Legal Aspects International Business and Enterprise

Question: Discuss about the Legal Aspects for International Business and Enterprise. Answer: Introduction Tata is a global team with its operations in more than 150 countries and the company achieves 68 percent of the market share when the goods and services are offered in different countries. Being a multinational company there are many hindrances and regulatory framework that can be examined to achieve the customer satisfaction and thereby provide a value addition service in different sectors. The company serves as a global leader in different areas and sectors that have a larger consideration. Operations in different countries have a particular framework that has to be observed and the treaties and agreements in Australia need to be considered for a multinational if the operations are specifically focused (Kirchner, 2012). The agreements and treaties affect the companys development and even an economic development while considering the FDI inflows in Australia. Overview of the company The Tata group has a global span of business all over since years and it operates in more than 100 countries and almost in six different continents. There are international approaches that are felt with the inception period since the founder of the company Jamshed Tata had begun and established the career in England and China as international trade getting approached with the new possibilities and interception (Bernanke, 2005). There were international standards that were measured in each country and these made an impact to the world class technology with a new aspect of Exports and Imports which was set up in the year 1963. Industry of the company The company operates in the overall roster that has the products and services with its interactive brands and showcases the operations in Australia. Since, it is operating in Australia for about more than 30 years, the company has made some mergers and acquisitions that are observed with an intense since the year 2000 (Rosen and Hanemann, 2011). There are wide range of services and products that are delivered accordingly and this seems a wide variety considering the automobile and other FMGC products over last years. The main operations are for Agrochemicals that are well accepted in Australia. Since, the company operates for automobile and services it delivers the best products that are categorized accordingly. The chemicals, consumer products, construction equipment, defense and aerospace and industrial infrastructure there is a wide area of operation for the company. Number of staff in Australia and globally The global company has presence in more than 150 countries and there are more than 600,000 employees working towards for the success of the company for more than 100 countries in the world. The staff consists of research and development department, human resource department, experts and managerial level positions that is handled over by the company in Australia (Subramanian and Kessler, 2013). The reward system are allocated as per the skills and expertise level that is being determined at a higher level while considering the merit and other basis. The number of staff in Australia is more than 2000 employees that have made a pace and an additional structure that help for the success and growth of the company. Location of global headquarters The location of the headquarters is in Mumbai with its wide area of operations that the company provides for the conglomerate holding with the international recognition and global companies. There are several subsidiaries that are detailed with some associated groups that Tata has merged with. The mergers and acquisitions took place from the year 2000 and thereby there were products and services that gained a high amount of recognition in the world (ITS Global, 2008). Regulatory framework in Australia for Tata There are regulatory frameworks that affect the multinational company in Australia, these are well understood by the company and it seems that those standards and foreign policies must be examined while Foreign Investment Regulation has a particular overview that it offers to the companies that are operating in Australia. The regulatory framework that matters for the other company to operate in Australia is the FDI that states the investment which is actually undertaken by the Australian government from an enterprise which is operating in Australia. There is about an equity of 10 percent of share that is merely taken as a recognized threshold by the foreign investment and these are merely classified as portfolio investment (Truman, 2008). For Australian process of FDI screening, 15 percent threshold is important that is a critical investment for Australias economic development. According to McKinsey and Company (2016) foreign direct investment has a vital role in the regulatory framework for economic development of Australia. The history is examined that domestic investment has exceeded when compared to the domestic saving. The foreign capital inflows has enlarged and are essential for the new capital formation that would help to increase the productivity and even per capita income of the country. The emerging market has been growing with the reflected importance and the performance as compared to other economies, so there are regulations and rules when a multinational company operates in Australia. Tata with its market share has some regulatory frameworks that are considered with the peak match for FDI (Larum, 2011). There are some trends that are considered for the development of the company and these are classified with an increase in the competition and this may be an advantage for the global FDI inflows. As per Monti (2010) Tata company has faced some difficulties to operate in the market and have a competitive advantage that can be undergone with the foreign collaborations and an international logistic supply chain. There were joint ventures by other company to operate in the international market with an international business that engages some laws and practices as per the professional programmes paper that assisted the standards and emphasize in the applications and proceses for the case laws in business operation. These issues were already examined as the regulatory framework has a wide area where FDI and