About international business

The development of technology and other favorable elements have made the world a single village market, and as a result, international trade has taken off like a wildfire. However, many persons have been prosecuted for operating in violation of the law and regulations while engaging in this activity. The reality is that every foreign company transaction involves a contract or agreement between two or more employees who agree to collaborate. One must exercise extreme caution while dealing with the legal aspects of these businesses before signing a contract. This article aims to examine and analyze some of the international regulations governing the textile industry that a business owner should be aware of before entering initiating agreement to trade or run a business on some specific countries. The document focused on textile regulation in India, china, Canada, and France. The article elaborates these laws comprehensively while making suggestions on what an entrepreneur should do while in a certain country. These regulation guides production, purchase, designing and sale the finished product in textile industry.

Introduction

International business is quite challenging. An entrepreneur must know that international trade is not a bed of roses. It involves international laws, rules, and regulation that they must adhere to for smooth operation of the business. It includes international contracts that must be carefully signed to ensure that there are no dubious deals (Kant, 2012).International dealings involve risks both to business and business owners’ potential of gathering enough profits.

The International agreement or contract is another form of describing an international trade. It has an objective which is business oriented, and commitment for all the parties involve, and the agreed upon terms or rules which govern the transactions between the two sides. An entrepreneur must know that there are international laws that govern business in each country. It means that before signing any international contracts, law abiding entrepreneur should assess the rules and adhere to them to avoid any risks. An example of such legislation is under United Nations Convention on the contracts for international sales of goods. This body governs all the international sales. In this case, the textile industry is not an exemption (Aoudj et al., 2010).

The textile industry is one of the most important industries in the world. Many countries such as France, India and the United State of America are all known for the production of cotton fabric which is used to manufacture garments and many others. Textile or rather fabrics have international regulations an entrepreneur must have knowledge on in each and every country. The EU legislations on fibers names and labeling ensure that the consumers are protected while using these products to avoid unnecessary risks (Telke et al 2010).

Purchasing fabric in India

India is known to be a civilized country since 5000 years ago (Türgay et al., 2011). Economically, India has passed through hurdles but recently has emerged as one the most powerfully countries in the world. For any business entrepreneurs who wish to enter into a contract to purchase items from this country, several facts must be acclimatized with before the deal is signed to avoid unnecessary pitfalls with any company. There are some peripheral issues about India that an entrepreneur should know. Firstly, the culture of the India; an entrepreneur should be aware the culture of this country. This may be inclusive of the language, religion, wealth, economic stability custom and many others. India has almost eighteen languages, but the business language is English. Secondly, the entrepreneur must have knowledge on the legal environment of India. This will help in knowing ethically oriented producers of fabrics. The entrepreneur should know who make rules and especially the business laws. The legal environment in India is a composition of the courts, judiciaries and the bar. These are the lawmakers. Alternatively, the entrepreneur must be well acclimatized with the rules and the procedures guiding textile industry in India (Türgay et al., 2011).

The Indian textile industry is one of the largest textile-producing industries in the world. Being one the word best, textile industries in India is highly regulated by the government. Numerous policies concerning the purchase and export of textile are formulated by the ministry of textile in India (Wu et al 2012). These laws can help entrepreneur choose wisely a law abiding producers to make a deal with for purchase of fabrics. Firstly, there are national textile or fabric policies formulated with an intention to develop and nature the industry to enhance its competitiveness in the global textile industry. The plan also aims at ensuring that quality in this industry is improved as well as encouraging foreign investment in this industry. Alternatively, the policy ensures that quality of fiber production is enhanced, maintaining the leading position in the international markets and lastly improve access to these materials by the purchasers (de Abreu 2012).

The entrepreneur must know the international or the thrust areas of the government interest in this industry. The government in India promote textile and fabric industries to enhance innovation in the market, diversity, quality awareness, intensify raw materials, increase effort in production and so on. The entrepreneur must know the acts governing the fabric and textile industry in India. The following are some the act the entrepreneur should have knowledge on; there is central silk act of 1948 which governs the silk production and any related activity in India. Alternatively, there is the textile committee act of 1963. This committee is responsible for supervising and controlling all the activity including the purchase of the fabric of garments in India. There is also the cotton control order of 1986. This too is a body which has power over the cotton fabric production, purchase and export to other countries. There is the textile undertaking of 1995. Body formed to ensure that the industry is competitive in the global market. Alternatively, the customer must have knowledge on the textile regulation and clothing (Luo et al 2010). India is also under international textile regulation and entrepreneur must ensure that the producer of fabric standardized by this law before signing the contact. These rules are documented in the next section of the article.

