issues in the international legal business environment

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The major goal of these articles is to explain the challenges in the global legal business environment that any entrepreneur with the intention of operating a global firm should be aware of in order to improve the likelihood of successful operations. The significance of international commerce is introduced in the essay. As an alternative, it looks at how the textile industries are regulated in China, Germany, India, and the USA. It also looks at several legal regulations that are crucial for the business owner to follow in order to avoid any legal repercussions.


International business refers to business dealings between two or more countries that have separate or similar operations in several countries. This is a broad term that includes a variety of activities such as purchasing, selling, private and public services and much more. Many companies currently operate internationally due to several facts. Firstly, international business is very rewarding. When business involves in international operation the business platform expand which means that the company can reach more customers. Secondly, international trade enhances the use of new technology which improves accuracy, quality as well as quantity in production. It means that more profit will be able to be derived as compare to the business operating locally. International business is quite challenging too. 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 done to ensure that there are no dubious deals (Kant, 2012).

International dealings involve risks both to business and business owners’ potential of gathering enough profit. There is taxation tool that is used for an international operation which means that before commencing the operations, one must choose the location with a lot of care. The risk assessment must be carefully done to avoid loss. As mentioned already in this paper, international business involves international contracts (Khandegar & Saroha 2013).

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 the international contracts. it means that before signing nay 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 Germany, 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. India is one of the largest producers of the material and hence, many entrepreneurs purchase most of their fabric in this country. Textile or rather fabrics have international regulations an entrepreneur must have knowledge on. 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). In this paper, necessary rules and regulations, as well as issues that an entrepreneur should have knowledge on before engaging in international contracts especially textile industry are presented.

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. 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 avoiding legal issues on the contract signed and purchases made. 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). 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 as the second largest textile and fabric producer in the world is as well controlled by the international textile and clothing legislation. This law under EU aligns how all the member's countries adhere to the textile labeling and making of their fibers composition on the textile and related products. This is done to protect potential buyers and consumers to ensure good marketing in the industry.

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 at any time and all the stages in the processing chain. This including purchasing, shipping, and manufacturing the products;

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).

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; the entrepreneurs dream to have smooth operation and to accumulate more profit. In the bid to achieve these ambitions, an entrepreneur must adhere to the manufacturing and textile regulation in China. In this section, the issues and regulations that an entrepreneur dealing in the textile product in China must have knowledge of are presented.

China has one of the most stable economies in the world. The stability of the Chinese economy is attributed to many factors. One of the factors is the textile production and manufacturing industry. The textile industry in China is well regulated with various policies by the Chinese government to ensure safety and enhance competition in the market. The China government has formulated policies that any person dealing in textile industry or any associated product should have knowledge on.

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. 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.

The entrepreneur must ha know that Chinese textile manufacturing standards are covered by number of specific standards that must be adhered to. These standards include proffessional 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).

Lastly, the entrepreneur must know that the textile manufacturing is assisted by some regulations from the EUSME. This body supports China through the provision of necessary standards and regulation; information’s as well as networking in the textile industry. This knowledge will them have knowledge of ways of dealing with the criteria.

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 the business, the entrepreneur must have have knowledge on some of these laws which enable them to evade legal cost.

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 (Handapangoda et al 2010).

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 (Abravanel, 2012)

The rule covers manufacturer and importers of textile wearing apparel, manufacturers, and importers of the consumer wearing apparel and any organization that controls productions or manufacturing. The law includes 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 (He 2011).

Garment sales Regulation in the Germany

Germany is known for its large population which offers wider variety of market to several products in the world. One of the best market Germany offer is the gamers. 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.

Germany 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 standards that regulate garments sale in Germany is DIN standards for clothing and textile. This body establishes regularities for the clothes and textile products entering the markets. For smooth operation, an entrepreneur should ensure that they are aware of the requirements for this law. Alternaitvely, the German law requires all the clothing and textile related manufacturd products. The composition of the material is given consideration too since some are health hazards (Clark, 2011).

Also, the entrepreneur should be aware that the Germany market especially the textile market are regulated by EU which demand license for all the goods entering the country to ensure they’re of better standards and safe. Lastly, the consumers must know that in Germany, there is certification of the product. They use a quality certificate which goes by the name Oeko-Tex 100. This certificate is EU approved and it shows the consumers that the goods they are about to purchase are safe.


In conclusion, the international operation is one of the most lucrative businesses in the world. The market is expounded and technology is enhanced. However, there are issues one ought to know as an entrepreneur to be law abiding as well as for smooth operatiion. The entrepreneur must have knowledge on some of the key issues that governs textile industry to ensure that their operation is not interfered with. The entrepreneur should know that many different countries have different rule and regulations that governs fabric and textile products. Each and every country has distinct rules and regulations governing the market structure. The countries also depend on the international laws that cover specific industry, in this case textile. To be safe, the entrepreneur must be aware and adhere to all these laws.


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February 01, 2023

Economics Business


Industry Entrepreneurship

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