FTP policy are broader aspects that are considered in the company. these have been discussed by viewing the international trade bodies that are likely examined by WTO and are mainly discussed in detail with these practices and procedures (Golub, 2003). Therefore, Tata has even faced some regulatory framework that affects the operations of the multinational company. Treaties conventions and agreements that impact an MNC TATA has a huge significance in its home county but in Australia, due to the trade policies, the company has to face several issues related to trade and international policies. Also is has to be noted that the car manufacturing companies in Australia are in numerous quantities. That is, there is a huge competition for car companies in Australia which makes it difficult for TATA to sustain in the Australian market. The Australian market has a good number of domestic as well international companies. The Japan, china, Europe, America based companies have a good market share in the Australian market. It is thus very important and hard for the company to maintain its significant market share (Taylor et al, 2012). Also the Australian government has some strict policies regarding the environmental and sustainability aspects. Thus the company had to take care of the environmental issues and follows the policies regarding the environmental conditions. If Tata wants to globalize in various countries, the company needs to follow the policies of that country strictly. The company has followed the small scale vehicles and commercial vehicles and has left itself open for the emerging industries. Also the rise in the prices in the global economy is a huge concern for the company (Todaro Smith, 2011). The cost of steel and aluminum are getting high due to which the company faces a lot of issues on the production department. In Australia, there no more steel and aluminum companies which can supply these raw materials to the company in cheap and affordable prices. Due to the company has to get the raw materials and the steel imported from various other countries where the steel is available in affordable prices (Anca, 2010). The company has several issues regarding transportation and logistics and the supply of the raw materials. The company imports numerous raw materials for the manufacturing of products. The shipping and logistics charges are quite high. Due to the increase in the prices of petrol and diesel the globalization has effected in a greater extend as the logistics have been increasing their charges and the companiea have to face the growth this rise in the fuel prices. This makes the companies bear hig fuel prices and high logistics along with the raised raw materials which affects the company at a greater extend (Kekeocha, 2011). Also the deisng of TATA motors are based on the Italiand and Indian countries which are generally not much used in the Australian market. The company has to hire the professional designers to design exclusive cars and vehicles as per the needs of the Australian citizens. The company has adopted a structure of analyzing the demographics and behavior of the customers in different countries. Thus the company identifies and identifyies the needs and requirements of the Australian customers and the design the productrs as per the needs. The separate department has to be allocated to the company for designing products for Australia. TATA has several divisions in Australia and has a proven significance of over 30 years in this country. Due to the liberal and strong trade relations of Australia and India, the company does not face issues in trading and exporting the materials (Anca, 2010). The company has several departments like the TATA communications, TATA steel, TATA motors etc which has been developed in Australia and has occupied quite a significant share in the market (Andrea, 2011). The trade relations between both these countries have developed due to the emergence of many companies of India that established in Australia and vice versa. There are some free trade agreements which are obeyed by the other countries needing to do business in the Australian market. Thus there are no legal issues which hinder the trade relations with the Australian industries. Tata is also a huge provider of IT services in the Australian markets and the Australian market is quite high inters of IT services. Thus the services of TATA in the Australian market are quite demanding and successful (Anca, 2010). The company has emerged its IT sector in New Zealand an Australia by considering the growth and development of the IT sector in the Australian market. Due to the rise of small and multinational companies in Australia, TATA has identified the need of IT services in Australia and has developed a huge platform over there which provides IT services to numerous companies (Moore David, 2009). There is a huge completion in the Australian market and the greatest benefit for TATA is the competitive advantage achieved from other companies. Due to the competitiveness among companies, each and every concerned body is benefited. The companies constantly try to develop strategies which are not developed by other companies and try to pvoide the customers with the desired products. Due to this, the company as well the customers both is benefited. The company competes with itself and develops while emerging with new and unique products. Also the country gets benefited due to the employment the compa ny brings to the country (Anca, 2010). Conclusion Recommendations Multinational companies that are operated in Australia have a challenge and a risk that need to be faced to operate while describing the regulatory framework and the the affects of the operations that are globally considered. Tata as a multinational company has wide operations all over the world with around more than 100 countries. Since globalization has felt the need to operate in other countries, it is necessary to know the regulatory frameworks for different countries at the time of operation. The FDI and the domestic market operations were considered at the time of economic development. There are some treaties that impact to the development of the multinational company for the products and services that are operated in Australia. 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