Textile and clothing legislation

This is a regulation developed to make sure that all the players in the textile industries know their rights and authorities and obligations while taking part in the business. The legislation has following elements. Firstly, there are requirements for application of the fibers name whether new or old. The legislation also underlines the weighted combination of the fabric products. These include the combination that should purchase or produced. Finally, the law examines the implementation as well as report on the clause, review, and studies on the adverse effects of the fabric produced and purchased by both the industry and the customers.

The entrepreneur must know that he/she is required to buy only the labeled fabric by this regulation. The Fabric must be marked whenever they are available in the market. They should know that the indication of the fiber composition of the product must be known. With this knowledge, he/she must ensure that products are labeled before signing contract (Tsoi, 2010).

Alternatively, this law regulates the product or the fabric safety in India and any place in the world. Under this law, the consumers are protected from purchasing hazardous materials and many others. Under this acts, there are legislations such as horizontal community legislation which has an obligation to ensure that the consumers are protected from harmful fibers. This act must well know by the entrepreneur to make sure that while signing a contract to purchase any fabric material, the safety of all the material are given consideration to avoid any legal cases. The entrepreneur should ensure that the safety of the raw material is given number one priority basing on the aspects of the consumers while shipping, purchasing and manufacturing the furnished product as well as selling them. The children are very vulnerable. Their products that are used to make the children’s clothes must be thoroughly assessed for safety during the purchase (Tsoi, 2010).

Lastly, the before signing a contract, the customer must consider transportation regulation in china. First, the government of china imposes tax on all the goods leaving the country. During transportation, the goods must be inspected as they leave the country. This is very paramount for the entrepreneur. The entrepreneur should custom duty regulation. The Indian custom duty is not cheap. The entrepreneur needs to contact the Central Board of Excise and customs in India before signing a deal to ship the goods. This is the body that regulates all shipment leaving and entering India.

Manufacturing and designed in China

Textile business in China is quite different from that in India. This one of the fact that the entrepreneur should bear in mind before shipping the textile or rather fabric materials to China and signing a contract with any company to manufacture and design them. The entrepreneurs dream to have smooth operation and to accumulate more profit. In the bid to achieve these ambitions, they should be careful to ensure that nay company given contract in china to manufacture textile products.

Firstly, the textile and any related product placed in the China market undergoes some regulations expressed through mandatory national standards as well as professional standard. These are done to ensure quality and safety of any exported textile and its products are under check. Under these regularities, there are a significant number of voluntary standards which also ensures that the safety, quality, and ethics in this industry are enhanced. These are important regulation the entrepreneur should have to help them select ethically oriented manufacturing and design company to sign a deal with. The entrepreneur must have in mind that the regulation guiding the manufacturing of the textile product in China are similar to the one of Europeans approach for quality, safety and labeling. For this reasons, the entrepreneur must ensure that the product being shipped to China are well labeled according to EU standards. The quality of the product is measured and EU safety rules adhered to. Having in mind this fact, it can act as criteria for selecting an ethically oriented company to deal with. This will help them ensue that the company they give contract adheres to both regulations.

The entrepreneur must also know that Chinese textile manufacturing standards are covered by number of specific standards that must be adhered to. These standards include professional FZ stands. The FZ are voluntary standards set out to check on the quality conformity of the all textile and associated products that enters the country before manufacturing. An example of this standard is GB 18401 standards which stand for national general safety technical code for the textile and associated materials (Harpur, 2011). This is very important as the company or manufacture to be entrusted must adhere to this standards.

. Shipments from china

The entrepreneur should be wear of the following before signing a contract to ship product out of China. First is the general custom administration rule no 19, 2016 which guides any products being shipped out of the country. This regulation has a new clearance system and any related matter to the shipment (Luz, 2007). Any person given this contract must be under this body.

