international business environment Legal considerations

Topics: Law, Common law, Property Pages: 7 (1204 words) Published: April 20, 2014
Legal considerations

The legal aspects are important for the business choice. Laws are different in every country. Laws would regulate business practice, define the manner and set down the rights and obligations. This made business have to run within the border set by law and definitely affects the efficiency and profitability when running business in that country. The type of legal system.

The legal system in Spain and Korea is based on civil law, while court precedents are not granted official status as law. The Spanish legal system is based on comprehensive legal codes and laws rooted in Roman law, as opposed to common law, which is based on precedent court rulings.  Because Japan occupied Korea from 1910 to 1945, the Korean legal system resembles the Japanese system. After the occupation however, there were attempts to adopt many aspects of the American legal system. It must be remembered that the first civilian government commenced only in 1992, and thereafter, increasingly more democratic reforms have taken place.1 Both countries use contracts and they are important for doing business in both countries. Neither Korea or Spain has advantage to the type of legal system. The protection of property right

The definition of property right: In economics, property usually refers to ownership (rights to the proceeds of output generated) and control over the use of the means of production. They may be owned privately, by the state, by those who use it, or held in common by society.2 The world property right index 2012 shows the differences between the countries and the country’s world ranking. South Korea and Spain are both in the top 40 of the index. Spain ended this year on the 35th place and South Korea on the 40th place. The overall score off all the points together we can say that Spain compared with Korea is better in protection of property rights. In the figure on the next page we compare South Korea with Spain. The higher the score the better protection of property right. Property right is important for running a business because the better protect the better is the stability of the company.

Overall score South Korea vs. Spain in the international world index 2012

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The protection of intellectual property

Intellectual property is a juridical concept which refers to creations of the mind for which exclusive rights are recognized. Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets, such as musical, literary, and artistic works; discoveries and inventions; and words, phrases, symbols, and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial design rights and in some jurisdictions trade secrets. 4 South Korea has an government organization called KIPO. This is the governmental authority in charge of intellectual property in Korea. The mission of KIPO is to help Korea become an advanced country by providing legal and institutional administration for the creation and utilization of highly creative, value-added intellectual property and by promoting technological innovation and industrial development. In Spain the main law regulating intellectual property protection is the 1996 Intellectual Property Law. With regard to industrial property, no single law covers all aspects. Instead, this is regulated by a package of different laws, including the Patent Law, trade mark law and the law on the legal protection of industrial designs5 In the international property right index, South Korea and Spain score exactly the same and ends on the 27th place. There are 130 countries in the index so the both are trustful countries. Corruption

A country where corruption is low is a really important factor to choose for a country. Corruption costs a lot of money and affects the company negative. Korea has an independent commission against Corruption. The Korea Independent...


References: http://en.wikipedia.org/wiki/Judiciary_of_Spain
http://www.korealaw.com/sub/information/boardView.asp?brdId=overview&brdIdx=1&gotopage=1&search=&search_string=
http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Korea-South-WORKING-CONDITIONS.html
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