Your firm, Flyboy, Inc., is a successful U.S. manufacturer of aircraft. Flyboy would like to expand its market to Pamonia, a small, oil-rich kingdom that was once an Italian colony. The principal purchaser of aircraft in Pamonia is the government, although some private families have the resources

Please review the instructions for the Individual Written Assignment


Course Number: BA 560 Credits: 3SIU/12UoR Contact hours: 45

Course Title: International Business Law Level: 7

Pre-requisites: Graduate Standing

Students will prepare a paper for the course consisting of a report of 1200 words minimum, APA format with minimum 5 academic resources. This paper represents 50% of the final grade.

Please make sure the content of your paper is written in your own words to avoid plagiarism, include APA citations when quoting or paraphrasing information from outside resources, and include each reference on an APA formatted reference page. Papers have to be uploaded and run through SafeAssign on Blackboard.

In this paper, students will critically analyse the legal situation of the company chosen from the ones offered below, and write a legal consultancy report, according to the requirements stated in each case in relation to the questions asked in each situation. The instructor will talk to each student individually to ensure that the students are familiar with the content before finalization of their paper.

The assessment rubric after which you are graded can be found on your course shell.

1. Your firm, Flyboy, Inc., is a successful U.S. manufacturer of aircraft. Flyboy would like to expand its market to Pamonia, a small, oil-rich kingdom that was once an Italian colony. The principal purchaser of aircraft in Pamonia is the government, although some private families have the resources to purchase the product. The same private families are, not coincidentally, also the nobility of the Pamonian kingdom. For a new entrant like Flyboy, breaking into the market without a local representative is not possible. You are also aware that local custom includes “grease payments” and lavish gifts to customers in Pamonia.

Prepare a paper critically analyzing the pros and cons of entering the Pamonian market. Explore the legal risks inherent in the proposed investment and advise how Flyboy might avoid them.

2. You have started a small high-tech company in New York.

You are running an informational Website. Customers must call your 800 number to place an order. A customer in Alaska is very unhappy with your product. Can he or she successfully sue you in Alaska?
You decide you want to be clear in all your future dealings, so you insert a forum selection clause in all of your contracts with your customers that stipulates arbitration in New York under the rules of the American Arbitration Association. Would this be enforceable?
What if the forum selection clause stated that all disputes would be heard in Tibet?
What ramifications are there to changing your website and making it more interactive so that people can place orders there?
What if your competitor is using your trade secrets and your patents without your permission or payment? Would you be interested in arbitrating this dispute? Why?
What difference would it make if your competitor were a Dutch Company? And a Chinese Company?
The CEO has asked you to outline a comprehensive strategy to deal with these and other issues arising from customers, suppliers, groups of citizens and employees. Prepare a memo addressing major concerns and suggested actions.

3. Your firm designs, manufactures, and markets children’s toys for sale in the U.S. Almost 90% of your production is done in China. During the 1990s, U.S. relations with China improved. Even though there were many disagreements between the two countries, the United States granted normal trade status to China and supported China’s membership in the WTO in 2001. Your firm invested heavily in China during that time. You have developed close ties to Chinese suppliers and have come to depend greatly on inexpensive Chinese labor and the lower costs of doing business there.

You are now concerned about increasing political tension between China and the United States over a variety of issues: China’s s treatment of the Tibetan people, reports about the use of prison labor to manufacture goods for export, China’s population policies, and differences over relations with communist North Korea. The United States has also accused China of corporate and industrial espionage in the United States to obtain scientific, industrial, and trade secrets, and of hacking into corporate and government computer networks. There are also disagreements over China’s censorship of Internet search providers, and over the protection of U.S. intellectual property rights in China. The United States is also concerned with China’s tax policies, which are said to discriminate against imported goods, and also with China’s state subsidies to domestic industry. The U.S. accuses China of currency manipulations of the yuan, making Chinese goods unfairly cheap in foreign markets and imports into China artificially expensive. Most worrisome is the potential for conflict over Taiwan, with which the United States has had a mutual defense pact for 60 years. China claims Taiwan under its “One China” reunification policy, while accusing the United States of fostering “independence” there. Despite the issues, both countries recognize their deep economic reliance on each other. With that background, consider the following:

1. Describe the impact that a trade dispute between the U.S. and China would have on your firm.

2. Describe the impact on your firm if China were to lose its MFN trading status.

3. What strategic actions might you consider to reduce your firm’s exposure to political risk?

4. What are the current areas of agreement or disagreement between the United States and China, and how do you think they will affect future trade relations between the two countries?

5. The United States often links trade policy with a nation’s foreign policy. Do you agree with this? What do you think of U.S. trade policies toward China being linked to foreign policy issues?

6. Although both mainland China and Taiwan are “Chinese,” doing business in Taiwan differs greatly from doing business in China. Investigate and describe that difference. How do business opportunities differ on the mainland versus the island?

7. Explain the importance of sound country risk analysis in doing business abroad. What sources of information do you think you would use to evaluate your international business strategies in China?

8. Do you think it would be advantageous to visit China, and to visit your suppliers there? If so, what would you hope to accomplish in your visits?

Prepare a memo to the CEO addressing the above concerns.


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