Garment sales Regulation in Canada

Canada is one of the well-known countries for production and market for textile manufactured products such as garments. Based on their population, the market is readily available. The country has well-formulated policies and regulations that govern commercial exchange both local and international. For the smooth running of the business, the entrepreneur must have knowledge on some of these laws which enable them to evade legal cost (Luz, 2007). The first rules is the Competition Bureau, this provide advice on the mandatory labeling of the entire textile manufactured products. Children’s clothes included. Secondly, there is Health Canada which ensures that the entire commodity shipped into the country is safe. The department of law works in close collaboration with the federal departments, agencies and healthcare stakeholders to ensure that safety of all products entering the country is safe for the public. This includes all the garments and many other products. The third body that regulates products entering Canada is the Canadian General Standard Board. This organization assesses whether the goods and product which enter Canada conform to the set standards. It verifies the registration of the outputs, certifications of the commodity, procurement, health safety, standards and many others. The same body has specialized agencies that are in charge of inspecting clothes. The main clothes the body gives attention the protecting garments, the medical gloves, carpets, and underlay. At this point, children’s clothes are also under scrutiny.

Garment sales Regulation in the USA

The United state of America is one of the largest countries which offer vast markets for several manufactured goods in the world. The USA has one the world largest population which provides a market for garments and other manufactured goods. Like any other country, the united state of America has laws that regulate any product entering or leaving the country. For clothing or textile related product, the key things the federal governing bodies check is quality and safety to the consumers. These are done to ensure that all the goods which are used by the USA citizens are safe and conform to the standards. The countries have wool labeling act which ensures that all product made from wool conform to standard, safe and quality. The country has clothing captioning. This ensures that all clothes that enter the country are all labeled with a lot of care. The labeling is very paramount since it helps the consumer’s while shopping for the clothes. The entrepreneurs must know that labeling is critical for the customers as preferences vary. Some users prefer the economy of washable garments, dry cleaning and much more.

The rule covers manufacturer and importers of textile wearing apparel, and any organization that controls productions or manufacturing. The law covers the following, children’s garments, shoes, gloves hats and much more. The law requires the Entrepreneur to label clothes before they are sold. Importers must ensure that tags and attached to them before they are sold in the USA markets. Lastly, the law requires that all the clothes or any other products have cautioned label on them. This is done to ensure that consumers have knowledge of the products they buy (Luz, 2007).

Garment sales Regulation in France

Like USA, CHINA and India, this country too have regulations that an entrepreneur operating or sighing contract to operate within its boundaries must adhere to. France has good market strength. The market strength for clothing and other textile manufactured products are attributed to their standard that all entrepreneurs are made aware of before entering the market. One of the regulations that must be known to entrepreneur in France is the degree no. 2008-602 which was introduced by the government on 25th June 2008. This code deal with any issue to do with waste coming from textile products such as clothes, shoes, households and many others. This code ensures that the producer or the entrepreneur considers waste management while doing business in France (Clark, 2011).

Who is affected under this regulation? This code affect any company which produces any textile related products such clothes, fabrics, shoes and many more. The law affect those entrepreneurs who brings in new products or their finished textile products or any related to linen, shoes, household cloths and many others for the first time in France. In this case, all foreign traders whether online or physical are all considered in this law. This is very important for the entrepreneur before signing a contract to trade in France.

Conclusion

As discussed in this article, international business is made more difficult when international contracts are sighed. International deals involving contract are very tricky and have a lot of hurdles especially legal challenges that an entrepreneur must have knowledge on in order to successfully carry out a multinational business. In this case, the entrepreneur must know the kind of legislations in India dealing with any contract on purchase of the fabric or textiles. As law abiding entrepreneur, they have to have knowledge on the taxation or shipment procedures used by then India before the products are shipped to china. Alternatively, they have to adhere to the manufacturing laws in china, packaging and other process in this country. In this country, unique laws govern goods entering the country and this must be known to the entrepreneur In Canada, USA and France, the entrepreneur must be aware of the rules on the finished product entering these markets. The taxations, the regulations and all manner of legal regularities in these markets must be given consideration.

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