Introduction
International laws are designed to aid the maintenance of global order in various spheres. They standardize the methodologies as well as modalities of caring out activities in the international scene. The maintaining of order and standardization is aimed at ensuring that opportunities are distributed fairly among all without fear or favor. In addition to this the international laws are key instruments in the regulation process as it aids in formation of state policies since, the state policies must be in line with international laws in a bid to enhance efficiency and avoid policy conflicts.
In the cooperate world policies are also very crucial, especially in the controlling of the transactions involved in this industry. Therefore it is vital for the cooperate industry to be governed by a set of laws or polices that are in line with international law. This is done through the state, which have a role to ensure that, they formulate business policies that are in line with international laws relating to business. Due to the complexity of activities that take place in the cooperate world there arises a need for regulation as well as standardization of services, products as well as transactions. It is through international laws that standards are set and regulation formulated, which all cooperation’s or business ought to subscribe or face punishment which is also stipulated in the laws[ CITATION Alo03 \l 1033 ].
The exercising of international law in the cooperate world d to govern and direct the way business is conducted aids in creating a fair ground of competition between firms. The laws ensure that opportunity is offered fairly to all stakeholders in the industry and the available resources are also distributed equally so as to ensure that no cooperate firms or business gets undue advantage over the rest, insofar as transaction of day to day business is concerned.
Completion which is a major, factor especially in international business is put to control by use of international law so as to reduce monopolization of given markets by particular business at the expense of their counterparts in the same industry. International law therefore have a profound influence on the way business is done in the cooperate industry, emanating both positive and negative effects[ CITATION Mal03 \l 1033 ].
This paper concerns itself with a critical as well as objective analysis of the effects of effects of international laws to business especially in America. The paper will begin by highlighting the general effects of international law that are common in different countries and states, before narrowing to the effects it has on businesses in America. Recommendation on the best way to cope, or improve the laws shall also be outlined before an objective conclusion on the subject of discussion is put forth.
International law influences business by affecting the factors that determine the existence of the business. It basically entails the legal perspective of doing business, which is encompasses; contract laws, competitive labor laws as well as strict health and safety regulation of firms.
Abiding to these laws involves, investing in activities that have been emphasized by the law. For instance to be able to enforce, health laws and safety laws a firm is required to invest on the improvement of its infrastructure to meet international standards. This investment is often costly, living the firm in deep financial crises. With the financial muscle of the business having been tempered with co-operations, find they are unable to meet the set production level as the amount of capital channeled to the business is also greatly reduced[ CITATION Alo03 \l 1033 ].
Failure to abide by the laws makes it even worse, since the subjects end up being victimized with heavy fines besides being subjected to the court process that involves a lot of wastage of time, resources as well as money. These laws therefore have a great influence on the financial status of the firms[ CITATION Ian00 \l 1033 ].
Cooperate firms also face the risk of closure in the event that they fail to meet the set standards. Closure of the business means loss of clients as well as market; it even destroys the company’s reputation making it lose investor confidence, as no one is interested in investing in a business that will be closed any moment.
Tax regulation as well as minimum wage allowed is also a very influential factor to the operation of business. The parameters set by international law; concerning tax and minimum wage, greatly affect the budget of the cooperation is as they struggle to a bid by them. Taxes might sometimes be high; hence, they end up affecting the growing companies whose financial muscle has not yet stabilized. On the issue of wages, employees are likely to boycott working when they realize that their wages do not meet international standards. This is a very crucial resource in the company and when they get off the business, the productivity is affected[ CITATION Mal03 \l 1033 ].
International laws generally influence the performance of business in the international scene, as it determines how business transactions are to be conducted as well as set standards upon which this activities and performance is measured.
American Business Practices
The American culture is considered one unique culture which in many ways is misunderstood by most foreign citizens. So huge is the difference sometimes that it might lead to jeopardizing the closure of deals and even developing of healthy business relations. To understand the American way of doing business, or say American business practices, one has to take a keen look at the culture of the Americans, the culture is always influenced by the people in that country and this also leads to cultivating business practices in the same manner. To fully understand the environment of operation, we will examine the different aspects of the same:
The different aspects of business environment include; the technological environment, the legal environment, the environmental environment, socio-cultural aspect, the political environment and the educational environment.
Political environment
The Americans are largely capitalists. The political situation is therefore that of a free market where everybody is allowed to operate without limitations of the environment. There political system believes in the savings of earnings and investing the capital earned to create more capital. This is political ideology with which the Americans operate. This therefore doesn’t allow them to shoulder political limitations. This ideology has its challenges as well as advantages. The ideology encourages competition among businesses, through the competition investors are allowed to freely operate in the markets, this leads reduction of prices in order to attract a significant clientele base and thus in order to remain afloat in the business. It also leads to improved services to the general public as suppliers are competing for the same clientele base. As a result, the suppliers are tuned as they learn to b creative and innovative; the general atmosphere becomes quality oriented and not profit based. The clients on the other hand remain the winners. They are able to access quality services at the lowest possible price[ CITATION Whi99 \l 1033 ].
