Cultural Reconciling Policy and Principle †Free Samples to Students

Question: Discuss about the Cultural Reconciling Policy and Principle. Answer: Introduction International business encompasses the commercial activities that are undertaken for promoting the services, goods, people, ideas, resources, and technological access across national boundaries. The international business often occurs in different format (Besley, 2015). For instance, the firms need to move the goods from one country to another during which the firm requires establishing the international business. Business expansion in a different country is another significant aspect of establishing the international business. However, while developing the international business in a country, it is important for the business marketers to recognize the market feasibility and the external challenges that significantly create impact on the business operations. The study explores the legal and political environment in UK to identify the feasibility of doing business. The study would develop the clear understanding of the considerable factors and issues that have the recognizable impacts on the business entities. Political environment in UK United Kingdom is one of the developed countries that experience stabilized political structure. The stale political scenario of the country attracts many foreign investors for establishing their business or investing capital amount for the local brands (Bekaert et al., 2016). The country has achieved the sixth position in the economic ground. It is noticed that UK is a constitutional monarchy, but quite symbolic in nature. The reformation in the banking sector has enabled the country to attract almost 23 billion in foreign direct investment (FDI) (Export.gov. 2018). Therefore, the country has achieved the leading position for the foreign investors to establish their business. Both the local and foreign have to pay 21% tax whereas the personal income tax rate is up to 20% (Doingbusiness.org. 2018). However, after the occurrence of the Brexit process, the foreign investors need to follow both the UK government rules and EU regulations. Such regulations can be challenging for the forei gn business investors. The foreign countries can invest more on the manufacturing sectors by developing more innovative technologies. However, it has been observed that the EU referendum and the Brexit effects are quite challenging for the foreign investors (Export.gov. 2018). The strict EU regulations sometimes create the obstructions in investing on the goods and employing the local manpower (Subedi, 2016). On the other hand, it has been observed that the UK government has introduced the deep cuts to the public sectors that are affecting many of the business and preventing the foreign investors in investing the capitals in the trade businesses. Legal Environment in doing business in UK Business marketers need to follow the basic legal aspects while doing business in UK. The most important legal aspect of UK is the taxation process. It is observed England, Scotland, Northern Ireland, and Wales are the separated jurisdiction for the legal purposes (Bekaert et al., 2016). There is no restriction in the foreign investments or any ownership. Banking, defense, financial services, and media industry can avail the opportunity to access the UK market for more profits. First and foremost concern of the foreign business marketers is about the data protection norms. Every foreign business requires complying with the Data Protection Act 1998 when the business would use any personal data (Stahl Tung, 2015). The regulations in the financial service industry in UK are much strict. The Financial Services and Markets Act 2000 regulates the functionalities concerned with the financial accounts and commercial services (Cavusgil et al., 2014). Moreover, the foreign business marketers even face the considerable challenges from the taxation, marketing agreements, and intellectual properties as well. In the post-Brexit period, the foreign investors need to follow both the UK government rules and EU regulations, which determine maximum challenges for the foreign companies. In fact, it takes longer time to register for the business that is to be established in UK. Recommendations Observing the scenario in the UK market, it is necessary for the business marketers to comply with every rule and regulations at the initial stage. It can be suggested that developing the partnerships with the local business would be much helpful in such context. The local partners would help in understanding the legal norms and the method of dealing with such regulations. Moreover, if the foreign traders would collaborate with the local partners, the company requires paying tax either to the EU community or UK government. The separate entity requires paying the trade tariff as per the structure set by both the EU and UK Government due to the Britain referendum. However, the taxation process would be similar to the local companies. However, it would be much beneficial in understanding the method of paying taxes and the investment facilities as per the EU regulations. Conclusion The study highlights the legal and political environmental effects in UK. The stable political condition and the larger economic structure are quite beneficial for the foreign investors to establish their business. However, the Brexit effects and strict regulations of EU are the major obstruction in developing the business entity. On the other hand, legal rules imposed on the foreign traders and the taxation process are quite challenging for the foreign investors. It is important for the foreign investors to pay attention towards the legal aspects related to the taxation, marketing agreements, and intellectual properties. Advises from the legal consultants would much been beneficial in such context. Moreover, the foreign investors can establish the partnership business with the local business. It would be much beneficial in understanding the regulations posed by the UK governments and regulatory bodies. References Bekaert, G., Harvey, C. R., Lundblad, C. T., Siegel, S. (2016). Political risk and international valuation.Journal of Corporate Finance,37, 1-23. Besley, T. (2015). Law, regulation, and the business climate: The nature and influence of the World Bank Doing Business project.Journal of Economic Perspectives,29(3), 99-120. Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., Rose, E. L. (2014).International business. Pearson Australia. Doingbusiness.org. (2018).Doing Business in United Kingdom - World Bank Group. [online] Available at: https://www.doingbusiness.org/data/exploreeconomies/united-kingdom/#paying-taxes [Accessed 29 Mar. 2018]. Export.gov. (2018).Export.gov - Doing Business in the UK. [online] Available at: https://2016.export.gov/unitedkingdom/doingbusinessintheuk/index.asp [Accessed 29 Mar. 2018]. Stahl, G. K., Tung, R. L. (2015). Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship.Journal of International Business Studies,46(4), 391-414. Subedi, S. P. (2016).International investment law: reconciling policy and principle. Bloomsbury Publishing.