Free «Legal Operations in Business» Essay

Legal Operations in Business


Dispute resolution is resorted by some organizations before filing a formal suit in the court. The intention of dispute resolution is to establish issues and a chance for the parties to settle their claims before taking legal actions about it. Disputes are inevitable in business transactions, especially with the prevalence of trade between organizations domiciled in different countries. To address such disputes, the United Nations assigned the World Trade Organization to assist in proper settling of international disputes. Moreover, the UN does not endorse that the disagreements be raised to the WTO initially, the UN also respects the role of every sovereign government in assuring that disputes will be settled on the domestic level.

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Two countries will be compared in this paper in terms of settling their disputes, which are United States and China.

United States is known for their open market, and any disputes are being settled under the law. Dispute resolutions are annexed to the remedial laws in every state in the country. Moreover, for resolving the dispute on the national level, the National Conflict Resolution Center is the department responsible for it.

With the opening of China to the world regarding its trade and industries, the Chinese government became more lenient in terms of making their policies for domestic and foreign businesses in the end. Market globalization primarily refers to the merger of separate and historically distinctive national markets into one global market. Administrative litigation had been a prominent symbol of the government’s commitment to law based governance and rule of law, wherein the Administrative Litigation Law (ALL) was passed in 1989 (Peerenbom & He Xin, 2012).

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What are the Benefits of Utilizing the Negotiation Process First?

One benefit of utilizing the negotiation process first is to lessen expenses for the business. Settling the disagreements in the domestic level can help save time and money for the said firms who are domiciled in different countries. This also endorses globalization and free trade wherein it shows lesser hassles even if one intends to penetrate the international market.

With the globalization of markets and the increasing degree of business activity transcending national boundaries, institutions are in dire need of helping to secure, regulate and manage the global marketplace and for the promotion of the creation of transnational treaties for the governing of the global business system.

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The influence of globalization in the area of marketing is traced through the introduction of the concept of segmentation. Segmentation is defined as the manner that companies are trying to recognize customer groups with needs that are homogenous. Its benefits for companies are known to be clear and straightforward. Knowledge of the needs of the segments or definite customer groups allow for the adoption of marketing strategies consequently, as well as perform efforts for the satisfaction of the needs of those segments more effectively and efficiently. The process of segmentation is worth the undertaking of a company if a number of requirements are met like the segment’s homogeneity, heterogeneity among the segments, access to meaningful data of segmentation, and sizable population. The first two requirements, heterogeneity and homogeneity among segments are of significant interest in the area of cultural diversity. Segment homogeneity means that individuals in the global market should fit some typical profile. Meanwhile, the heterogeneity of the segment means that the market segment must show some similarities in purchasing behaviors.

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How Much Power and Authority could the WTO Enact During this Process?

The WTO has established a number of other committees dealing with areas of substantive and negotiating interest, such as trade and the environment, trade and development and regional trade agreements (Palmeter & Mavroidis, 2004). However, the WTO only has advisory powers over the countries and also the organizations which are under them. This is because the international laws promulgated by organizations, such as WTO and UN, lack power to penalize a certain entity because there is no single organization or country that governs a sovereign nation. The UN believes that every country must be respected; thus, it cannot compel one to perform anything which the latter is against.

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What are the Implications of Choosing Private Law to Seek Ratification? Explain

The implication of choosing a private law to seek ratification strengthens the stance of a country to be sovereign. This means that the firm or entity finds a shield under the laws promulgated by their countries. The decisions of the courts cannot be easily reversed by the international courts as it must be respected. It must be remembered that international organizations such as WTO have not power to compel an entity to perform or not to perform an act, what they can do is to merely advice. Firms, with the aid of globalization, could outsource their operations and production in different locations for the lowering of their costs. Likewise, market transactions have also turned out to be more efficient because of technological globalization. These new opportunities have significantly provided rapid growth in several economic sectors around the world, but it cannot be abused by a local law.

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What are the Ramifications of Choosing the Governing Law? Explain

Choosing the governing law has the consequence of lack of enforcement of the said law against another party. The governing law may not be favorable for a certain party domiciled in a different country, thus if the competing party will gain a favorable decision, the other party may not follow it because of the principle of sovereignty of every country. Moreover, when all else fails, the losing firm can bring it up to WTO, who may ask or supervise a certain country regarding their decision.

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