International Partnership in Business

International partnership continues to remain a relevant area of concern for many corporations. The performance and the going concern of a business in foreign countries are contingent on the corporation’s compliance with the international laws governing business practices. Legal and political aspects of the business environment impact the foreign businesses and thus the degree of partnership. Countries have stipulated rules regarding investments and ownership of property as well as legal restrictions on partnerships. 

The environment where businesses operate are increasingly becoming complex with the emerging technology and internationalization. And as such strategic alliances are need by many organizations to overcome the dynamics of business practices. Generally businesses and countries form alliances to achieve objectives which are of mutual benefits. Organizations and countries may share resources, information and capabilities in order to succeed. Legal restrictions on international partnership are not entirely bad. They are meant to control harmful businesses and alliances between countries and thus prevent illegal business practices from happening. It is also important for purposes of responsibility and accountability on the parts of the partners. Legal restrictions may not allow foreign investors to purchase businesses outright. This critically is not bad. It’s an attempt to prevent repatriation and appropriation of returns from investment to other foreign countries without following the right procedure. It is meant to make the local economy vibrant and to facilitate growth in terms of GDP. There are several international paring which have failed to due to political, economic and legal restrictions. However, the strategic alliance between Kenya and Tanzania has been successful. This is attributed due to favorable foreign investment policies. The government of Kenya prioritizes investment retention and the same time maintains dialogue with foreign investors.