Business Abroad Research Articles

The Politics of Law in the Madrid Protocol Ratification in the Form of President Regulation Related to Trademark Registration

The implementation of Madrid System in Indonesia since the 1st January in 2018 is expected to have a positive impact in terms of international trademark registration to allow and protect entrepreneurial entities, from individual, legal, and business entities to compete globally.On the other hand, trademark registration originated from Indonesia using the Madrid Protocol Systemto other countries is still considerably minimal compared to trademark registration from other countries to Indonesia. There are issues point out in this writing, specifically to describe the politics of law in the ratification of Protocol related to the Madrid Agreement Concerning the International Trademark Registration, 1989 and also obstacle adhere after the ratification of the Madrid Protocol in the registration of international trademarks in Indonesia. Result of this study is that the ratification of Protocol related to the Madrid Agreement regarding International Trademark Registration, 1989 conducted by Indonesian government through Republic of Indonesia Presidential Regulation No. 92 in 2017 regarding ratification of Protocol Related to the Madrid Agreement Regarding International Trademark Registration, 1989 contained in State Gazette No.212 in 2017 is already appropriate. However, judging from the timeframe of the Madrid Protocol’s formation was formed already since1989, the ratification in Indonesia is considered delayed, knowing that this ratification is very beneficial for protecting entrepreneurs to expand their business abroad. Obstacles revolve around the implementation of the Madrid Protocol system in Indonesia are due to several reasons; few of them are of lack of encouragement from the entrepreneurial entities to register their brand, thougherapplication conditions from some countries compared to in Indonesia, and unavailability of online platform to register international trademark.

PAZARA GİRİŞ YÖNTEMİ OLARAK FRANCHISING

This study focuses on franchising as an international market entry method. Franchising has recently received much attention both in theory and practice. Considering the financial diffıculties of entering foreign markets, franchising stands as a good way of doing business abroad with its financial advantages to exporters.

CHANGING GLOBAL ENVIRONMENT AND CHALLENGES OF INTERNATIONAL BUSINESS

Rapid advancement of Information & Communication Technology (ICT) provides a newer shape of business. Pattern of doing business has changed into a completely different format. Concept of free market economy got its existence from the conceptual base through the advancement of online marketing facility. Countries are working to come closer through different regional blockings as well as under the multilateral trading system through the World Trade Organization (WTO)s active intervention to make international trade easier than ever. World Customs Organization (WCO) introduced HS Code system to harmonize world trade facilitate quick customs clearance. After all globalization get a momentum in last decade and many non-tariff, Para-tariff barriers are addressed and in a considerable position of solution of the problems. Countries are negotiating and committed to co-operate each others to ensure free movement of trade around the globe. As a result new issues are coming into emergence with challenge or opportunity in its two sites. Nowhere, perhaps, was it felt more keenly than in the world of international business. Political, economic, and environmental issues are increasingly becoming the remit of international business leaders as much as governments. The next generation of global business leaders, embracing the opportunities and challenges of international business. While the global marketplace becomes more interconnected and accessible, the risks involved in doing business abroad are not to be taken lightly. The aim of the research is to introduce and explain international business in an important emerging light of globalization. The paper concludes that business people and governments around the world will have to be more knowledgeable about the international dimensions of management than at any time in the past. KEYWORDS: World Customs Organization, International dimensions, Globalization, Communication Technology.

Doing business abroad: a review of selected recent Canadian case-studies on corporate accountability for foreign human rights violations

ABSTRACT While it is reported that a large part of the mining activity abroad comes from Canada, a robust regulatory framework for addressing human rights violations committed by Canadian mining companies is lacking in Canada. From Canadian and international law perspectives, this paper addresses the issue of accountability of Canadian companies who commit human rights violations while operating in foreign countries. The paper discusses reports of human rights abuses by Canadian corporations and the jurisdiction of Canadian courts in cases of alleged violations committed abroad. It analyses selected recent decisions from Canadian courts as case-studies and argues that legal reform is needed to ensure accountability of Canadian corporations operating abroad and access to civil law remedies.

