Global Business Environment
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Chapter 13 : Regulatory Environment
Purpose of regulation
Employment and
Labor laws
Labor laws in India
Discrimination in Employment
Environment and Pollution Control
Intellectual property rights
Regulations related to product promotion in different countries
Securities regulation in different countries Securities and
exchange board of India (SEBI)
Securities and exchange commission
(SEC)
Sarbanes-Oxley Act- (SOX)
Anti-trust laws in the US
Sherman
antitrust act of 1890
Clayton antitrust act of 1914
Federal Trade
Commission Act
Regulatory environment in Europe.
Chapter Summary
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The purpose of the regulation is to ensure equality and
justice in society by framing laws, acts, and regulations. As the labor laws of
various nations differ an authority is required to regulate matters relating to
employment and labor at the international level. The International Labor
Organization has laid down many laws and guidelines to regulate labor matters in
the international trade.
India has a number of laws dealing with labor matters, These laws aim at
providing give legal and corporate status to workers, protecting their health,
safety and welfare, giving them proper benefits in case of sickness, maternity
or any injury, to ensuring that they receive regular and prompt wages and other
benefits. All those countries (including India) which have strict laws are now
liberalizing the norms to suit the changing conditions. |
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Discrimination at the work place is very common
in all parts of the world. This issue has been addressed by the
United Nations at the international level. In the US it is
considered illegal under the Title VII of Civil Rights Act of 1964,
to discriminate against people on the basis of gender, race, etc. A
number of laws cover the issue of discrimination in employment in
India.
The disparity in the laws of various nations relating to
environmental protection and increasing cross-border trade has led
to many differences between them. Multilateral Environmental
Agreements (MEAs) have formed under the WTO to deal with issues
relating to the environment. Apart from them, a number of
conventions and programmes have been conducted to ensure a clean and
safe global environment.
Intellectual property rights are given to those who have invented a
new method or technology useful to the entire society or to those
who have created an original artistic or literary work. Trade
Related Intellectual Property Rights (TRIPS) are formed by the WTO
to regulate issues relating to intellectual property at the
international level. Intellectual property rights cover trademarks
--- those marks which help customers identify a genuine product from
a fake one); copy rights—(the rights given to any original literary
or artistic work in tangible form); patents – (given for any new
invention or innovation which is beneficial to society).
License is an official sanction given by the government to import
certain goods which are under the trade block. The regulations
related to product promotion differ from country to country and from
commodity to commodity. International marketers should thoroughly
understand the norms and regulations of the foreign country before
entering its market. The culture, beliefs, and language of the
people should also be taken into consideration apart from the laws
of the country.
Similarly, regulations related to securities differ between nations.
The Securities Exchange Commission (SEC) regulates all the issues
related to securities in the US, while the Securities Exchange Board
of India deals with all issues related to the capital and money
markets in India. Similarly, the Financial Services Agency in Japan,
the Federal Institution for Supervision of Financial Service in
Germany, the Financial Services Authority in UK, the Securities and
Futures Commission in Hong Kong etc are the regulatory authorities
in their respective countries.
The Sherman Antitrust Act, The Clayton Antitrust Act, and the
Federal Trade Commission look into anti-competitive policies in the
US. They are framed to ensure fair competition and prevent
monopolistic abuses in the market. The European environment is
regulated by the European Union. Among the various divisions of the
EU, the European Commission acts as the executive body and plays a
major role in the regulation of the European market. The failed
merger of GE and Honeywell proves this point.
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Short Case Studies / Caselets