FOREIGN DIRECT LIABILITY

Foreign Direct Liability



Foreign Direct Liability

Introduction

In today's world where entrepreneurship is the latest fashion to acquire wealth we see a lot of new businesses launching every month. Only few of them are able to maintain their position in the cutthroat competition and rivalry. Maintenance of the success of the business totally depends on the strategies a business owner adopts to operate it. Strategies are the nub that decides the success or failure of an organization. We all know that the main purpose of operating a business is to earn a profit in a lucrative way. In order to fulfil this main ambition of the business, managers totally and completely rely on the strategies that they devise. Strategies provide direction to the business. While devising the strategies, to make the business success they forget the social role that they are responsible to perform. One aspect of the ignorance of responsibility is that when a business expand it operation, and enter in another country then the business does not abide the laws and provisions, and as a result, it cause harmful impact on the local public. In this case, the local public that suffers from the harmful effects and injuries seek support. In order to address this issue, there is a concept. This concept is of foreign direct liability. According to foreign direct liability multinational corporations are liable to maintain concerns related to the environmental protection. The aim of this paper is to talk about the phenomenon of foreign direct liability from variegated perspectives. The paper first of all describes foreign direct liability. This paper shows the concepts related to the foreign direct liability with the help of various examples. After the discussion, of the foreign direct liability legal obstacles in regulating the activities of multinational companies are explored and discussed.

Foreign Direct Liability

There is a new verve of legal implication that is going on in countries like United Kingdom, United States, Canada and Australia. The main purpose of this new legal implication is to hold liable parents company in a legitimate way in the courts of developed country. This accountability would be done with regards to negative aspects related to the labour or human rights, environment, health and safety. These claims that as a result of the foreign direct liability imply the opposite side of the foreign direct investment. This foreign direct liability provides support to those who challenge the minimum standards that are set for the multinational organizations. Those who challenge these minimum standards are now raising their voice against theses minimum standards in the light of legal principles that exist with this regard rather than asking for the formulation of new rules, regulation and policies.

In most of the cases, these actions came into the lime light by those workers who work in foreign countries as well as the community residents who face harmful effects as a result of mining, manufacturing of chemicals and extraction of oil or gas. In few cases, these actions came into the lime light by ...