HI5015 International Trade and Enterprise Assignment Sample
Here’s the best sample of HI5015 International Trade and Enterprise Assignment , written by the expert.
Executive Summary
The aim of this report is to develop an understanding of international trade and enterprise. To achieve this aim, Pfizer Inc is selected as the case study that is a multination company and operating in Australia. In this report, it is found that Australia has developed a legislative, regulatory framework that affects and controls the business activities of a multination company in the country. This legal regulatory framework includes various concepts such as competition law, consumer law, product liability and regulations, environment legislation, privacy law, and taxation law. Furthermore, this report also indentifies the different treaties, laws, and agreements that influence the business of Pfizer Inc. These treaties, laws, and agreements are Australia export and import law, free trade agreement, tariffs and duties, and import regulations.
Introduction
Pfizer Inc is an American based multination firm that is also operating Australia. It is a public company and listed in a number of the stock market. The main operation of the company is in producing the medicines and vaccines. The main product list of company includes Atorvastatin (trade name Lipitor), Prevnar, Norvasc, Diflucan, Zithromax, Zoloft, Lyrica etc. At the current time, the company is proving the employment to 92400 people over the global in which 11000 in Australia. However, the main headquarter of the company is in New York City, USA. The company was found in 1849 by Charles Pfizer Charles F. Erhart (Pfizer Inc, 2019).
Identify any legislative, regulatory framework/s affecting the MNC
To conduct the fair business practices in Australia with protecting the rights of the customers and sustainability of the environment, the Australian government, statement government, and community are presented. These develop the act and regulations to control the business practices in the country. The role of these entities is significant to determine the rights of the business and business owners at the time of the diverse business situations. The following information determines the legislation framework of Australia that affects the operation of Pfizer Inc in Australia.
Competition Law
Australia has adopted the national statutory framework that emphases on the fair tradition in respect of the business and customers. A company that is doing business in Australia is liable to follow the essential guidance under the competition law. Australian Competition and Consumer Commission (ACCC) have developed the competition law in Australia and continue measures the situation in which companies are operating. Pfizer Inc is also liable to follow the principles and section laws under the competition law.
The rights of the customers are protected by the government of rules and regulations as well as the state and territory laws. In each state and territory, the fair trading office is presented that provides the suggestion on the fair business practices and monitors the companies’ activities regarding this. In this, it is found that competition law creates the liabilities on Pfizer Inc in the context of fair trading activities. According to this law, the issues of fair business practices are solved in the relevant state and territory fair trading office (Australian Government , 2019).
Consumer Law
Consumer law also creates some liabilities on the companies that are operating in Australia. This law monitors the performance of a company under the rights of guarantees, lay-by agreements and penalties, product safety laws, unsolicited consumer agreements, etc. The Australian customer law is scheduled under the competition and consumer act 2010. This law was active from the 1 January 2011. After the application of this law, companies and firms in Australia have supported and contributed to protecting the rights of the customers. It is because this law includes principles and rules that protect the customers. Due to this, it is essential for Pfizer Inc to consider each aspect of this law.
This law also includes a set of legislation that determines the liabilities of the claims and damages faced by the customer after the use of the service and product of the company. This law is helpful for the customers because it provides the strength to the customer as working. Australia consumer law also suggests on the breaches of the law and regulation on which the criminal sanctions are applied (Australian Government , 2019).
Product liability regulation
In the context of the product safety and information standard Australia is very serious. It has adopted the national statutory framework to regulate product safety issues in the country. These standards are designed with the aim of present the production of harmful products. This standard is also governed by the Australian competition and consumer commission. In the same concern of competition law, the state and territory government of Australia is also involved in protecting the customers’ rights in the reference the product safety. For this, the state government and fair office work together and monitors the activities of the companies in the business environment. In this way, Pfizer Inc is also responsible for following the rules and regulation and delivering the standard products. This act also creates the liabilities of Pfizer Inc to maintain the standard of the products and services. It is because there is legal action determined if any one company finds as breaching the concept of product safety (ICLG, 2019).
Environment Legislation
It has proven that organizational activities affect the sustainability of the environment. The government of Australia and state and territory government are serious for increasing the issue of the sustainability of the situation. Due to this, the government of Australia, and state and territory government participate in administer environment protection. Under this legislation, some specific standard and regulations are developed those are essential for each organization which operating in Australia. In this way, there is a liability for Pfizer Inc to strictly follow the laws and regulations of the environment safety and projection in Australia. Australia government legislations monitor the actions of the companies in the context of the environmental responsibility and culture concern (Australian Government, 2019).