Perfil del emprendedor y factores que influyen en el potencial de la internacionalización empresarial.

Trading outside the political borders of Mexico is essential in terms of macroeconomic stability in this country, through the export channel, which is currently highly integrated into the economic activity of our northern neighboring country. 79.95% of Mexican exports in 2017 went to the United States of America with a worth of US $ 327,358 million. This paper attempts to describe the contextual framework of international entrepreneurship and the importance of the entrepreneur's profile in relation to success in doing business abroad.

Institutional misalignment and cost of doing business abroad: a varieties of capitalism approach

Cost of Doing Business Abroad (CDBA) and the variety of causes leading to this phenomenon have remained an important research stream in International Business. In this paper, we set forth a new perspective on the CDBA by incorporating institutional misalignment between the home and the host country as a component of the CDBA. Through the lens of Varieties of Capitalism from political economics, we develop an integrated set of propositions to describe why and how institutional misalignment can create additional cost for multinational enterprises (MNEs). Specifically, we discuss how the differences in institutional configurations between the home and the host country create institutional misalignment. Furthermore, we theorise why institutional misalignment is inevitable as MNEs cross national borders and how this creates additional economic as well as social costs for MNEs.

Institutional misalignment and cost of doing business abroad: a Varieties of Capitalism approach

Cost of Doing Business Abroad (CDBA) and the variety of causes leading to this phenomenon have remained an important research stream in International Business. In this paper, we set forth a new perspective on the CDBA by incorporating institutional misalignment between the home and the host country as a component of the CDBA. Through the lens of Varieties of Capitalism from political economics, we develop an integrated set of propositions to describe why and how institutional misalignment can create additional cost for multinational enterprises (MNEs). Specifically, we discuss how the differences in institutional configurations between the home and the host country create institutional misalignment. Furthermore, we theorise why institutional misalignment is inevitable as MNEs cross national borders and how this creates additional economic as well as social costs for MNEs.

Changes in the start-ups business models

Research paper is summarizing results of project focus on business models and strategies of startups. The research was focused on identification of business models and strategies of startups. Research sample was creating from more than 70 startups at the beginning of the research and we finished research 3 years later with 53 startups. This research paper is partial output that analyze startups in global business environment in terms of doing business abroad and making strategic steps. The aim of paper is identify basic strategic steps and decision making of startups through selected indicators such as market presence and entry modes focusing on the last stage of research. Startups business model were also analyze and part of the output is mapping the shifts in business model Canvas of startups.

Compliance, Monitors, and the Odebrecht Case: A Comparison Between the FCPA and the Clean Company Act

Business relations have changed significantly within the last 20 years and corporations face several challenges while competing at the international level. Not rarely, doing business abroad involves corruption schemes, such as bribing a foreign public official. Aware of that, enforcement authorities around the globe increased efforts to impose sanctions on corporations and require the implementation of compliance programs. The aim of this paper is to compare how the U.S. and Brazilian authorities evaluate the efficiency of the compliance programs and compare monitorship models adopted after a settlement agreement. Also, the Odebrecht case will be analyzed considering how enforcement authorities from the U.S. and Brazil evaluated the effectiveness of its compliance program and which were the monitoring requirements adopted in each jurisdiction.

