Abstract
Electrocorp is an electronics company in difficulty. This company manufactures on-board computer components for automobiles. Indeed, shareholders regret the current strategic choice is to produce in the United States. The scope of work is becoming increasingly expensive. In addition, the company uses complex hydrocarbon solvents to clean chips. Some of these components are also carcinogenic. The waste must be treated specifically under U.S. law. All these factors make the cost of production has increased dramatically in the United States, while competitors have moved to reduce their production costs, sometimes even going in the country or laws is less responsive to treatment of waste and the safety of employees working with hazardous substances.
We know that to relocate cause massive layoffs, and most people will not find a new job. Most developing countries do not have laws against child labor also, and often is " normal " children to work.
Most wages are also not nearly enough to meet the needs in these countries, and this is why child labour is developed.
While this case raises a lot of moral and ethical issues, we develop only the aspect of international business law.
For this, in this case three countries have a potential interest: Mexico, Philippines and South Africa.
Although it is a question of identifying the work from the point of view of international law business, if I select the Philippines is most pertinent in the strategy that the company wants to adopt Electrocorp because it is by far the most interesting the point of view of wages cost, environmental constraints, safety of employees who are not drastic and that the local and the government is not very stingy public.
To do this from the perspective of international labor laws we will consider the following points:
- Identify risks in the country, find solutions.
- The protection of intellectual property, how in a different country.
- In what form will we settle in this country, joint ventures, partnership, subcontracting...
- Prepare a clear and detailed contract in the event of conflict resolution, which adopt, with which authority?
