Question

wk 5-2 please explain and provide examples

How do governments attempt to control foreign businesses operating within their borders? When U.S. companies do business in other countries, what issues do they face? Describe the responsibilities and ethical concerns that you feel are important for U.S. companies to consider when doing business in other countries

Answer 1

1. One of the forms in which a government seeks to control foreign businesses working within its borders is through a committee which ensures that the laws of another country will be suspended and implemented by the nation to the degree that the laws and public policies of the host nation are in accordance. International business is different because when a company crosses international boundaries, the environment changes. Usually, an organization knows the home environment quite well, but in other countries it is less familiar with the climate and needs to invest more time and resources to understand the new environment. Another method is the 1976 FSIA ( Foreign Sovereign Immunities Act ), which stipulates that a foreign national can not usually be charged with few exceptions, is a further step. And finally, support for an act of State means, in one country, that courts will not challenge public acts carried out within their own territory by a recognized foreign government.

An example of government regulation is in India, where only 10 of India's total states combined allow foreign organization to operate.

2. There are definitely plenty of barriers to US companies doing business in other countries. When doing business outside the region, export is one of the key factors. For example, Most Businesses have to know the rules of export and have the right to sell their goods to another market.

The import is another problem. For example, most nations have import rules and restrictions as well as the USA. Certain questions include the language in which the contract is drawn up and in which country? What is the law applicable?

3. As U.S. businesses conduct business outside Abroad, they prefer more to twist the law more than when they work within U.S. boundaries. Many US firms seem to follow the law when dealing with Americans who work in the United States, but they tend to forget that they deal with people when it comes to foreign workers. Discrimination is a major problem in most US foreign companies. Companies are responsible to, and for, their workers, men and women around the world. Everybody wants to be seen as a human. You must honor and accept your integrity. You need a sense of safety in your life. It is a matter of equal and reasonable pay, safe, tidy and stable working conditions. Companies must be conscious of ways to support their staff and their families.