International Laws in Business and Commerce.
International businesses are all monetary transactions i.e. investments, transportation, and logistics that take place between two or more countries or more than one business enterprises that operate in different countries. During international business deals, private businesses take these deals aiming at profits while the government’s goal in such activities is always based on politics. In a simpler view, international businesses are the transactions across borders in an organized financial protocol. These transactions may be in the form of goods and services or other resources. These resources may be capital in monetary form, skilled labor, or valuable goods that are stored purely for financial purposes. Examples of companies widely known for their businesses operating in many nations are Toyota, Phillips, and Coca-Cola.
International business laws are the rules and regulations formulated to safeguard global trade operations (Koh and Fichman, 2012, pp.886-922). These regulations range from the taxes imposed to the parties involved, issuing licenses as a business permit in the global market, and creating tariffs among other practices in the business environment. In the generation of these rules, basic economic regulations are just elaborated and twisted to its effectiveness in the international field.
All the countries conducting this business have laws that almost differ from each other. Before an international business is commenced, the laws of each country involved are analyzed and properly understood (Heiskanen, 1999, p29). This ensures legality in the commercial operation which is a necessity in all business activities. The laws in international business and commerce are mainly focused on the deals between the commercial parties and the laws that govern its implementation. Each party from separate countries in the business must be able to meet the commercial rules of the agreement before conducting the exercises.
Secondly, for a successful commercial agreement, there must be licenses and permits from the authority that prove the legality of the activities being undertaken. These licenses are necessary for the commencement of certain business practices in a foreign country and allow for the purchase and selling of certain commodities and services. It is the role of the international business law formulators to produce and issue these licenses after a careful analysis. The business laws ensure that these permits are unbiased in a way that the business has no negative impact on the civilian’s normal lifestyle. The rules act in favor of the business personnel since it’s a pass for the exploitation of resources within a particular region.
Employment laws, under international business laws, are also vitally considered by businesses operating globally. These laws vary in different countries. These laws safeguard the employee’s payment rates, medical welfare, and general safety. Foreign investment treaties have acted as a motivation for business expansion to the global industry since it offers protection to foreign investors.
Tax compliance is also key in international business and commerce laws. While conducting global businesses, the country under operation is entitled to a certain monetary cut as tax which is pumped into the economy for equal distribution of resources. Businesses operating in many nations pay taxes in all the countries under operation. The amount of tax paid varies in different countries. The rules and regulations about tax collection challenges many business operations hence should be carefully handled.
In conclusion, international business and commerce laws determine business operations in different nations. All global businesses should be in line with these laws to ensure legality. Failure to abide by these rules leads to serious consequences that may be shutting the business permanently hence a call to carefully understand the laws.
Work Cited.
Fugate, W.L. and Simowitz, L.H., 1997. Foreign commerce and the antitrust laws. Aspen Publishers Online.
Heiskanen, V., 1999. Dispute Resolution in International Electronic Commerce. J. Int’l Arb., 16, p.29.
Koh, T.K., Fichman, M. and Kraut, R.E., 2012. Trust across borders: Buyer-supplier trust in global Business-to-Business e-commerce. Journal of the association for information systems, 13(11), pp.886-922.
Rosenthal, D.E. and Knighton, W.M., 2017. National laws and international commerce: The problem of extraterritoriality (Vol. 17). Routledge.