Clustering of host countries to facilitate learning between similar international construction markets

Purpose In the global construction industry, experience gained in various countries is a major source of competitive advantage. By transferring the knowledge gained in previous projects using an effective knowledge management strategy, they can increase their competitiveness by adopting best practices and by not repeating the same mistakes under similar conditions. The purpose of this paper is to demonstrate how similar countries can be clustered to facilitate learning in global markets. Design/methodology/approach Initially, country factors that can affect success in international projects and can be used to assess the similarity of markets were identified by an extensive literature review and prioritised by a web-based questionnaire. A country evaluation form was prepared to collect country-specific data to be used in the cluster analysis of 39 countries where the Turkish contractors have been frequently working since the last 45 years. Cluster analysis was performed with SPSS 23.0. Findings Three country clusters were obtained and validated. Ultimately, how obtained country clusters may be used to facilitate learning from international construction projects was demonstrated by using an illustrative example. Research limitations/implications The findings depend on the experience and perspective of Turkish contractors doing business abroad. Thus, the identified clusters are not generic. Moreover, country clusters were not identified considering only the country factors such as economy, culture, politics, etc.; thus, countries in the same cluster do not necessarily represent “similar” countries in terms of macro-factors. Clusters were identified so that the lessons learned can be effectively transferred within the same cluster considering construction and project-related factors as well as country-related factors. Although the findings cannot be generalised and clusters are not static, it is believed that the methodology used in this research is repeatable for different countries considering different timeframes. Originality/value Theoretical contributions include the identification of factors that can be used for similarity assessment of countries for transferring lessons learned as well as a methodology for clustering. Findings may also have a practical value for the Turkish contractors.

Managerial governance adaptation in the multinational enterprise: In honour of Mira Wilkins

We propose an analytical business history approach, informed by new internalisation theory, to study managerial governance adaptation in the multinational enterprise (MNE). We shed new light on the timing and the scale of managerial governance adaptation. These two issues have remained largely unaddressed in mainstream international business theory. We uncover the importance of delayed, larger-scale governance adaptation as a response to cumulative, localised commitment failures. We illustrate our new perspective on managerial governance adaptation by providing a short retrospective of Wilkins and Hill’s (American business abroad: Ford on six continents, Cambridge University Press, Cambridge, 1964) classic historical account of Ford Motor Company’s expansion across six continents between 1903 and 1963. Our brief retrospective highlights the value of in-depth historical analysis, informed by umbrella behavioural assumptions, such as those adopted in new internalisation theory-based research, to gain improved understanding of international strategy and governance trajectories of large MNEs.

EVOLUTION OF THE STATE SUPPORT SYSTEM FOR POLISH BUSINESS ABROAD

For more than two decades, the pillar of economic and trade diplomacy dominated in the system of state support for Polish business abroad. Evolutionary changes and major corrections (1999, 2006) introduced the institutional enrichment of the system, but led to its fragmentation and thus to difficulties in coordination and chronic underfunding. Since 2017, a radical rebuilding of the system has been underway, under which commercial diplomacy is being liquidated and replaced by the Polish Investment and Trade Agency with its foreign non-diplomatic trade offices. The aim of the article is to assess the process of systemic changes with the indication of breakthrough moments and to identify the paradigm shift in the approach.

Individual and job-related antecedents of a global mindset: An analysis of international business travelers’ characteristics and experiences abroad

International organizations face an increasing need for employees, such as international business travelers (IBTs), with a global mindset to successfully conduct business abroad. But we lack knowledge about levers that are conducive to IBTs’ developing a global mindset. We collected quantitative data from 624 mainly German IBTs to measure their global mindset along with theory-driven individual and job-related antecedents. Structural equation modelling revealed that individuals’ personality traits (openness to experience, agreeableness), motivation (work-related travel readiness) and job-related factors (complexity of global roles, contact quality with foreign nationals) were positively related to the IBTs’ level of global mindset. Our study contributes, first, to research on global mindset, by identifying antecedents to its development and, second, to research on international business travel, by showing how specific features of travel experiences can be managed in order to enhance IBTs’ learning experiences.

