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Question 3. Since there is no international police or military force to back up international law,

does it have any power? Why or why not?

- Although there is no international police or military to enforce the regulations set by

international organizations, it still has power because even when not all countries have

similar laws regarding businesses, many countries have certain agreements, and

guidelines to follow. When there is an international partnership, business deals, or trade

agreements that both parties agreed upon, certain regulations whether according to laws

or their own agreement plan and if the contract is signed the contract should still be valid

and binding and pursuable by both parties. So, as an international business it is important

to learn the local laws. There have been many attempts have been made to standardize

law among various countries. The advantage of standardization is that business flows

much better when there is a uniform set of rules. Since the world is more connected than

ever before, the worldwide agreement on a body of laws, known as harmonization, is

progressing slowly in most areas. For now, businesspeople must confront the reality of at

times widely differing legal standards.

Question 7. You are human resource manager for a U.S. company working in Saudi Arabia,

with Saudi and American employees. All U.S. companies are required to follow U.S. Equal

Employment Opportunity law. In Saudi Arabia, women usually do not work in public, and the

genders do not mix in public. How would you explain to your Saudi employees that you have to

follow U.S. law?

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- In religious law, a religious document or source is the basis of the legal system. Religious

law is followed in Iran, Saudi Arabia, Libya, and Morocco, among other countries. In

Islam, Shiriah’s law’s fundamental documents are the Qur’an and Sunnah. While some

ruling maybe developed by jurists (legal experts) guided by religious documents,

reasoning and opinion from the religious community. One aspect Shariah relevant to

international managers is the prohibition on charging interest. Instead equity partnerships

are used as a financing instrument, with the lender assuming a share in the operating risk.

Therefore, as U.S. company operating in foreign country with both foreign and domestic

employees, we must consider all employees’ rights. First of all, we must consult with the

jurists whether there can be exception to this regulation, and try to reach a common

ground, if not we must decide whether to employ all U.S. citizens, or assign all male

employees due Saudi Arabia’s regulation.

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Sources

Michael, G. (2015) International Business. McGraw-Hill Education. 1st edition

(pages 153, 163)