Privacy Law
In Australia legislation framework, the role of the privacy law is also significant that also determines the liabilities of a company operating in Australia. In Australia, there is privacy legislation that governed by the office of the Australian information commissioner. It defines the activities of the business that should be in the context of collecting, accessing and storing personal information and communication. This legislation creates some liabilities for Pfizer Inc in Australia. It suggests the management of Pfizer Inc the requirements of managing the sensitive information of the customers and companies (Australian Government, 2019).
Corporate tax
Australian legislation framework also includes the concept of taxation. In this, it is essential for a company to pay the taxes on the earned income. It is the legal liability of the company and company has to pay a certain percentage of the tax on the net income. At the current time, the federal tax rate is 30% on the net income. Hence, it is essential for Pfizer Inc to pay the net income to the Australian Taxation office (PWC, 2019).
Identify any treaties, conventions or agreements
Australia export and Import Laws
The government of Australia focuses on building a strong relationship with other countries. The geographic location of the country also provides an opportunity for Australia to conduct international business with other countries smoothly. In regard to this, the government of Australia has developed a lot of the policies and regulations in order to control the international business activities of the companies. In this, policies, rules and laws related to import and export are essential. But, these policies, regulations, and laws create barriers on the import and export process of Pfizer Inc. In this, the government of Australia has also developed regulations that ban the import and export of harmful and dangerous goods. However, Pfizer Inc does not involve in selling these kinds of products. But, some strict customs regulations affect smooth international trading activities. Therefore, it can be said that the government of Australia measures the provision of each industry products that are shipped from the ports of Australia (Australia Government , 2019).
Free trade agreement
Australia government is in support of increasing international trading activities. Due to this, it has developed the free trade agreement with the six counties including the USA. This agreement has been made between the government of Australia and the Government of the USA. The main aim of this agreement is to make the process of the import easy and cheap. This free trade agreement was established by 1 January 2005. The Free trade agreement between Australia and the USA provides the benefits to Pfizer Inc because under this agreement Pfizer Inc can import the goods from the USA without the barriers in the import and export process. It helps the company to reduce the import cost that minimizes the overall cost of the company (Australia Government, 2017).
Tariffs and duties
Australia is a member of the World Trade Organisation (WTO). Due to this, Australia is committed to complete the duties, standard and rules determined by WTO for the import and export process. WTO has determined some specific standard and regulations that are essential for companies in the international business process. It is because Pfizer Inc is operating in Australia; it becomes necessary for the company to respect the standard set by WTO. In this, one of the significant act says that it is essential for a company to provide the declaration of the imported goods and its quantity to Australia custom and border protection service. In this way, Pfizer Inc is also liable to declare information on imported or exported goods (WCFA, 2019).
Import Regulations
Pfizer Inc imports the goods and services from the out of Australia because it is like the business. In this, the import activities of the Pfizer Inc are affected by the import regulations in the country. The company cares about the rules and rules that are determined by the customs department of Australia and follow each standard. In this, it is found that there are numbers of the rules, regulations, duties, taxations, permits formalities, etc. those are applied to import activities of Pfizer Inc. It creates an additional burden on the company and increases the cost of the import on Pfizer Inc that improves the overall cost of the operation. According to import regulations, if any company is not able to complete these rules, regulations, and standard, then the Australian Department of Immigration and Border Protection can seize the goods of the company. Hence, it is essential for Pfizer Inc to meet with the expectation and standard determined by the Australian Department of Immigration and Border Protection in the import process.
Concussion
Based on the above discussion, it can be summarized that the role of the legislative, regulatory framework is very significant to control the business activities in the national boundaries. It protects the rights of the customer as well as it develops the concept of fair trading practices in the country.
References
Australia Government. (2017). Australia’s free trade agreements (FTAs). Retrieved from https://dfat.gov.au/trade/agreements/pages/trade-agreements.aspx
Australia Government. (2019). Importing and exporting. Retrieved from https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Australian-export-and-import-laws
Australian Government. (2019). Australian business and environment laws. Retrieved from https://www.austrade.gov.au/International/Invest/Guide-to-investing/Running-a-business/Understanding-Australian-business-regulation/Australian-business-and-environment-laws
ICLG. (2019). Australia: Product Liability 2018. Retrieved from https://iclg.com/practice-areas/product-liability-laws-and-regulations/australia
Pfizer Inc. (2019). About Us. Retrieved from https://www.pfizer.com/
PWC. (2019). Australia: Corporate – Taxes on corporate income. Retrieved from http://taxsummaries.pwc.com/ID/Australia-Corporate-Taxes-on-corporate-income
WCFA. (2019). Import Duties Payable in Australia. Retrieved from https://www.wwcf.com.au/customs/
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