Under Armour
How have the norms and regulations of national government in its 'home' country shaped the way Under Armour has gone global? Under Armour had gone global with about 300 retail stores in 13 countries and aims to have more than 1,000 stores by 2018, with expansion plans in South American countries. There are certain norms and regulations of the US government that have helped shape the growth of Under Armour. Under Armour takes advantage of the norms and regulations of national government and works on its core values and adhere to these practices when doing business with suppliers. It does business only with those suppliers’ and subcontractor that work within the laws of the United States, and any breach of those laws or the Code can lead to termination of the business relationshipHow has Under Armour gone global in part to avoid aspects of national government such as taxes or labor protections? The U.S. Department of Labor and the Federal Trade Commission deal with the retailers, who are believed to pay the highest corporate tax rates. However, the Internet-based retailers are not charged with state sales taxes unlike the most brick-and-mortar retailers. Any changes in tax laws can affect the effective income tax rate and profitability of a company. Therefore, Under Armour regularly assesses any changes in tax laws and valuation of deferred tax assets and the income tax audits in different jurisdictions. The idea is to determine the adequacy of their tax provision. Their effective tax rate has increased over the years because of foreign investments1that lead to lower foreign taxable income. Products are dispatched directly to the customer
____________________1 Under Armour, Inc." investor.underarmour. 2014. Web. 16 May. 2016.
and sales taxes gets imposed on their revenues from product sales and changes help the company to go global.
How has Under Armour tried to shape national government at home and abroad through lobbying? Under Armour is well aware of industry’s human labor practices and environmental regulations that earn it a suspicious nature. The giant retailer has committed to maintaining a standard of the industry while adhering to its code of ethics. The company has an aggressive expansion program outside the United States and opening new doors via partnerships with distributors 2. The revised Code of Ethics and Business carry amendments to align the Code with the progressive global nature of the business, and those efforts and changes help the company to go global. The retailer upholds global standards of human treatment and confronts environmental ethics. The company offers a discount to active duty Service Members and Veterans at their stores. They support police, firefighters and other first responders and their services The Company encourages its U.S. Armed Forces, law enforcement, first responders and related government agencies to join GovX and offers them good savings. Their founder has helped build the Company into a leading one for performance apparel, footwear, and accessories and he serves on the Board of Directors of the National Football Foundation.
____________________2 Phalguni Soni. "Analyzing under Armour’s Latest Growth Updates." marketrealist. 2015. Web. 16 May. 2016.
BIBLIOGRAPHY
Soni, Phalguni. "Analyzing under Armour’s Latest Growth Updates." marketrealist. 2015. Web. 16 May. 2016.
"Under Armour, Inc." investor.underarmour. 2014. Web. 16 May. 2016.
