international business environment Legal considerations
Legal considerations
The legal aspects are important for the business choice. Laws are different in every country. Laws would regulate business practice, define the manner and set down the rights and obligations. This made business have to run within the border set by law and definitely affects the efficiency and profitability when running business in that country.
The type of legal system.
The legal system in Spain and Korea is based on civil law, while court precedents are not granted official status as law. The Spanish legal system is based on comprehensive legal codes and laws rooted in Roman law, as opposed to common law, which is based on precedent court rulings.
Because Japan occupied Korea from 1910 to 1945, the Korean legal system resembles the Japanese system. After the occupation however, there were attempts to adopt many aspects of the American legal system. It must be remembered that the first civilian government commenced only in 1992, and thereafter, increasingly more democratic reforms have taken place.1 Both countries use contracts and they are important for doing business in both countries. Neither Korea or Spain has advantage to the type of legal system.
The protection of property right
The definition of property right: In economics, property usually refers to ownership (rights to the proceeds of output generated) and control over the use of the means of production. They may be owned privately, by the state, by those who use it, or held in common by society.2
The world property right index 2012 shows the differences between the countries and the country’s world ranking. South Korea and Spain are both in the top 40 of the index. Spain ended this year on the 35th place and South Korea on the 40th place. The overall score off all the points together we can say that Spain compared with Korea is better in protection of property rights.
In the figure on the next page we compare South Korea with Spain. The higher the score the
The legal aspects are important for the business choice. Laws are different in every country. Laws would regulate business practice, define the manner and set down the rights and obligations. This made business have to run within the border set by law and definitely affects the efficiency and profitability when running business in that country.
The type of legal system.
The legal system in Spain and Korea is based on civil law, while court precedents are not granted official status as law. The Spanish legal system is based on comprehensive legal codes and laws rooted in Roman law, as opposed to common law, which is based on precedent court rulings.
Because Japan occupied Korea from 1910 to 1945, the Korean legal system resembles the Japanese system. After the occupation however, there were attempts to adopt many aspects of the American legal system. It must be remembered that the first civilian government commenced only in 1992, and thereafter, increasingly more democratic reforms have taken place.1 Both countries use contracts and they are important for doing business in both countries. Neither Korea or Spain has advantage to the type of legal system.
The protection of property right
The definition of property right: In economics, property usually refers to ownership (rights to the proceeds of output generated) and control over the use of the means of production. They may be owned privately, by the state, by those who use it, or held in common by society.2
The world property right index 2012 shows the differences between the countries and the country’s world ranking. South Korea and Spain are both in the top 40 of the index. Spain ended this year on the 35th place and South Korea on the 40th place. The overall score off all the points together we can say that Spain compared with Korea is better in protection of property rights.
In the figure on the next page we compare South Korea with Spain. The higher the score the
References: http://en.wikipedia.org/wiki/Judiciary_of_Spain http://www.korealaw.com/sub/information/boardView.asp?brdId=overview&brdIdx=1&gotopage=1&search=&search_string= http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Korea-South-WORKING-CONDITIONS.html