Discussion--Political and Legal Environment Essay

Discussion--Political and Legal Environment - Essay Example A strong legal framework is necessary to protect the intellectual property of businesses. In places such as China companies are subject to theft of intellectual property due to piracy and counterfeit products. The political environment of a country is as important as the economic environment. It is hard for companies to negotiate incentives and governmental help in places were the governments do not have good relations with corporations. â€Å"The political environment is a key component of the business environment that dictates greatly on the success of your home business† (Bluntpolitics). The regulations of governments can impose barriers that increase the cost of doing business in a country. In the United States the tough environmental regulations are forcing companies in certain industries to leave the country in search for locations with more relax environmental regulations. Labor laws also influence the profitability of a company. Countries with low minimum wages are att ractive for companies that have labor intensive operations. The moral conduct of a country affects the operations of a corporation. In many parts of the world bribing a governmental official is part of doing business. I am completely opposed to bribing others. Bribes are an unethical event that should always be avoided at all costs. Whenever a company gives a bribe to another person or governmental official they will enter into an unpleasant arrangement that could backfire because the person that bribes them might continue to pressure the company for more money. The sub-Saharan African region is the place with the greatest incidence of bribery worldwide (Google). Companies must also protect their intellectual property whenever they are going business outside the United States. It takes a lot of money in research and development to create new products. In the pharmaceutical industry companies spend an average of $359 million to develop a new drug (Ca-biomed). I fully support