HSBC Weights Pros And Cons Of A Move Case Study

The article ` HSBC weights pros and cons of a move´ written by George Hay published Monday, April 27,2015 in the International NY times deals with the current situation of the HSBC bank and informs about the reasons why the bank would move from Great Britain to Asia.
Hay (2015) names the high levy fee from the government used since the financial crisis in 2008. The levy is especially directed to banks which put their focus on international operations and oversea payments. Therefore HSBC had to pay $1.1 billion dollars to the British government in 2014 and the numbers for 2015 will be even this big.
Another aspect is that the banks senior manager might have to go to jail because of misconduct under proposed rules .If the HSBC would move to
When moving to an Asian country the bank would also profit from the fact that, many global rules like forcing creditors to assume losses on a banks debt in the event of bankruptcy do not apply in many developing countries. (Hay 2015)
In conclusion Hay (2015) names both contra and pro arguments for HSBC to move, but in the end he draws the conclusion that a move would always include sustainable expenses.
In the article it is clearly indicated the relationship between Business and law can have positive and negative influences. In this case the governmental restrictions and levies are a big argument for the company to move to the Asian market in order to overcome this high payments. Furthermore the different law situation in the Asia country would help the business to operate more freely.
I chose this article because it is very clear that for businesses it is very important to match with the legal forms of their environment, if not it might be that the business has to pay high fees or is brought to
The government is led by the Prime Minister (Since 2010 David Cameron). He is fully responsible for all political decisions. The Prime Minister meets the Queen once a week to inform her about all progress made. Furthermore the government also consist of the Cabinet, members of the Cabinet meet also once a week at the parliament to get informed about the progress. Another part in the government is take by the Ministers they are elected by Cameron from the House of Lords and the House of Commons their duty is to control the progress of their different departments. (www.gov.uk )
Legislation, common law, European Union law and the European Convention on Human Rights form the legal system of the UK. The common law is the basis for all legal decisions. As the UK is also a member of the European Union the European Community law also reaches here. It manly discussed economic and social matter and the rules and observance are given under the authority of the European Court. (www. Britannia.com 2004)
In the UK one can find religious freedom and the rate of financial freedom, property rights as well as business freedom are very high (heritage.org