Companies have opted to take their business into different countries globally so that they can expand their territories. In so doing, they stand a chance of realizing good profits since they will gain good market positioning. Ford Motor Company (FMC) is one of those companies. FMC is a multinational company that is based in America. It is a producer of goods. The company is widely known as a chief manufacturer of automobiles that bear the brand name “Ford” (Daniels Fund Ethics Initiative, 2012) . FMC has established manufacturing industries in many parts of the world. However, this paper shall only consider three countries from different continents where the company has placed its production plants.
The three countries under consideration are United States, India, and South Africa. These countries are members of the IMF, WTO, and the World Bank. They are disciplined in that they follow the regulations and guidelines as stipulated by these international institutions. Most of these countries promote International Corporation through trade. They all actively indulge in open trading system adhering to the multilateral laws. In addition, they have a judiciary system that is strongly rooted in the constitution of their respective countries. The laws of these countries recognize the intellectual property rights as WTO advocates for it. Production of counter freight products is thus one of the conducts that are deemed unconstitutional.
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As mentioned earlier FMC is a producer of goods. One of the challenges that this product faces in the market are non-tariff related. For instance, in U.S., FMC faces the challenge of ensuring that it manufactures automobiles that consume less fuel and produce less carbon to the atmosphere according to the clean air act (CAA) of 1970/1977. In addition, there is the 1966 Safety Act, which prohibits the sale of new automobiles that do not adhere to the safety standards set by NHTSA. Nevertheless, the company is a member of many trade blocs such as European Common Market, NAFTA, and ASEAN. Through these trading blocs, FMC is able to gain a bigger access to the market and import raw materials at an affordable price from member countries. Since FMC export most of its product, it would be imperative for the company to stick with WTO. This is because WTO guarantees a conducive business environment globally.
Apparently, corruption poses a significant challenge to businesses in India and South Africa. In South Africa, the control of corruption stand at 44% and transparency is rated at 91% (Transparency International, 2016). However, the judicial system has helped in curbing such malpractices. The U.S is tagged as a corruption free country. Nonetheless, cases of corruption may still exist but may go unnoticed. Corruption control in the U.S. stands at 97%. The transparency of the U.S has a score of 56%. The Indian economy is adversely affected by corruption. Transparency international (2016), showed that most Indians have good experience in paying bribes to access goods and services. The control of corruption stands at 36% and the country has a transparency score of 67% (Transparency International, 2016).
Suppose one is to visit a foreign country to negotiate on behalf of FMC, etiquette would be paramount. Secondly, it would be necessary for the individual to understand the communication culture and the structure of the authority of that country. Thirdly, the negotiator would need to familiarize him/her with a few common phrases from the country he/she intends to visit. The internet can be essential in such instances. Therefore, websites such as ediplomat.com will be important during preparation. Finally, the negotiator can visit the Chambers of Commerce or business organizations that work cordially with that country for more information about the country.
References
International Monetary Fund (IMF). (2016). List of members . Retrieved from https://www.imf.org/external/np/sec/memdir/memdate.htm .
The World Bank. (2016). Member Countries . Retrieved from http://www.worldbank.org/en/about/leadership/members.
World Trade Organization. (2016). Members and Observers. World Trade Organization . Retrieved from https://www.wto.org/english/thewto_e/whatis_e/tif_e/org6_e.htm.
Transparency International. (2016). Corruption by Territory/Country . Retrieved from http://www.transparency.org/country#IND.
Daniels Fund Ethics Initiative (2012). Ford Motor Company Manages Ethics and Social Responsibility. University of New Mexico: Daniels Fund Ethics Initiative. Retrieved from http://danielsethics.mgt.unm.edu .
