Describe the responsibilities and ethical concerns that you feel are important for U.S. companies to consider when doing business in other countries.
Conducting business via the Internet offers numerous advantages, however; it is associated with other numerous privacy and security issues. The advancement in technology allows small businesses to operate online and on a global level since communication is instantaneous. Many clients can purchase their desired products just by a click of the mouse. However, one of the drawbacks is the major concerns relating to law and the Internet. Although the Internet offers incredible opportunities for conducting business globally, it has resulted in various risks for both consumers and businesses.
One of the major challenges that online business faces today is the issue of balancing the free flow of communication and data with the protection of privacy. It is noteworthy that the new world of electronic communication presents numerous challenges for the law. This affects the main categories of cyber laws that include contracts, tort law, criminal law, and intellectual property. Some of the legal concerns raised by security and privacy issues include fraud, hacking, phishing, identity theft, cookies, and privacy issues, commercial email and privacy, computer crime and privacy, and the constitution and privacy among others. Issues such as phishing, spamming, tracking of cookies cause numerous problems that are harmful, and in a global framework, computer and the Internet has made identity theft a major threat in the business world.
In addition, technology has also impacted the contemporary areas of law such as torts and contracts. Many people use social media and webcams in a torturous manner through the invasion of privacy. Additionally, many people are likely to consent to contracts online by just a click of the mouse even without reading the contracts. More so, sales of goods have become more complicated because the manner in which taxes are assessed is very different. In the future, it will be necessary to align technology with issues of safety to ensure that there is a level playing ground.
It is evident that the law has struggled to catch up with technological advancement, particularly, conducting business online. Even where regulations exist, implementation remains a major challenge. As the global business continues to embrace technology through electrical communication, societies must find a balance between technological advancement and security or privacy issues.
Internet domain names are linked to trademark issues. Technology makes it easy to copy and distribute music and movies without paying royalties. Business conducted on the internet raise security and privacy issues. What legal concerns are raised by these issues?
Most of today’s business is done via the Internet; online schooling, online banking, virtual meetings, video streaming, etc. As the rise of Internet use increases, so does cyber crime. In the late 1990s and early 2000s, someone created an online music streaming service, called Napster, that allowed users to download and share music illegally. This was a huge problem because Napster violated many copyright laws. As a result, President Clinton signed into law the Digital Millennium Copyright Act (or DMCA) in 1998. There was a previous law protecting copyright infringement; however, the DMCA amended that previous law and applied to the digital world as well (Rogers, 2012). Lately, movie piracy has become a worldwide problem, and movie apps that allow the illegal use of free movie downloads give users the option to hide anonymously behind VPNs (virtual private networks) for free or sometimes for a small monthly fee. For example, the Popcorn Time movie app allows its users to download and watch movies illegally that are newly released in theaters.
Predict which of these issues will be of major concern in the future in regard to the law and business practices.
As long as the hackers responsible for these cyber crimes are around, these issues will not cease. People rely so much on the Internet that it’s almost impossible to keep any personal information off the Internet. In addition, so many rely on technology to protect their personal information. For example, Google Pay is an app that provides a service to its users to store their credit or debit card information on their phones without having to use the physical card in public to make purchases. Furthermore, many people have had their iClouds hacked on their iPhones after storing personal photos of themselves. As a result of the hacking, there were some celebrities that had those specific photos released online for the world to see.
Rogers, S. (2012). Essentials of Business Law. San Diego, CA: Bridgepoint Education, Inc
Controlling foreign businesses operating within a country’s jurisdiction is vital in keeping the sovereignty of a given nation. Many governments try managing such operations through imposing legislation, rules, and regulations, which control the importation of goods as well as services. Most of the laws are violations and infringements of the provisions stipulated in the World Trade Organizations’ (WTO’s) framework. Some of the approaches are genuine attempts aimed at monitoring foreign business reliability with policies imposed on local firms. However, other policies are meant to shield domestic companies from unwarranted international competition (Robbins, Bergman, Stagg, & Coulter, 2014).
Apart from imposing tariffs and policies on entry requirements, nations further try to manage the conduct or behavior of the multinational firms once they inaugurate within their borders. Their behavior control is vital to management since it entails practices, which impact on national economic gains or performance, as well as national control. Issues like taxation, labor laws, capital movements, alongside competition regulations are controlled easily (Spero & Hart, 2010).
Issues faced by U.S. firms while operating in other jurisdictions
Just like any other multination corporation operating in foreign countries, U.S. companies face myriad of challenges venturing abroad. Obstacles such as hiring the right people for the jobs are unavoidable. Talent acquisition while starting a business is difficult since the hiring team may not be cognizant of the prevailing factors. They also encounter employee management alongside training hitches. That is, effective workers management is essential to bolstered productivity and lowered risks, though, operating overseas may amount to technical difficulties in getting the right people for the job (Grosse, 2005). Besides, identifying the exact market need is cumbersome. The preferences and tastes vary from country to another. Determining the true individual needs of a broad cross-section of the population is not easy (Ristau, 2011).
There are some legal as well as ethical issues, which international businesses should follow. Issues such as variations in the employment laws affect the operations of foreign firms especially U.S. based. Their wages, as well as working environments, are usually superior compared to overseas locations (Adamson, 2010). Therefore, it is imperative to develop the organization’s standards that shield employees while decent into the native economy. Additionally, foreign corporations experience corruption challenges, which is an ethical issue. The U.S Foreign Corrupt Practices Act prohibits malpractices in business operations. Firms which make payments to acquire business are guilty of illegal practices punishable by law. Other ethical issues include pollution alongside environmental concerns, human rights policies, and political factors (Bowie, 2013).
Adamson, J. E. (2010). 21st Century Business: Business Law. Boston, MA: Cengage Learning.
Bowie, N. (2013). Business Ethics in the 21st Century. Berlin, Germany: Springer Science & Business Media.
Grosse, R. (2005). International Business and Government Relations in the 21st Century. Cambridge, England: Cambridge University Press
Ristau, R. A. (2011). Intro to business. Mason, OH: South-Western Cengage Learning.
Robbins, S., Bergman, R., Stagg, I., & Coulter, M. (2014). Management VS. Sydney: Pearson Education Australia.
Spero, J. E., & Hart, J. A. (2010). The politics of international economic relations. Boston, MA: Wadsworth Cengage Learning.
How do governments attempt to control foreign businesses operating within their borders?
When a business of foreign origin comes to operate within its borders the attempt at controlling this business is through agreements or even treaties. International law cannot be applied to these companies as it is not as simple as one person broke their agreement on a contract, it’s an entire country with not only one company at stake but several.
When U.S. companies do business in other countries, what issues do they face?
The U.S. based companies face many challenges operating in other countries. The rules as well as regulations on things such as exporting, importing, and waste management must be followed. Other countries have different bans on certain products being sold within their country. The contracts on an international scale are completely different, there are language and cultural barriers that must be crossed.
Describe the responsibilities and ethical concerns that you feel are important for U.S. companies to consider when doing business in other countries
There are many responsibilities as well as ethical concerns for U.S. companies in other countries. The laws protecting the environment are very different in other countries and must be followed. Another ethical concern for U.S. companies in other countries is the working conditions, what we as working citizens in America is very different from other countries and the U.S. based companies should not only follow their rules and regulations regarding labor but should also attempt to incorporate some of the luxuries workers are used to in the United States such as mandated breaks would be a great one as well as overall improving the working conditions all together for some workers in some countries. Show the employees respect is the most important thing for any business nowhere there are operating.