 Legal systems vary by country, although there
can be similarities. For example, if a business is
sued in one country and that country's judicial
body makes a judgment, the business's home
country may or may not recognize the judgment,
depending on how its own laws are structured.

5. 2.Intellectual Property
 Intellectual property may be established in one
legal jurisdiction, but can be more uncertain in
another legal jurisdiction.
The areas of intellectual property most often
considered are copyrights and trademarks.
 If a business hires a web developer, certain steps
may need to be taken to ensure that copyright
has been appropriately transferred to the
business from the developer. Likewise,
trademarks must be registered in each country in
which a business operates.

6. 3.Taxes and Securities
 Issuing shares in a business may be illegal without
the prior approval of the target country's
exchange commission or similar legal body.
 This means that selling securities may require
the consent of a large number of different
authorities.
Taxation can represent an equally complex
situation, both in terms of taxes levied on the
business, but also sales taxes that various
countries may or may not impose.

7. 4.Internet-Specific Issues
 International business is subject to sovereign
regulation of the Internet.
 For example, an e-business may be able to provide a
link to another site, but how deeply they can link into
another business's site can depend on that business as
well as the copyright and trademark laws of its country.
 Another legal issue that may be faced is that of cyber-squatting,
which happens when a business or
individual buys a domain name reflecting the
trademark of another party and then attempting to sell
it to them. This practice is illegal.

8. Ethical Issues In International Business
The Common Ethical Issues are:
 1.Employment practices
 2.Corruption
 3.Human Rights
 4.Pollution

9. Ethical issues in international Business:
 The ethical-related issues have been approached
since ancient times and have represented the
foundation of different religions and life styles.
 The ethics can be found in all aspects of human
activity as the individuals have been preoccupied
with the quality of their behavior towards the people
around.
 Even if they do not purposefully intend to improve
their relations with the others, people always
evaluate their behavior from the point of view of
their correctness.

10. Employment
Wages and the working environment in overseas
locations are often inferior to those in the United
States, even when you fulfill all local legal
requirements.
 If you hire workers there, you face the issue of what
pay and working conditions are acceptable. Applying
U.S. standards is usually not realistic and often
simply disrupts the established market.
 An effective approach is to develop company
standards which protect workers while fitting into
the local economy. Your standards have to guarantee
a living wage, protect the safety of your workers and
establish a reasonable number of hours for the work
week.

11. Corruption
 Companies making payments to secure business that
they would not otherwise obtain are guilty of illegal
actions under the U.S.
 Foreign Corrupt Practices Act. The payments, even if
they seem to be customary, are usually illegal under
local laws as well.
 When your company makes such payments, it is
encouraging a local system of corruption through
unethical behavior. Smaller gifts, of a size that would
not normally influence a major decision, are
considered ethical in some societies and may be legal
under local and U.S. laws.
 If you find that large sums are routinely required to do
any business in a country, you may want to reevaluate
your decision to enter that market.

12. Human Rights
 The country into which you are expanding may not
respect basic human rights. The ethical issue facing
your company is whether your presence supports the
current abusive regime or whether your presence can
serve as a catalyst for human rights improvements.
 If you find that you are supporting a regime that
oppresses its citizens, engages in discrimination and
does not recognize basic freedoms, the ethical action is
to withdraw from the market.
 If you find that the regime allows you to observe
human rights within your organization and that your
presence moderates human rights abuses, you may
actively work to improve local conditions.

13. Pollution
 Not all foreign countries have environmental legislation
that makes it illegal to pollute. Companies may discharge
harmful materials into the environment and avoid costly
anti-pollution measures.
 An ethical approach to your expansion into such markets is
to limit your environmental footprint beyond what is
required by local laws.
 An ethically operating company ensures its operations
don't have harmful effects on the surrounding population.
Since your company has the knowledge and expertise to
operate within U,S. environmental regulations, it is ethical
to apply similar standards in your new locations.

14. Social Issues In International Business
 The Common Social Issues while carrying out
International Trade are:
 The Country with which we do international trade
might be ruled by a corrupt leader or a party.
Military rulers pose a serious threat for international
business.
 If the Home country and the trading country are at
war. If two countries are at war then there wont be
any international trade between them.