Bank relationships’ contributions to SME export performance

PurposeThe purpose of this paper is to examine to what extent, and in what ways, various types of bank support improve small and medium-sized enterprise (SME) export performance. It contributes to bank marketing and international marketing theory and practice by clarifying bank contributions to SME export performance at the firm level.Design/methodology/approachThe study method is an on-site survey, encompassing 135 manufacturing Swedish SMEs. Five hypotheses are tested using ordinary least squares regression.FindingsThe higher the export performance, the greater the importance attributed to bank funding of international business. The importance of transaction and/or currency services provided by banks for SMEs’ ability to do business abroad was confirmed, but with the important limitation that the effect diminishes as the number of markets increases. Furthermore, the results indicate that SMEs with low export performance attach a high importance to the advisory services that banks can offer regarding international business. No significant results for knowledge sharing or support from bank contacts were found.Practical implicationsSME managers are encouraged to view banks as potential providers of a diverse set of value-added resources while taking into consideration that some banks will have more developed resources and support policies than others. The study results also assist banks in building effective strategies for enhancing their relationships with SME clients, as it provides detailed information on how SMEs relate different kinds of bank services to their export performance.Originality/valueAs the first paper to describe SME-perceived relationships between different bank services and export performance, this study informs bank marketing and international marketing theory about bank contributions to SME internationalisation.

Calculating Corporate Compliance & The Foreign Corrupt Practices Act

Technology is rapidly disrupting every industry and institution around the globe. Yet, corporate compliance has remained relatively unaffected by technological change when compared to other industries. If firms continue to lag behind in their compliance efforts, their risk exposure to the potentially lethal sanctions associated with major compliance failures will continue to increase with time. This is particularly true in the context of the Foreign Corrupt Practices Act. Generally, the Foreign Corrupt Practices Act (“FCPA”) is a regulatory statute that forbids bribery and false accounting for domestic firms doing business abroad. And, in the past decade the DOJ and SEC have begun aggressively enforcing the FCPA. Firms should begin using technology to develop more robust and cost-efficient compliance programs to insulate themselves from the FCPA’s harsh penalties. This Article provides an algorithm that allows firms to evaluate and improve their compliance programs in accordance with several published sources of guidance. Compliance scholars have made clear that it is critical for firms to maintain strong corporate compliance programs and have suggested different models and frameworks for internal evaluation and auditing. However, those suggestions fail to consider how technology may be used to improve the cost-efficiency of corporate compliance and ethics programs. This Article takes an informatics-based approach to evaluating and improving firm compliance by focusing on the most important compliance functions according to the Department of Justice (“DOJ”), courts, and other Government actors. Indeed, firms may drastically improve the cost-efficiency of their compliance efforts by adopting the analytical framework proposed in this Article.

Transnational migrant entrepreneurship, gender and family business

AbstractDespite increased academic attention paid to migration flows in Europe, the gendered nature of transnational migrant entrepreneurial journeys within the context of a family business remains under‐researched. We address this gap by investigating how transnational spaces allow women to challenge dominant ideas about their roles, and to claim legitimacy by opening branches of their family business abroad. With extensive longitudinal evidence collected over a seven‐year period, we showcase four biographical narratives of women operating transnational family businesses in the UK that had originated in Eastern Europe. Adopting this novel longitudinal approach, we provide insights into how these transnational migrant women entrepreneurs exercise individual agency to overcome structural constraints by developing strategies that prioritize their own business aspirations without fully sacrificing their family ties.

Debt financing puzzle and internationalization

PurposeThis study aims to examine the relation between long-term debt and internationalization in the presence of the agency costs of debt and business risk.Design/methodology/approachSample firms consist of 517 non-financial listed firms in Malaysia, with 4,197 firm-year observations from the year 2000 to 2014. This study uses panel data regressions and a series of robustness tests to examine the hypotheses.FindingsThe results show that multinational corporations (MNCs) are more likely to sustain less long-term debt than domestic corporations (DCs) to mitigate the costs related to agency problem and firm risk. Meanwhile, foreign-based MNCs maintain less long-term debt than local-based firms, and the finding is more significant at a higher degree of internationalization. Robustness tests confirm the negative relations.Research limitations/implicationsThe findings indicate that the ongoing debate on the debt financing puzzle can be explained by internationalization. Moreover, the findings suggest that in addition to the systematic differences between MNCs and DCs, studies on the debt financing and internationalization should also account for the systematic differences among MNCs such as the local-based MNCs, foreign-based MNCs and DCs that later expand their business operations abroad.Practical implicationsMNCs have to be responsive to the diverse institutional environments as they diversify their business operations geographically. When the adverse effects of internationalization outweigh the benefits, MNCs could use the long-term debt financing decision to mitigate the costs of doing business abroad. This is because debt financing is also a primary concern in the corporate financial decisions for the maximization of shareholders’ wealth.Originality/valueThis study contributes to the debt financing literature from the international perspective by providing evidence from an emerging market. In addition, this study highlights the importance of recognizing firms by their firm-specific characteristics, such as internationalization, given the systematic differences among firms.

