When translated it may not seem to say what it is supposed to, or miss important detail. Sometimes local council needs to be involved for the foreign firm to avoid misunderstanding some local rules.Daniëlle van Dorst in “The Entire Agreement Clause “states: Common law countries dominate when it comes to international trade, because of the many multinational companies. That is why the use of drafting models based on common law techniques is commonplace within the commercial and legal
PIERCING THE CORPORATE VEIL Meaning of ‘Piercing the Corporate Veil’ Starting a limited liability company is always advantageous since directors are not directly liable for any debts that may be incurred by the business. When the corporate veil is pierced, this protection seizes and the business directors and, or shareholders are legally responsible for company liabilities. ‘Piercing the corporate Veil’ is therefore the legal removal of what separates the shareholders from the corporation itself. The Corporate Veil can also be referred to as a legal standing through which corporate owners are protected from the debts and liabilities of a company. Why pierce the corporate veil?
Some say that raising the minimum wage will lift people out of poverty and provide a higher standard of living for everyone. Others believe that doing so would damage the economy and result in the loss of jobs. Raising the minimum wage would be detrimental to the economy, because it would create many problems for businesses and the free market. Raising the minimum wage would have a negative impact on the quality
Western multinationals take over responsibility In the tide of economic globalization, multinational corporations have become a crucial undertaker connecting business activities between developed countries and the third world countries. Meanwhile, in order to develop their business to more comprehensive and better, they would usually seek people or organizations to help them expanding business in third world, they are contractors or subcontractors. On the positive side, they spread advanced technologies, production experience and provide much more job opportunities for developing countries, promoting the development of local economies. On the negative side, their presence causes numerous wicked effects, such as damage to the environment,
Governments of these developed nations are partly to blame for the current circumstances of manipulation and political intrusion faced by developing nations as it was these developed nations that pushed these countries to reform to all for free trade and free flow of international capital. With poor systems of governance and an overwhelming imbalance of power, the current situation should have been foreseen as inevitable and these governments should take responsibility and take action to get these developing nations out of the pits that they have pushed them into. The people of many developed nations are already altering their consumption patterns to support ethical and socially responsible practices of corporations, sometimes even boycotting companies that are deemed to be unethical. This process of consumer social responsibility has been largely supported and advertised by the activities of NGOs. The consumer movement for ethical production practices forces TNCs to alter their behaviour as it is in the best interests of their own profits to act ethically in such cases.
Globalization brought easy access to international sale and business around the world. Corporations can now reach a huge market that is rapidly expanding daily. Opportunity gaps between countries are breached through globalization. Yet, it is a controversial issue to decide on whether the increased volume of cross-border movements of capital, goods and services, labor, information and all other factors of production positively or negatively effects corporations and the society. It is true that globalization increases the productivity of corporations, yet however, it causes job insecurity.
When a corporation or company is registered in more than one country or has operations in more than one country, it may be referred to as MNC. All the operations like production, distribution and marketing are conducted on a very large-scale. Research and Development (R &D) plays a special role as it contributes a lot to the large-scale production. Globalization thus influences the international business by integrating the economies of different countries. This is an interesting scenario where it uses the finance from one country, infrastructure from another country and labour from different country.
One of its impact is that less developed countries have outsourced manufacturing and white collar jobs, which means less jobs for their people. This has happened because manufacturing work is outsourced to developing nations like China where the cost of manufacturing goods and wages are lower. Furthermore, Malaysia had also outsourced jobs in food and beverages industry other than manufacturing, where people from Bangladesh, Indonesia, Vietnam and elsewhere tend to work for lower wages. This in turn has led to increased poverty in these countries due to limited job opportunities. White collar job like programmers, scientists , accountants and other professionals have lost their jobs due to outsourcing to cheaper locations like India although the same skills are held by them.
GDisadvantages of globalization On the other hand, anti-globalists claim that globalization has also resulted in several disadvantages. For instance, jobs are outsourced to foreign countries. These countries offer low job costs, causing home country job losses and wage reductions. Moreover, MNCs outsource production to abovementioned countries, because of lower production costs and more attractive tax, labour, and environmental regulations (Preble, 2010). Opponents believe that globalization ultimately will have a negative result on jobs.
Tesco’s Ownership Tesco’s ownership is a PLC which means Public limited company. Because of this Tesco can easily expand and therefore go global, this is because, if they are a PLC then anyone from around the world can buy shares in that company, thus meaning that Tesco has more capital to invest In their company or other branches around the world, this also causes them to be global. Advantage One of the major advantages of Tesco being a public limited company is the fact that they would have a good status; this is because shareholders would want more dividend/yield from their shares and so they would be spreading the word about Tesco, in addition to this, the more shares people buy the more capital Tesco has to invest in their company to expand it and create other branches. Disadvantages This graph shows that the share price for Tesco has dropped, although this may affect the shareholders more, this would affect the capital made, thus meaning that they have less capital to invest in the company. Another disadvantage of Tesco being a PLC is, the other companies could have the chance to buy Tesco’s shares and take over the company no matter how slight the chance.