Global Business Environment
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Chapter 15 : Legal Environment
Tariffs
Special Duties
Ad Valorem
Duties
Compound Duties
Non-tariff Barriers
Sanitary and Phytosanitary Measures
Technical Standards
Trade in Textiles and
the MFA
Anti Dumping Laws
Foreign Investment Regulations
Foreign
Investment Regulations in the US
Foreign Investment Regulations in
India
Foreign Investment Regulations in China
Foreign Investment
Regulations in Japan
Litigation and Dispute Settlement
Cyber Laws
Combating Cyber Crime
Cyber Laws in the US
Digital and Electronic
Signatures
Cyber laws in India
INCO Terms
Chapter Summary
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The global legal environment refers to the legal environment
in international business. The legal environment regulates the operations of
firms in international markets. It is sufficient for a firm operating at the
domestic level to stick to regulations of the land, but organizations operating
in different countries need to know and comply with the laws of the domestic
country as well as all the host countries they operate in.
Governments impose laws to protect the home industry from cut- throat global
competition. They impose different kinds of tariffs, enter into agreements and
sign treaties to protect indigenous industry and promote local trade. When
governments feel that the home industry is affected because of dumping, under
Article VI of GATT, they can impose heavy anti-dumping duties. To protect
domestic industry, they can also impose non-tariff barriers and frame
regulations on foreign investments. |
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In international business, disputes and litigation are common. To
resolve differences between countries, all member nations of the WTO
have established a Dispute Settlement Body. It is the final
authority and passes rulings and frames regulations on disputes
between/among member countries. WTO members have entered in to
agreements and established committees to regulate and govern
international trade in information technology products. Laws have
also been framed to regulate and bring uniformity to the
interpretation of transportation rules among countries.
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Short Case Studies / Caselets