15. The Attitude of the host country towards foreign
investment is negative. Host countries may
impose special rules for MNC’s
 If The country where we do our International
trade lacks social infrastructure .Inadequate
facilities may require a company carrying on
international business to build housing,
establishing schools and providing transportation
facilities for the employees.
Government Interference is yet another Issue. If
the government of a host country insists on
becoming a partial owner Of the foreign business.

16. Environmental Issues in International business
Environmental issues are harmful effect of human
activity on the bio-physical environment.
Environmental issues have been engaging
increasing discussion in the international business
horizon.
 As in the case of some other social issues in the
fore, the environmental issues raised are mostly
which disadvantage the developing countries,
ignoring or relegating to the background several
serious which hold the developed nations or
firms from such nations guilty.

17. Global Warming
 That global warming will cause calamitous trouble created around
the world. The major contributor to global warming is caused by a
greenhouse effect due to massive carbon dioxide emission.
 According to Shelley (2002), EPA has stated that the major
contributor into the rising of greenhouse gases level is due to
industrial and transportation activities involving the burning of fossil
fuels as well as the deforestation.
 Therefore, government intervention seems to be tremendously
essential to combat with global warming issues.
 However, this essay will focus more on how the government policies
regarding on global warming specifically on fossil fuels combustion
(oil, coal and gas) issue affect the international business including
the arguments. The positive and negative sides it could also be the
opportunities and challenges.

18. Relocation of polluting industries from
developed to developing countries
 Developing countries are affected by the relocation of polluting
industries from the developed it the developing ones. Similarly,
several products which are banned in the developed nations are
marketed in the under developed world.
 The dumping of nuclear and hazardous wastes in developing
countries and the shifting of polluting industries to the
developing countries impose heavy social costs on them. The
exploitation of the natural resources of the developing countries
to satisfy the global demand also often causes ecological
problems.
 When the multinationals employ in the developing nations
polluting technologies which are not allowed in the developed
countries or do not care for the ecology as much as they do in
the developed nations, it is essentially a question of ethics.

19. Ban on importing some goods
Some countries prohibit the import of goods
which cause ecological damage.
For example, the US has banned the import of
shrimp harvested without turtle excluder
devise because of its concern for the
endangered sea turtles. Countries like India
are affected by it.

20. Role of trade
The third concern about environmental issues is
the role of trade relating to more social
preferences.
Some practices may simply be unacceptable for
certain people or societies, so they oppose trade
in products which encourage such practice.
These can include killing dolphins in the process
of catching tuna, using leg hold traps for catching
animals for their furs, or the use of polluting
production methods which have only local
effects.

21. Labour Issues In International Business
• The Basic Labour Issues are:
1.Child Labor
2.Forced Labor
3.Health and Safety
4.Working Hours
5.Low Wages

22. Labour Issues In International Business
 One of the important social issues in the developed countries in respect of
business with the developing countries pertains to ill treatment of labour and
children.
 Child labour used in the manufacture of exports from the developing countries is
widely criticized by people in the developed countries.
 For example, it is alleged that child labour is used by the carpet industry in India
and some other countries and social activist in the developed nations demand
ban on the import of goods embodying child labour. Consumers are called upon
to boycott such goods.
 Similar issue is the sweat labour. The argument here is that goods are
manufactured by labour working in inhuman/unhealthy working conditions not
getting fair wages should be banned or boycotted. Creating important developing
country, like garments, are alleged to be suffering from such problem.

23.  According to a Report, it is a regrettable feature of many
export processing zones that both male and female workers
are trapped in low wage and low skilled jobs .
 The frequent absence of minimal standards and poor
labour management relations have predictable outcomes,
such as high labour turnover, absenteeism, stress and
fatigue, low rates of productivity, excessive wastage of
materials and labour unrest which are still too common.
 The Labours working are also forced to work for maximum
number of hours in a day and are also paid only low wages.
 The Work Environment is also poor and unsafe and there
are also no proper facilities available in case of any
unfortunate happenings. And There are also reports of
these labourer’s being tortured both physically and
mentally if they fail to act according to the orders given to
them by the superior authorities.