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Legal strategy plays a key role for multinational companies (MNC) in business decision and operation process. According to Constance Bagley, managers of MNC should know how business risk can be minimized by understanding the law and thereby creating value to the business. For a company that carryon business in an international level has to observe legal obligation of the host country in which it is doing business. As such, managers of MNC are to analyze and to perform on legal advice tendered by company’s legal counsel and company’s legal counsel has to acquaint the business concerns witnessed in a global business atmosphere by MNC’s business managers. Thus, business management and legal strategy are interlinked for a company that operates in many countries.
Under globalization, managers working in MNCs are frequently confronted with a mixture of host –country law and parent country laws that influence and affect business operations in other countries. For instance, Title VII of the Civil Rights Act of 1964 was empowered with extraterritorial effects in 1991 and it is estimated that 1991 amendment would adversely affect about 2100 U.S companies which runs more than 21,000 overseas units in 121 countries. Intricacy increases when U.S law is applied in German civil system or in the civil law of other countries that adhere a Scandinavian or a French replica.
The purpose of this research is to analyze the complexity involved in MNCs business in the areas that have legal implications like insider trading laws , intellectual property issues pertaining to launch of a new product , hiring and dismissing employees , an age discrimination case and company policies on staff welfare like childcare leave.
For a multinational company, procedures for dismissing employees are different according to location of its business. If business parent or subsidiary is located in U.S.A, employees can be terminated
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For Strinidal to expand its businesses to other nations it has learned of the environment of the global markets. There are also factors that will affect international business, they are, cultural, political and economic factors. Political events in Strinidal are of great concern because they influence the cost of doing business, the social and economic stability of countries, the accessibility to the human and non human resources.
In order to effectively present the issue to the higher management, it is important to consider if the decision-making process and actions are in accordance or aligned with the organizations’ corporate code of conduct (Schear, 2010, p. 42). It is a fact that making ethical decisions are difficult because “every major decision has a consequence that potentially harm or benefit these constituents (Hall, 2008, p.
Conclusions 10 References 1. Introduction Diversity management is one of the core strategies used by organisations to enhance performance and sustain competitiveness in global markets. Diversity in organisations can be in the form of race, culture, gender, sexual orientation, age, physical abilities etc.
The author states that the last few decades have been characterized by increased globalization. Numerous companies have internationalized their business operations by transforming their business operations from national to global levels. Governments are increasingly opening their economies for international companies to invest.
Both companies have registered exemplary performance over the last few years and they have emerged among the top market players in the industry. Below is a summary of the performance of these two multinational companies. Compass Group Food The compass group food has witnessed good and exemplary performance over the past years.
De Crespigny leased land to Baily and agreed that he would not build on the land opposite that on which the premises stood. Subsequently a railway company compulsory acquired De Crespigny's land under the statutory powers, and the company built on it. It was held that Daily's obligation under the lease "not to build on it" had been discharged by change in law.
Companies in the USA are not left behind. There are multinational corporations such as Mobil, General Motors, and MacDonald's, to name but a few, that have worldwide presence. A point of concern is whether the US companies that operate in other countries have to abide by the US laws.
These shall be discussed below.
The common law system is based on tradition, precedent, and custom and is found in Great Britain and its former colonies, and in the United States. Judges here interpret the law in such a way that the particular
The need for a comprehensive law to protect the people against any form of discrimination and inequality is the main reason for the establishment of the Equality Act of 2010. Prior to the said law, a Discrimination Law Review had been issued in
sity refers to people belonging to diverse cultures working in one organisation, which is rampant in Singapore because of its history of immigrants and also due to its growing economic prospects. The present discourse focuses on the way Singapore manages its cultural diversity.
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