International Pairing

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International Pairing Student’s Name Institution Various legal restrictions govern international business parings and alliances. These are however usually important as there is a need to safeguard the interests of both parties to prevent the exploitation or scamming of one organization by another. Without such regulations, it would be impossible to check on the actions of one business against another leading to losses and business failure. These regulations also play a significant role in ensuring the protection of local industries. Many local companies may not be in a position to compete against the financial muscle associated with foreign, international firms. With foreign direct investment outlawed, many may choose to fund local firms with the assurance of profit sharing which may lead to the death of many local companies. Some of the regulations include anti-trust regulations which focus on issues such as exclusivity, retail price maintenance, full-line forcing, and lying. They seek to minimize restraints of trade (Abell, 2010). Foreign trade and investment restrictions, on the other hand, seek to control the entry of foreign firms that navigate through the hurdles placed on direct foreign investment. They are usually common in countries wishing to redistribute wealth or those with a protectionist economy such as Russia, Malaysia, Indonesia and China (Abell, 2010). Finally, pure franchise regulations seek to prevent an abusive relationship between the franchisee and the franchisor by focusing on areas such as pre-contractual disclosure. One company that has effectively established successful international partnerships to further its growth and expansion

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