International Pairing

International Pairing
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Various legal restrictions govern international business parings and alliances. These are however usually important as there is a need to safeguard the interests of both parties to prevent the exploitation or scamming of one organization by another. Without such regulations, it would be impossible to check on the actions of one business against another leading to losses and business failure. These regulations also play a significant role in ensuring the protection of local industries. Many local companies may not be in a position to compete against the financial muscle associated with foreign, international firms. With foreign direct investment outlawed, many may choose to fund local firms with the assurance of profit sharing which may lead to the death of many local companies.
Some of the regulations include anti-trust regulations which focus on issues such as exclusivity, retail price maintenance, full-line forcing, and lying. They seek to minimize restraints of trade (Abell, 2010). Foreign trade and investment restrictions, on the other hand, seek to control the entry of foreign firms that navigate through the hurdles placed on direct foreign investment. They are usually common in countries wishing to redistribute wealth or those with a protectionist economy such as Russia, Malaysia, Indonesia and China (Abell, 2010). Finally, pure franchise regulations seek to prevent an abusive relationship between the franchisee and the franchisor by focusing on areas such as pre-contractual disclosure.

One company that has effectively established successful international partnerships to further its growth and expansion goals is Solazyme, a California based oils manufacturer. The company, which uses algae to manufactures biofuel, cosmetic, and nutritional oil products were named 2011’s “America’s Fastest-Growing Manufacturing Company” by Inc Magazine thanks to its aggressive international alliances with other companies (Thompson et al., 2016). The company for example partnered with Unilever, the British-Dutch international consumer goods company to have its products marketed and to have its products marketed and sold in its large customer base World Wide. Though the two companies initially aimed at exploring ways of meeting the rising demand for sustainable and natural products through the use of algae, the two companies were able to develop the algae technology to produce in large scale and with fewer costs. The partnership has also put to life, Unilever’s ambition of becoming sustainable by 2020. All partnerships that the company has been part of have enabled the company to spread risk, share resources with larger firms and enter into markets hence growing rapidly.
References
Abell, M. (2010). The Regulation of International Franchising – The Latest Legal Features, Research and Legal Profiles – Who’s Who Legal. Who’s Who Legal. Retrieved 13 February 2018, from http://whoswholegal.com/news/features/article/28705/regulation-international-franchisingThompson, A. A., Peteraf, M. A., Gamble, J., & Strickland, A. J. (2016). Crafting and Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases (20th Ed). New York, NY: McGraw-Hill