International-Business-Dr-R-Chandran-E-book
International-Business-Dr-R-Chandran-E-book International-Business-Dr-R-Chandran-E-book
46 International Business- Dr. R. Chandran successful since they manufactured cell phones. Currently, the business opportunities exist in every country in the world. The people around the world are adaptable to the technology too. While technology innovation is adaptable to the masses, the companies involved in such business prosper. Today Hewlett Packard, Fujitsn, Apple, Samsung and Lenova compete against each other by educating the workers on using their laptops and launch their new versions everywhere. LEGAL ENVIRONMENT : This relates to the laws and regulations governing the conduct of business activities in the country. Before entering any country, firms avail of the services of local legal firms to understand business interpretations pertaining to labor legislations, taxes, environment, pollution, investment, distribution, contracts, logistics etc. The international legal environment has three aspects: a) Home country laws b) Host country laws c) International laws. a) Home Country Laws These deal with two important issues: i) Conduct of the firm in the domestic territory. ii) Trade with the other countries For international operators, the home country laws are not stringent. They are more of facilitating or regulating in nature, but not controlling in normal practice. b) Host country laws These include investment regulations, tariffs and duties, anti-dumping regulations and protection of local industries from unfair competition from industrialized countries. Tariffs and duties are used to discourage imports of non-essential products in order to conserve foreign exchange and maintain a favorable balance of trade and to generate revenue. Seven advanced countries impose laws against developing countries. Super 301 against Indian nylon skirts imposed by USA as inflammable fabric and ban on Indian sea food by Europe are the examples. Only for Private Circulation
47 International Business- Dr. R. Chandran c) International Laws These comprise treaties, conventions and agreement between nations, and have basically the same standing as laws. They are particularly in areas relating to patents and trademark protection and privacy laws. One has to understand the broad provisions of UN resolutions, and multilateral trade agreements such as the WTO. Disputes are solved by different means. Food and drug administration, health regulation, registration formalities are judiciously implemented in international business operations. Investment restrictions in some sector, promotion in others and the role of regulatory authorities are part of legal environment. For example, Nigerian government nationalized the assets of British petroleum, when it was revealed that the company as selling Nigerian crude oil to South Africa, despite an embargo. COMPETITIVE ENVIRONMENT: Competition is a threat imposed by an environment, which may effect or hamper or challenge the operation of an international business firm. Competition either could be from the firm’s home country or host country or third country. Some times product related competition may crop up through substitutes or low cost production process or technology or cost reduction through economies of scale. The current international business operation has to encounter competition as various levels such as entry, operation, production, administration, human resource, technical resource, and financial resource. Distribution and logistics. Motorola had to face the face the competition from Nokia, soon Nokia concentrated in fast growing markets of India and China resulting the follower became leader in the world. Cuba based White Spirit Company; Havana club entered very late in the field and surpassed the erstwhile leader like Smirnoff. Tusker and Phoenix – the major beer brands in COMESA countries (Common Market for East and South Africa) have been overtaken by King Fisher after UB group took over National Breweries of South Africa. For international companies, facing competition is a way of life. According to them, competition keeps their mind alert, quality war is inevitable. Beyond theoretical models, they believe in learning competitiveness in streets, countries and production centers. They consolidate competitive advantages and succeed. Hyundai motors in Only for Private Circulation
- Page 1 and 2: 1 International Business- Dr. R. Ch
- Page 3 and 4: COMPANY COUNTRY OF ORIGIN REFORM PR
- Page 5 and 6: 5 International Business- Dr. R. Ch
- Page 7 and 8: 7 International Business- Dr. R. Ch
- Page 9 and 10: 4. Diplomatic relations 9 Internati
- Page 11 and 12: 11 International Business- Dr. R. C
- Page 13 and 14: 10. Legal aspects 11. Investment an
- Page 15 and 16: 15 International Business- Dr. R. C
- Page 17 and 18: 17 International Business- Dr. R. C
- Page 19 and 20: LICENSOR LICENSEE PROVIDE THE RIGHT
- Page 21 and 22: Supply International Business- Dr.
