The Reasoning Behind The Regulation of International Business Behavior

THE REASONING
BEHIND THE
REGULATION OF
INTERNATIONAL
BUSINESS BEHAVIOR
What are regulations on international
business behavior?
These are rules and policies that regulate the flow of business and trading
between different countries. These regulations on firms vary substantially
among nations.
Nations may employ embargoes, boycotts, and antitrust laws to govern
business activities.
Embargo
An embargo is a government order that restricts commerce with a specified

country or the exchange of specific goods. An embargo is usually created as a
result of unfavorable political or economic circumstances between nations. It is
designed to isolate a country and create difficulties for its governing body,
forcing it to act on the issue that led to the embargo.
Example of embargo in the Philippines
Back in 2011, Bureau of Animal Industry (BAI) Director Efren Nuestro,

Thursday, said he had issued “verbal orders” banning Japanese chocolate milk
products shipped to the Philippines after the March 11 earthquake, as more
countries shunned food imports from quake-hit Japan. The Philippines banned
Japanese food imports as radioactive steam wafted anew from the crippled
Fukushima Dai-ichi Nuclear Power Station, stoking global anxiety.
Boycotts
Collective, organized, economic and social pressure by public

groups against unfair trade and employment practices,
environmentally irresponsible corporations, and oppressive
regimens.
Example of an international boycott
Air France is the only major airline that continues to ship monkeys to laboratories for
experimentation. Primates transported by Air France are frequently taken from the wild and were
transported on journeys that could last for more than 30 hours.
In October 1, 2012 the boycott started, reporting that 90 percent of drugs tested on animals
failed in human trials, making primate transportation for experimentation unnecessarily cruel. Due
to Consumer pressure, other major airlines, including United, Air China, Delta, and American
have reportedly stopped transporting primates for use in experiments. PETA was urging
consumers to boycott Air France until the company also changes its policy on transporting
primates.
“Primates in laboratories were routinely mutilated, poisoned,
deprived of food and water, forcibly immobilized in restraint devices,
infected with painful and deadly diseases, and psychologically
tormented...Primates suffer from the long and grueling transport in the
cargo holds of planes and in the backs of trucks.”
-People for the Ethical
Treatment of Animals(PETA)
Antitrust laws
Antitrust laws also referred to as competition laws, are statutes

developed by the governments to protect consumers from predatory
business practices. They ensure that fair competition exists in an
open-market economy. These laws have evolved along with the
market, vigilantly guarding against would-be monopolies and
disruptions to the productive ebb and flow of competition.
Article 186 of the Revised Penal Code:
an example of a Philippine antitrust law
As amended, sanctions: “any person who shall enter into any con- tract or agreement
or shall take part in any conspiracy or combination in the form of a trust or otherwise, in
restraint of trade or commerce or to prevent by artificial means free competition in the
market”.
What are the reasons behind these
regulations?
Dependency
Philippine debt dependency
The Philippines' outstanding debt totaled ₱7.73 trillion by end-December, 6 percent

higher than the ₱7.29-trillion level tallied in 2018. The amount also picked up from the
₱7.71-trillion debt stock recorded in November, the Treasury said in a statement.
The Philippine economy expanded by 5.9 percent last year, slower than the 6-6.5
percent goal set by the Duterte administration. The Philippines is now an ₱18.6-trillion
economy, according to the Philippine Statistics Authority.
Two-thirds, or ₱5.13 trillion, of the total outstanding loans at end-2019 was
owed to domestic investors. This is 7.3 percent higher than what was borrowed
onshore the previous year.
The rest, worth ₱2.6 trillion, was financed from foreign investors, which
likewise grew by 3.5 percent year-on-year.
The Treasury said the increase is due to new debt papers offered to investors
during the year. The peso fared better against the dollar in December 2019,
averaging ₱50.802 to $1 versus the ₱52.563 rate in December 2018.
Unwanted products and services
Control of the economy
Must control the
economy
Source:
◦ http://www.pondiuni.edu.in/storage/dde/downloads/ibiii_ibl.pdf
◦ boycott. BusinessDictionary.com. Retrieved February 16, 2020, from BusinessDictionary.com website:
http://www.businessdictionary.com/definition/boycott.html
◦ https://www.investopedia.com/ask/answers/09/antitrust-law.asp
◦ https://www.ethicalconsumer.org/ethicalcampaigns/boycotts
◦ https://globalcompliancenews.com/antitrust-and-competition/antitrust-and-competition-in-the-philippines/
◦ www.sra.gov.ph › wp-content › uploads › 2016/02 › Philippines
◦ https://www.investopedia.com/terms/e/embargo.asp
◦ https://cnnphilippines.com/business/2020/1/29/2019-government-debt.html

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THE REASONING

An embargo is a government order that restricts commerce with a specified

Back in 2011, Bureau of Animal Industry (BAI) Director Efren Nuestro,

Collective, organized, economic and social pressure by public

Antitrust laws also referred to as competition laws, are statutes

The Philippines' outstanding debt totaled ₱7.73 trillion by end-December, 6 percent

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