ElectroCorp in Philippines

Résumé du document

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?

Extraits

[...] Recent fluctuations of the Philippine peso against the greenback, however, seem to show that the monetary policy of the country is finally beginning to put in order. The Philippine peso is therefore not a currency in which it is advisable to invest because the authorities have used to devalue the currency in order to restart the economic machine, although such a policy is clearly ineffective as evidenced by the economic problems of the Philippines since the end of World War II. II) Intellectual Property on Philippine. For intellectual property we pay attention to two things in particular: - Patents - Brand, trademarks . [...]

[...] The use of counterfeit products is common in ASIA and the Philippines are unfortunately not spared. However, in legal texts is a clear violation of the deposit, which protects the brand. Use in commerce any reproduction, counterfeit, copy, or colorable imitation of a registered mark or the same container or a dominant feature thereof in connection with the sale, offering for sale, distribution, advertising of any goods or services including other preparatory steps necessary to carry out the sale of any goods or services on or in connection with which such use is likely to cause confusion, or to cause mistake, or to deceive; or Reproduce, counterfeit, copy or colorably imitate a registered mark[ Protect your patents: First of all, we have to notice that Philippines signed “Patent Cooperation Treaty Done at Washington on June amended on September modified on February and on October 2001.”[3] The PCT is an international treaty, it can greatly ease applications / deposits for international patents. [...]

[...] Benigno Aquino enjoys high popularity and the country's elite. Presidential elections are every 6 years. The objective of Benigno Aquino is to improve the governance of the country to have a positive impact on the economy. But corruption is still present in the country and they still exist problems in the law enforcement and the quality of regulation. He also wants to reduce inequalities and increase the growth of the middle class. However, there is a rebellion Islamic wanting to create their own state in the Philippines for over 40 years on the island of Mindanao. [...]

[...] Before doing the Joint-Venture contract you have to be registered under FIA'91, SEC registration. In Philippines you have different geographical zone for specific industry, and it exist a industry zone for electronic manufacture, you have also the opportunity to create your company in the “Ecozone of the Philippine”: “Special Economic Zones” (SEZ) shall refer to selected areas with highly developed or which have the potential to be developed into agri-industrial, industrial, tourist, recreational, commercial, banking, investment and financial centers whose metes and bounds are fixed or delimited by Presidential Proclamations. [...]

[...] The PCT then leaves you 18 months to protect your patent in the countries you want to pay and so the corresponding country. Leaving time to appoint patent agents, and translate the document if necessary in several countries, the Philippines, the patent may be filed in English without any worries. The advantage is a signatory of the PCT cannot refuse your patent for formal reasons, as the PCT will ensure the proper formatting of your patent previously. This bond is also a great advantage in terms of safety because your patent is registered abroad and thus more easily verifiable and legitimate in case of conflict. [...]