The existing business involves patent technology on rocket design using the latest technology and offering competitive prices to the clients that would like a ride to space safely. It is a corporate business that has limited liabilities and separates from the legal entity of the directors. The company’s shareholders have the opportunity to control the company operations and to elect the directors for running the company (Summers 7). The rocket company proposes to start a factory in Hungary and will obtain licensing from the United States government for exportation of raw materials from the United States and the importation of finished products. The employees of the new company will be the residents of Hungary and areas that require technical expertise, employees will be exported from the United States. The existing traffic and logistics will be through air. The selection of the rocket business is that it is unique and requires high expertise in its operations (Summers 9).
Analysis of international business risks and benefits
Identifying the global market opportunity in Hungary requires finding a favorable combination of experts that will provide supportive regulations on import and export duties. Investing is essential and requires excellent outsourcing for partnerships in foreign markets. The U. S government have the role of loosening the restriction laws on licensing for the benefit of acquiring profit from Hungary (Chan, Allaudeen and Wilson 157). The opportunities present in Hungary involve the establishment of factories that will lead in the employment of Hungary citizens under labor and property rights. Directors of Rocket Company will set the procuring and wage bills as low as possible for the purpose of achieving profits for the motherland, United States. According to Summers (12), engaging in collaborative arrangements will expand the international market and attract international tourism in Hungary. Growth of business is a major business benefit the Rocket Company will gain form following the regulatory rules of consumer safety and UNCITRAL business treaties (Redfern 49).
Conducting Business in Hungary require an understanding of the civil law that explains the legal definition of contracts a visiting company expects to make with the Hungarian government. The legal relationship should exist between the U.S. Rocket Company and the legal bodies of the Hungarian government. Hungary provides freedom on the formation of legal contracts hence encouraging many companies to invest in the Hungary economy (Chan and Wilson 161). Common law allows foreign businesses to have access to government property in Hungary through the Local Public Administration Office. Business activities in Rocket Company in Hungary will get affected through employment terms that should be fixed according to Section 84/A of the Hungary business laws. Free trade between Hungary and United States will lead in the improvement of the living standards of workers, in the Rocket Company through the improvement of social welfare in both countries. The possibility of international trade facilitates the transfer of goods that would be relatively expensive upon production in United States due to logistic issues of raw materials and task force (Redfern 55).
UNCITRAL Treaties lead in double taxation of the Rocket Company. Tax competition affects both Hungary and the United States leading in the transfer of pricing. Concept of intellectual property is common in both countries leading in the patent provision of new products, procedures, machines and other improvements in the Rocket Company (Chan and Wilson 169). Trademark provision is common in Hungary and the United States leading in the provision of a common symbol, logo and design. Copyright protection leads in the originality of the finished products, in Hungary and the United States. The jurisdiction in Hungary is a multi-risk that leads many foreign companies to practice compliance rule under the umbrella of insurance management. Redfern (60) argues that errors and Omissions in business transactions are not justifiable means of winning a case in legal courts of United States. The United States cancel all the business relationships that turn sour with the aim of reducing losses in future transactions.
Conducting business in Singapore requires cooperation with Singapore’s Free Trade Agreement and financial institutions. The political environment in Singapore encourages the private business sectors in conducting business activities with ease due to a robust legal system. The government provides an incentive on the upcoming industries especially through lower corporate tax rate (Chan and Eugene 5). Geographically, Singapore is an island within the Indian Ocean and has strategic seashores and airports for the global enterprise. In terms of connectivity, Singapore flights take approximately seven hours to United States leading an increase of the global market. The competitive workforce involves employing individuals on the basis of knowledge, skills, and experience. The pricing currency of final products of Rocket Company will be in United States dollars. Legal documents from Singapore courts will be essential in the transportation of the finished products by air. Business insurance documents are also essential in coverage of all business risks in transportation, and possible liability costs (Redfern 49).
Legal and business recommendations
Legal recommendations in Rocket Company involve business development and the frequency of business work. Legal business disputes get resolved thought litigation, mediation, and arbitration. International Arbitration Act governs all the arbitral proceedings that involve international parties. Local judiciary system in Singapore makes the policies clear in order to allow intervention proceedings. The United States provides a reduction of litigation risks in business transactions (Neumann 117). Closure of business transactions leads in the offering of law choices that will help in the amicable process of solving disputes. The litigation process in business refers to the trial at legal court. Decisions of the court are final and after the judgment, the parties abide by the decision unless there is an appeal in the high court of appeal. Singapore jurisdictions lead in fast mediation processes that contribute towards business partnerships. Mediation involves a mediator that assists the parties in making an amicable settlement. Different organizations have a mandate of being a neutral party in the mediation process in the Singapore legal Act (Chan and Eugene 17).
Conclusion and application
Licensing involves use of licensee and licensor. The licensee has the role of checking the potential market of finished products of Rocket Company. The licensor enters the market with a different mode after the end of the initial license contract. According to Chan and Eugene (23), law clause choice involves the issuance of temporary permits in accordance with the business condition. Licensing authority requires businesses be under the jurisdiction of the local authority especially the international businesses such as Rocket Company. Forum clause allows the approval of temporary permits before gaining a legal license of business operation. Disputes resolution clause allows businesses apply for documents that vividly explain the situation and conditions leading in the disputes (Neumann 119).
Additional documents that handle breaches of contracts should have specificity according to international licensing section 6B. The courts do not allow auxiliary examinations, especially for international bodies unless drawn from court of appeal. Licensing procedure handles risks of loss through precondition and condition licensing procedures (Neumann 124). The insurance of finished products allows the Rocket Industry to minimize losses that may occur during freight procedures. International companies minimize the cost freight through possession of a valid license that provides a guarantee of compensation of any loss or damage during the operation period. The cancellation of license leads in difficulties of calculating the damages that may occur during the business operation period (Chan and Eugene 35).
Chan, Gary, and Eugene Kheng Boon Tan. “Introduction to the Singapore Legal System.”
(2004): 3-51. Print.
Chan, Kalok, Allaudeen Hameed, and Wilson Tong. “Profitability Of Momentum Strategies In
The International Equity Markets.” Journal of Financial and Quantitative Analysis 35.02 (2000): 153-172. Print.
Neumann, László. “Decentralised Collective Bargaining in Hungary.” International Journal of
Comparative Labour Law and Industrial Relations 16.2 (2000): 113-128. Print.
Redfern, Alan. Law And Practice Of International Commercial Arbitration. New York: Sweet &
Maxwell, 2004. Print.
Summers, Lawrence H. “International Financial Crises: Causes, Prevention, And Cures.”
American Economic Review (2000): 1-16. Print.
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