International Marketing models Essay Example | Topics and Well Written Essays - 1500 words

International Marketing models - Essay display caseThe three models can however not be applied independently. There is an overlap in their practise with the business organizations currently leaning towards the polycentric model. International Business Part One Legal Issues Relating To Global commercialism International business involves trading within and without national boundaries. The fact that business spreads across opposite jurisdictions gives trick out to legal issues especially because many times the laws across countries are not the same. There is therefore, the need to make up the laws. Some of the legal considerations in international trade include the following Tariffs (Customs) and Quotas A responsibility is a assess imposed on minutes and exports within a jurisdiction. The amounts of tariffs charged by the government in-charge determine whether the investors would be able to invest in a particular jurisdiction or not. Many jurisdictions use the tariff rank as the bait to either attract or chase away investors. Charging high rates would effectively discourage investment (Schaffer, Agusti, & Earle, 2010). Quotas refer to the restriction of quantities to be imported or exported in a particular jurisdiction. Governments impose maximum limits of imports to protect their domestic industry mainly from inflation caused by disapproving balance of trade. The governments may impose exports to caution the country from scarcity of commodities which would shoot demand high and thus occasion inflation within the economies. The use of tariffs and quotas affect businesses as they have to toil within the docket of a particular jurisdiction (Schaffer, Agusti, & Earle, 2010). Antidumping and Transfer Pricing Laws Antidumping refers to rules against dumping. Dumping essentially refers to a situation where multinationals import goods of lesser quality and value into foreign jurisdictions. Governments have come out strongly against dumping as it defeats the ideals of trade and erodes the standards by perpetuating mediocrity (Schaffer, Agusti, & Earle, 2010). Transfer pricing is a concept of taxation that concerns multinationals. Owing to the different taxation rates by different jurisdictions, multinationals exploit transfer pricing so as to tax their products within the lower taxation rates jurisdictions. Governments have come up with laws to prevent cases of tax escape and evasion under the guise of transfer pricing. Intellectual Property Rights International business recognizes intellectual post rights although the rights are granted within individual jurisdictions. These include copyrights, patents and trade secrets. Governments have been considerate enough to impart laws to enable innovators enjoy the fruits of their work through the intellectual property rights (Schaffer, Agusti, & Earle, 2010). Sources and Forms of Political Risks Political risks refer to the do the politics of the day in a particular jurisdiction has on th e businesses within that jurisdiction. Political risks could be caused by the government, the people or the activities of competitors and non-governmental organizations. Governments mainly expropriate or nationalize companies in effect winning over the share ownership of the companies. The people may be at war creating un-conducive environss detrimental for business. Activists in the guise of protection of the environment or societal interests may render the business working environment