- Page 23 and 24: 23 International Business- Dr. R. C
- Page 25 and 26: 10. MERGERS AND ACQISITIONS 25 Inte
- Page 27 and 28: 12. TURNKEY PROJECTS 27 Internation
- Page 29 and 30: 13. COUNTER TRADE 29 International
- Page 31 and 32: 31 International Business- Dr. R. C
- Page 33 and 34: 33 International Business- Dr. R. C
- Page 35 and 36: a) Home country Economy 35 Internat
- Page 37 and 38: 37 International Business- Dr. R. C
- Page 39 and 40: SOCIAL ENVIRONMENT 39 International
- Page 41 and 42: 41 International Business- Dr. R. C
- Page 43 and 44: 43 International Business- Dr. R. C
- Page 45: 45 International Business- Dr. R. C
- Page 49 and 50: 49 International Business- Dr. R. C
- Page 51 and 52: 1. POLITICAL RISKS 2. ECONOMIC RISK
- Page 53 and 54: 53 International Business- Dr. R. C
- Page 55 and 56: 55 International Business- Dr. R. C
- Page 57 and 58: 57 International Business- Dr. R. C
- Page 59 and 60: 59 International Business- Dr. R. C
- Page 61 and 62: FDI Policy Initiatives 61 Internati
- Page 63 and 64: 63 International Business- Dr. R. C
- Page 65 and 66: 65 International Business- Dr. R. C
- Page 67 and 68: 67 International Business- Dr. R. C
- Page 69 and 70: 69 International Business- Dr. R. C
- Page 71 and 72: 71 International Business- Dr. R. C
- Page 73 and 74: 73 International Business- Dr. R. C
- Page 75 and 76: 75 International Business- Dr. R. C
- Page 77 and 78: Bahrain international Business Cent
- Page 79 and 80: (ACUs). These are operational units
- Page 81 and 82: 6. Essentials of Trade Finance 81 I
- Page 83 and 84: 83 International Business- Dr. R. C
- Page 85 and 86: RATES TT Selling Rate Exchange Marg
- Page 87 and 88: 87 International Business- Dr. R. C
- Page 89 and 90: 89 International Business- Dr. R. C
- Page 91 and 92: 91 International Business- Dr. R. C
- Page 93 and 94: 93 International Business- Dr. R. C
- Page 95 and 96: 95 International Business- Dr. R. C
46<br />
<strong>International</strong> <strong>Business</strong>- <strong>Dr</strong>. R. <strong>Chandran</strong><br />
successful since they manufactured cell phones. Currently, the business<br />
opportunities exist in every country in the world. The people around the<br />
world are adaptable to the technology too. While technology innovation is<br />
adaptable to the masses, the companies involved in such business prosper.<br />
Today Hewlett Packard, Fujitsn, Apple, Samsung and Lenova compete<br />
against each other by educating the workers on using their laptops and<br />
launch their new versions everywhere.<br />
LEGAL ENVIRONMENT :<br />
This relates to the laws and regulations governing the conduct of business<br />
activities in the country. Before entering any country, firms avail of the<br />
services of local legal firms to understand business interpretations pertaining<br />
to labor legislations, taxes, environment, pollution, investment, distribution,<br />
contracts, logistics etc. The international legal environment has three<br />
aspects:<br />
a) Home country laws<br />
b) Host country laws<br />
c) <strong>International</strong> laws.<br />
a) Home Country Laws<br />
These deal with two important issues:<br />
i) Conduct of the firm in the domestic territory.<br />
ii) Trade with the other countries<br />
For international operators, the home country laws are not stringent. They<br />
are more of facilitating or regulating in nature, but not controlling in normal<br />
practice.<br />
b) Host country laws<br />
These include investment regulations, tariffs and duties, anti-dumping<br />
regulations and protection of local industries from unfair competition<br />
from industrialized countries. Tariffs and duties are used to discourage<br />
imports of non-essential products in order to conserve foreign exchange<br />
and maintain a favorable balance of trade and to generate revenue.<br />
Seven advanced countries impose laws against developing countries.<br />
Super 301 against Indian nylon skirts imposed by USA as inflammable<br />
fabric and ban on Indian sea food by Europe are the examples.<br />
Only for Private Circulation
Change language