MGMT315 U4 IP Research Paper Example | Topics and Well Written Essays - 750 words

MGMT315 U4 IP - Research Paper Example s which every organisation must be aware of and adhere to before they can invest in a foreign country and before they can engage employees in that country. Any American company that intends to invest in a foreign country needs to keep abreast of the specific employment laws of that particular country so as to ensure that they do not get into problems with the regulatory authorities in the country. Before a company can invest in a foreign country, it is important to carry out an initial survey on the employment laws applicable in that country so as to determine how they differ from those applicable in the USA. This is important due to the fact that some employment laws may lead to a situation where the incremental operational costs exceed the benefits the company will get from operating in that country (Hennart and Larimo, 1998). Employment laws normally relate to rules and regulations governing minimum wages, maximum working hours and minimum annual leave days that an employee is entitled to. They also relate to the whether an employee is entitled to paid leave days or not. Employment laws are diverse in every country since in most cases the government of the country sets the minimum wages applicable to the employees in the country. The employment laws may also relate to the length of time that a company should keep employees on casual employment terms and the procedure to absorb them into permanent basis. American companies therefore need to familiarise themselves with laws in different countries so that they evaluate the economics of investing in a particular country (Hennart and Larimo, 1998). The management of the American company working in a global location need to analyse the political situation of the specific country so as to determine the political stability of the country. This is important in that the company will be able to evaluate the risks and return coefficients associated with investing in the country. A politically stable country provides a