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Posted: March 3rd, 2020
When we think about what we slowly call "international issues" in business and we're actually talking about this critical duality. It's the desire of trade to satisfy human wants and in this manner to bring different peoples and cultures together. And it's the profession of government to create rules that keep things from running off the rails. Perner, in his article mentioned that there are different legal system survive in different countries today.
Some countries, the legal system are based on the common law like English speaking world; some are based entirely on statutory law like France and Germany, while many counties’ legal system Perner said are based to a large extent on religious law. He points out that in some countries one of their serious problem is a inadequate access to the legal system. The pressures of globalization frequently work to break down barriers between nations, which is all to the good.
But growing investment among nations also makes it more complicated for those in different cultures to understand the rules of the road. And it makes it easier for the dishonest to take advantage of the seams in legal systems and enforcement among different nations. That's creating a growing need for governments and regulators around the world to harmonize our differing sets of rulebooks. Each of us knows that a common language promotes communication and understanding — not just in our personal lives, but in international business transactions, as well.
Markets, which blossom on information, are really just aggregations of people, who of course communicate better and more competently if they speak the same language. One of the big contributions that the world of business and commerce has made to global peace and understanding is that it has continually worked to establish smoother, faster, and better means of communication across cultures and national boundaries. By breaking down barriers between nations, regions, and social classes, trading and markets have advanced the cause of civilization.
That's why it's so significant, in order to help investors make sense of this spectacularly different world of global investing, that every nation do everything within their power to guarantee that business report information as well as legal system are similar and dependable. But although technology can do a great deal to develop life for investors, there will always be a need for human regulators to even the rough edges of international regulatory problems.
As an alternative of competitors, the world's securities regulators have got to see one another as partners, working together for the good of investors to ensure the sound regulation of efficient global markets. According to Hiray, it is completely different doing business in home country than internationally. While doing business in other countries, Hiray reminds business people that they have to well aware of country’s culture, people’s behavior, country’s legal system, its political environment and economical conditions.
He emphasized on how significantly important to international businesses the legal system of a country. Because it can affect the attractiveness of a country as market or investment site if there’s differences in legal systems. Hiray explained that the law of the country is regulate business practices, defines business policies, rights and obligations involved in business transactions and the government of a country defines the legal framework within which firms do businesses. Therefore laws differ from country to country.
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