Research Legal Environment in International Business

Legal Environment in International Business
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Legal Environment in International Business
Question One
The legal environment of business refers to the code of conduct that defines the legal boundaries for business activity. The limits come as a result of the laws and policies initiated by the government which at the end has an impact on the international sales. The nature of business spans over some legal realms, all of which are continuously influenced by the needs and demands of the business community, consumers, and the government. Each has a distinct stake and voice in this vibrant legal environment. The environment of the firm provides a practical introduction to the structure and the functioning of business. The settings determine how businesses are created, the ways contractual arrangements are structured, the enforcements of the contracts and how the business close down. According to the research, countries and regions where the legal systems function effectively have an advantage in encouraging both the local and foreign investment over those where the law is outdated, slow, opaque and costly (Frank, 1998).
Question Two
Various ethical issues are affecting the international business environment. The questions revolve around the process of enhancing employment, pollution aspect in business, corruption, and human rights. In the case of pollution, research reveals that not all countries have environmental legislation that makes it illegal to pollute. An ethically operating company should ensure that it does not pollute environment in its process of operation or else it will be shut down by the government hence brining to an end of its operations. Financial issues entail the capital aspect that runs and maintains companies in the business perspective. Lack of adequate finances will lead to some processes of the firm to stop in operation.
Question 3
In organizational culture, it entails the programming of minds that differentiate the members of the human group from another. In the culture of an organization the values, beliefs, behaviors, habits and attitude that distinguish societies. Culture has got various elements which impact the operation of business. An example of cultural elements in a business entails the language aspect. Language organizes the way members of the society perceive the world. It gives important clues about the cultural values. The presence of more than one language in business might affect the operation of business. For many organizations to operate successfully, communication is a significant element which is a feature of the organizational culture. The ability of the memb...