Ethical Business Obligations

What are the legal regulations and my responsibilities of conducting business overseas? As an exporter I would be responsible for familiarizing myself with the laws that apply to the various types of product I would be exporting and selling, the destinations of where the product will be going, and the end-user (consumer) as I would need to know the targeted market. I would also need to determine if the product required an export license because some countries require an export license others do not, it depends on the classification of the product, the consumer, and the intended use of the product. There are also some due diligence requirements that are imposed on exporters such as information about a customer's identity and their intended usage of the product. I would also be responsible for all required documentation ensuring its accuracy and that it is filed with the appropriate agency. The following are laws that apply to exporters: 1) The International Traffic in Arms Regulations (ITAR) which is controlled by the Directorate of Defense Trade Controls (DDTC), Department of State. The (ITAR) restricts the exporting and re-exporting of defense articles, defense services and related technologies. They also impose registration and reporting requirements on fees and commissions paid in connection with certain types of sales, 2) The Export Administration Regulations (EAR) is controlled by the Bureau of Industry and Security, Defense of Commerce. The (EAR) restricts the exporting and re-exporting of US origin goods and technology which also includes goods and data that are incorporated in foreign origin goods, 3) The Economic Sanctions which is controlled by the Office of Foreign Assets Control (OFAC, Department of the Treasury, and 4) The anti-boycott laws controlled by the Commerce and Treasury. There are more federal agencies with licensing authority found at (www.bis.doc.gov/about/reslinks.htm which is a Department of Commerce website (www.publiccounsel.org).

Before doing business with another country, nation, or state every business owner should perform a country analysis. A country analysis examines the political variables as well as gives insight into their economic performance. Looking at their economic growth, their inflation rates, their budgets, and their trade balance will give you a better picture of the risk factors involved. There are 4 factors that affect a business investment. The first is the size difference and economic growth rate, second is the impact of centralized planning as appose to the market economies availability of supplies, third is the availability of their disposable income, and fourth is whether they have an appropriate transportation infrastructure in place (Pearson, 2009).

International laws can protect a business owner's interest as a foreign-based business by giving them the guide lines needed to ensure the company or organization is in compliance with all international laws and the laws of the country. For example, the owner of the company will need to know what the age requirements are for staffing the business, the differences in pay rates for the staff, as well as the differences in the cultural environment. There are many different things a business manager needs to know and understand in order to be compliant with the international laws. They should be knowledgeable with Public International Laws which are the laws that govern the relationships between nation-states and Private International Laws which are the laws that govern the relationships between private parties that are involved in international transactions.

Business owners should also learn about the national legal system of the country they are thinking of doing business in so they will understand contracts, investments, and corporate laws. Business owners and managers should understand the five major families of law as well. These laws are 1) common law, 2) Romano-Germanic civil law, 3) Islamic law, 4) socialist law, and 5) Hindu law. If a business manager has a better understanding of the laws in the country, nation, or state in which he plans to do business he will be able to make better business decisions when and if legal issues arise (Pearson, 2009).

The ethical code of conduct for employees and vendors should be clear and concise so everyone understands the company's values. There are usually three specific elements involved 1) the introduction, 2) the statement of the purpose and values, and 3) the specific rules of conduct. Then you have the actual implementation of the code, which defines the administrative processes, the reporting, and the sanctions. A company should want to hire individuals that have the same ethical behaviors the company itself believes in and states as their code of