You are working for a major U.S. corporation that wants to expand its reach glob

Question

You are working for a major U.S. corporation that wants to expand its reach globally and has narrowed the search to Mexico. Your supervisor has asked you to prepare a memo that analyzes potential compliance issues with respect to aspects of law and ethics that are specific to one of the two countries. You will choose to prepare your memo for Mexico and address the critical elements below. This will help inform the final executive decision.  

Because you have some fluency with domestic laws, and given your background and history with the corporation, you have been asked to assess the pros and cons of the decision and to provide your insights with respect to the ethical and legal implications of the expansion.

Specifically, the following critical elements must be addressed:

I. What pertinent aspects of U.S. law should the company be aware of in its goal to do business internationally? II. Assess the legal implications of moving business abroad specific to your chosen country. What are the advantages and disadvantages? III. What are the ethical implications involved in this business decision? IV. Explain how other domestic companies have managed to comply with the U.S. laws related to this business decision in the past. How did these companies address potential compliance issues?  

Explanation / Answer

1.a) principle of comity

b)act of state doctrine

c) doctrine of sovereign immunity

2. a) China: form of representation. The advantage is possibility to hire people from China, this will reduce cost of migrating people from us. The disadvantage is that it is time consuming.

B) India: analyze FDI rules and government approval. This merit is that it will provide realistic cost benefit analysis. The disadvantage is government approval is required for buying technology, land ,etc.

C) Dubai: export and import regulations. The advantage is no duties or tariffs on exports. The disadvantage is no import of goods for resale.

3. The ethical implications involved in this business decision are:

a) employment: standards in the U.S will differ from doing business internationally.

b) applying U.S standards is usually not recommended. An effective approach is to develop company standards which protect workers while fitting into local economy.

C) pollution: an ethical approach to an expansion into expansion into new market is to limit the environmental aspects beyond what is required by local laws.

4. A)Taking fully into account established policies in the countries in which they operate and consider the views of other stakeholders.

B)ensuring the timely and accurate information is disclosed on all materials matters regarding their activities,structure,financial situation, performance,ownership and governance.

C) taking due account of the need to protect the environment, public health and safety .

Companies address potential compliance issues as follows:

A) conducting periodic internal reviews.

B) reviewing and updating written policies and procedures

C) updating and enhancing training programs are all components of a robust compliance program.

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.