Introduce CRS Standards for the Automatic Exchange of Tax Information into International Practice and Improve the Legal Regime on Controlled Foreign Companies

Countering crime in taxation area is one of the crucial tasks since this type of offence encroaches upon the economic principles and the power of the state, promotes development of corruption ties and therefore is deemed to be among the most dangerous perils to the national financial security. The Tax Policy Centre of the Organization for Economic Co-operation and Development has launched a system, within the framework of the Automatic Exchange Portal, for disclosure of schemes aimed at circumventing the single standard (CRS) for automatic exchange of information on taxpayers’ accounts. The law on the place of residence (location) is applicable in terms of international private law pertaining to OECD information exchange rules. The legislation on controlled foreign companies proved to be the legislators’ response, in most of the developed countries, to minimization of taxation in offshore zones, having the purpose to prevent tax evasion through offshore companies established in jurisdictions with minimal taxation. On 27.12.2017, within the framework of the course for counteracting offshore structures and obtaining unreasonable tax benefits, certain amendments were introduced in Federal Law No. 376-ФЗ, with specification of conditions for classifying a foreign company as a controlled foreign company; setting the criteria for recognizing individuals and organizations to be controlling entities; introducing a procedure for taxation and exemption of controlled foreign company’s profit from taxation. In this regard, it is necessary to draft a number of laws aimed at development of mechanisms for return of capital to the Russian jurisdiction and regulation of legal norms intending to release business representatives from paying the 13-percent tax in the event of termination of their business abroad.

Domestic Acquisition Experience and the Internationalization of Chinese Firms: The Role of Institutional Heterogeneity

ABSTRACTThe liability of foreignness increases firm risk of doing business abroad. However, it appears not to deter Chinese firms as evidenced by their risky internationalization pattern. This study is concerned with explaining this phenomenon. Drawing on organizational learning and institutional theories, I argue that institutional heterogeneity in China gives firms an opportunity to develop routines to overcome the liability of foreignness through acquisition experience gained outside of their home provinces. Further, I propose that coastal and inland firms draw different routines from their acquisition experiences. I test these arguments on panel data of listed Chinese firms, tracing their acquisition behavior from 2006 to 2015. My analyses suggest that acquisition experience outside of home province matters and that, in the case of inland firms, coastal acquisition experience facilitates subsequent internationalization. The present study contributes to the literature on the internationalization of Chinese firms. It highlights the value of context-specific measures for Chinese management research, sheds light on the functionality of institutional heterogeneity in China, and provides evidence to re-evaluate the riskiness of Chinese firms’ internationalization pattern.

해외사업 리스크 분석을 통한 중소 조경건설업체의 베트남 진출전략에 관한 연구

The decline in the construction industry has led to a decrease the profitability of small and medium-sized landscape contractors. To relieve this situation, small and medium-sized landscape contractors have continued to proactively find ways to enter global construction markets. However, many small and medium-sized landscape contractors face risks due to their lack of capacity and insufficient preparations to extend the business abroad. Thus, this study aims to analyze the current condition of the Vietnamese construction market and the related risk factors. It then suggests strategies to improve the small and medium-sized landscape contractors