The legal environment
The legal environment doesn’t differ much with the political environment. Most of the laws governing the operation of business are reflected upon the leadership style that is prevailing in the given country. And so for the Americans, their laws are tuned towards capitalism which goes a long way to encourage competition as explained above. The legal system is fact and effective leading to hearing and passing quick judgments to cases. The courts are therefore a frequent place for businesses as most of the citizens are well informed of the law and are always willing to begin any legal procedures on any business which is deemed to be lawful. It is important to mention that every state in the United States of America is likely to have unique laws governing the operation of businesses in that area. For instance, some businesses may be considered legal in some states and illegal in others. This leads to difference in legal procedures governing businesses. One may not assume that everything which is legal in California for instance, is legal in Atlanta simply because all these are in America. This alone is an indication that International case laws may to some extent prove irrelevant in the American context. As explained above, the American laws not streamlined as in most other countries, this leaves the country at a unique legal position as compared to the rest of the world. It therefore easily follows that using the international case laws to preside over American case might not reflect the actual facts for a case since the laws differ. The approach that judge will use in an American case will involve the legal procedure that happens in the particular state and not in the world, the judge sitting on an international court bench will also have a different approach to the law regarding the difference in cultural ways and approaches[ CITATION Alo03 \l 1033 ].
Cultural environment
The cultural environment poses the greatest difference. It determines and defines one approach to things and occurrences in the world. Most people define culture the way of life, which is what it is considering its implication on the way we live. Sour culture will define our laws and our laws will in turn define our practices. Matching the practices or even the laws, for this matter, may lead to lot discrepancies of the various legal systems considering their differing origins. The use of international case law on American businesses may in most ways coincide with the American legal system but sometimes it would be misleading to follow. In such cases the application of the international laws might lead to discouraging of competition among the American business which will lead to loss of revenue for the government and limitation of opportunities for the American citizens. Some case laws work on regulating means and ways with which to compete, this puts up measures which ensure that not a party is offended by the competition and that an equal environment is provided unto all to compete[ CITATION Alo03 \l 1033 ].
The above factors are the ones most likely to affect businesses if international case laws are applied local American cases.
Effects of international law on American business practices
America as a nation has a role to play in the enactment of the international business law. This is meant to create a favorable environment that will ensure the security on intellectual property, indenture enforcement, the ecological protection, and labor principles. These laws are to ensure uniformity in all this sectors of the economy.
But these laws have some influences on the American business practices. This will be discussed according to;
The intellectual property
America as a nation has always been the master mind of most of the business practices in the world. People do come up with practical issues that are geared towards the development of the business environment. Hence, the diffusion of these ideologies from one state to another are being controlled by the international law. Hence, a personal idea that can be lucrative to the Americans, this will affect the American business practice for they can manipulate the ideology to satisfy their interests when it has been assimilated by the outside world. But these is not the case for the international law has some regulatory based on the assimilation of the intellectual property from one nation or border to another. For this can be the case I other countries, an ideology can be developed which can be beneficial to the business practice in the United States of America, and they will be in need of it, hence the international law will apply the same to them when they are adopting the intellectual property of another nation. This has some effects on the business practices of America that can be both positively and negatively linked to the business practice in the United States[ CITATION Ian00 \l 1033 ].
Contract enforcement
When countries come into an agreement, each has some interest that they want to gain, thus the contact is a mutual agreement between the two nations. America has a business practice of capitalism, hence to safeguard the interest of a nation that practices a socialism and has an agreement or contract with the American, The International law applies to ensure that the contract will benefit both parties involved in that agreement. This influences the American business practice for even if it won’t gain much because of the different ideologies adopted in a business environment. Hence, this can affect the American business practice for they can always be a positive gain or a negative gain between the two parties. Especially currently, most nations which are socialist in practices the likes of china have risen and are the real competitor of America in the business world, and due to the business ideological differences adopted, the international law comes in to control the business terms to safeguard both parties interest. Because all these nations are major contributors to the enactment and application of the international business law, and all bring on what they are sure will safeguard their own interests.
Ecological protection
This is one of the serious issues that are currently influencing the American business practices. There is a rapid change in the environment due to the business activities that are being carried out by mankind on the earth’s surface. Most of the world superpowers have realized this and there has to be a way ecological change need to be controlled. Hence, the international business law to come in setting up the standards that will regulate the level of atmospheric omission by individual nations. This will automatically affect the business practice of America; this is because it will affect the level of production of goods of a nation. The application of these will negatively affect the business practice of America but to the interest of all nations it has to be implemented to regulate or control and take care of the ecology[ CITATION Whi99 \l 1033 ].
Labor values
The populations of individual nations do determine the labor input of a nation in a business environment. The level of development and living standards also do determine the input expect per labor input. Hence, this has affected the business practice in America. Some nations like china and the developing nations have less input when it comes to labor. And there is availability of labor in these nations. Hence, America has to outsource labor from the nations that invest less in labor input to output the same level of production hence; this has affected the way in which America is practicing it business. But all in all, the international has some regulations based on labor exploitation. This will still influence the business practice even though America has to outsource labor across their border[ CITATION Ian00 \l 1033 ].
Conclusion
Even though America was the world superpower when it came to the implementation of the international law, currently the rise in nations in china and Middle East has influenced the way business is being practiced both internally and externally in America. These international laws favor or at times does not favor the American business way of practice. But, the most essential thing is that the international law is trying to bring into place a uniform way of business practices across the world.
References
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Britton, I. W. (2009). International Law. Ottawa: Pearson Education Canada.
John R, R. A. (2000). The Legal Environment of Business. New York: Dryden Press.
Nathan, M. (2003). International Law. London: Cambridge University Press.
Whitman. (1999). The Legal Environment of Business. London: McGraw-Hill.
