Organizations and Globalization Essay Example

Companies strive to become global or expand to various countries to attain an impressive business accomplishments. This idea often comes after building a loyal local customer base, hence the need to expanding to international levels, which offers an opportunity for growth. There are, however, many factors to consider as well as challenges to anticipate before entering another country for business reasons. Some of the factors to consider include the issues of civil and common law systems, copyright and intellectual property (IP) infringements, and legal ramifications, labor laws and human rights, public perceptions, and unions governing business operations in the country of entry. The mentioned factors may either benefit or detriment a company depending on the applied approach and plan of entry.

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There are various issues of civil as well as common laws in the world today. This challenges include different country-by-country policies, different common laws, and diverse trade laws across the nations. Different laws can hinder expansion of businesses to countries with non-uniform regulations from the country of origin. For instance, the U.S and other developed countries have firm legal rights to protect the citizens, labor laws to protect the employees, and trade regulations to control businesses and solve the threats to human rights. However, in most developing and underdeveloped countries, the issues of concerns include rampant child labor, unfair workers' treatments, poor wages, and unsafe working environments. Other countries even experience delayed salaries and lack of medical insurance or health care. Some employers take advantage of the situations in the countries with poor policies and deliberately oppress the employees and customers for their benefits. The resolutions to these issues may include coming up with active trade unions to aid in active bargaining power, enlightening the employees to understand ethical practices, and engaging the firm management that is oriented to sustainability and the future success of the company. Countries with intention to engage multinational businesses must enter into treaties and set stern actions to protect the business environment and susceptible employees' exploitations (Bertrand & Statnik, 2018). Any country without the opportunities and measures to protect employees is not best for business expansion due to poor investment environment and cutthroat and unethical competition (Lupu, 2015).

The role of international treaties is to develop common laws to govern international trades. For instance, the countries that signed the UN's Conventions on Contracts for the International Sale of Goods (CISG) have uniform/common systems to carry out local and international businesses. The smooth running of businesses among the CISG treaty member countries is provided by the link and regulations and policies. The countries that trade with or in the CISG member countries face challenges of ambiguity in the interpretation of business laws, and the convention was organized to avoid such instances (Schwenzer & Hachem, 2009). Common policies are very crucial in enabling the trading countries to avoid time wastage in contract and term negotiations.

Countries that refuse to sign the treaty lack the sovereignty and delays ratifications. Therefore, companies that operate in such countries are usually compelled into understanding the domestic laws (Kilian, 2000). This form of concept is grounded in the stability of the relationship the company has built, and it is what would guarantee a long-term business survival in that country.

The general analyses of market regulations, legal ramifications, and the general business environment show that China, regardless of its weak legal guidelines, presents business opportunities that are worth the investments risks. One of the major reasons for the success of international businesses and positive globalization is the existence of favorable international corporation from the country of entry. The company can take an advantage and influence the policies from the country of operations. In China, the government role of regulating the organizations has become a precarious balancing act, and the civil societies and non-governmental organizations are now involved in whistleblowing to keep the global companies on toes regarding ethical practices. The advantage that the company will have upon the entrance to China's business industry is in relation to the relaxing stringent regulations by the government to allow the entry of multinational companies into the domestic market. This factor will allow the company to adopt appropriate policies that suits it as well as the public. Also, some of the poor regulations within the country will leave the public and employees to cope easily with the policies and strategies of the company.

It is very important to consider the IP when planning to expand to the China's market. Showing the IP in China could be a problem due to the county's IP laws. The technology shown to either the government officials or companies may easily make its way into the domestic services and products, to benefit the Chinese enterprises. The Chinese have, however, vowed to improve their policies regarding intellectual property and policies on business secrets. The solution to avoid IP theft may involve setting up an R&D office in China that is oriented in researching new copyrights in collaboration with the Chinese partners. The approach will task both the parties with incentives to avoid IP leakage.

When carrying out businesses in China, the company needs to consider labor laws and human rights regulations. It is upon the management to do their due diligence by visiting the country and understand the child labor laws and the human rights of employees. The working hours, payment, safety and health, and management in trade unions is important to consider when doing work in China. There is a pressing concern especially with child labor, unpaid overtime, and excess working hours that local companies pose to employees. The company must set strict regulations to protect the employees' rights as well as children's rights. This approach is one way to win the workers loyalty, increase marketing, and later improve on the customer base. The company can also incorporate the fair labor associations, the NGOs, and international labor organizations (ILO) to set a working and business environment that the locals will embrace.

The non-government organizations and the civil societies play very crucial role in the China's regulation of unethical business practices. The entry of the company in China does not enjoy the lax laws unregulated, but the NGOs and labor and employee rights unions are involved in the quest for regulations. The profit seeking company needs to engage actively in both labor and environment laws to protect the future business sustainability and stability. According to Santoro (2009), foreign firms have come in the republic of China and imposed strong policies than the local government.

China considers the performance of the international companies as means for economic growth, and encourages their entrance. Also, the engagements of NGOs and international firms in regulations of human and environment sustainability ensures little violations of the common standards. Therefore, firm's expansion to China as well as the country's lax laws will enable active participation of the management to direct the company's engagements in the ways that best suits them.

Business operations in China are quite different from those of the United States. This is because the two countries have independent business cultures. A business model that is suitable for the US culture cannot be applied in China and succeed. Therefore, the practices must be adjusted according to the characteristics of the Chinese businesses. Business practices in the world are usually in non-conformity with the practices in China. The company must, therefore, set a team to collaborate with the local team in China and learn the cultural complexities and sophistications that might exist in the market.

Another important aspect of the international business expansion is the building of a strong business relationship. In China, it is very crucial to get to know the Chinese counterparts outside the boardroom. Relationship building would require the company management's patience, the sealing of deals in China's business may need more time than in the Western countries. For a company to succeed in China, it needs to cultivate a positive relationship within the industry, trade organizations, and government agencies.

There are vast and genuine opportunities for foreign companies in China despite the challenges. Therefore, to succeed in the market, the management must take a realistic approach and leave the notions of the common methods businesses are conducted in the U.S. The achievement of companies in China needs cultural understanding, patience, and perseverance.

Conclusion

In conclusion, China is, despite its business instability and absence of firm trade policies, a good ground for business. Goods and services worth thousands of dollars are sold in China, and seizing the platform would be productive to the company. Moreover, the economy of China is the fastest growing in the world and companies that seize the platform early enough have a vast opportunity for growth.

References

Bertrand, J., & Statnik, J. C. (2018). Can relationship lending substitute for a weak legal environment?

Lupu, Y. (2015). Legislative veto players and the effects of international human rights agreements. American Journal of Political Science, 59(3), 578-594.

Santoro, M. (2009). Should LDCs Love MNCs?. Foreign Policy. Retrieved 1 May 2018, from http://foreignpolicy.com/2009/11/17/should-ldcs-love-mncs/

Kilian, M. (2000). CISG and the problem with common law jurisdictions. J. Transnat'l L. & Pol'y, 10, 217.

Schwenzer, I., & Hachem, P. (2009). The CISG-successes, and pitfalls. The American journal of comparative law, 57(2), 457-478.