How Do Global Regulations Influence Businesses Operating Internationally? What Are The Major Obstacles?

Decent Essays

Chapter 4: 1. How do global regulations influence businesses operating internationally? What are the major obstacles to global regulation? The rationale for government regulation is to protect economic wellness and competition in the market. Without competition, organizations have the ability to exploit the market. Public concerns include unethical practices such as scams, price fixing, and false advertising. Social concerns include pollution, protecting historic or natural resources, workplace equality and safe work environments. Regional trade agreements such as the North American Free Trade Agreement (NAFTA) reduced barriers to trade in the form of a cooperative alliance and an elimination of taxes on trade goods between the United States, Canada and Mexico. The influence of this trade agreement was beneficial to businesses because it became easier to trade goods across international borders and it increased the development of standards. The European Union alliance works in a similar way to facilitate trade by standardizing laws and agreements, as well as using a standard currency among all of the countries. The development of these alliances was to increase competitiveness and to decrease inequality. The winners are the larger corporations who have the resources to dominate larger markets. The losers are the small individual and family owned businesses that do not have the same resources to ante up in a global market. The major obstacles to global regulation are

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