International-Business-Dr-R-Chandran-E-book

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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
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