Asked by Dellarose Dickson on May 29, 2024

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Do you think it is incumbent on international businesses to determine their property rights in any given country? Give reasons to support your answer.

Property Rights

Legal rights to use, control, and derive benefits from a property or resource.

International Businesses

Companies that operate across national borders, conducting sales, logistics, and management activities in multiple countries.

Country

A nation with its own government, occupying a specific territory.

  • Recognize ethical practices and policies in business.
  • Identify the importance of intellectual property in the context of global commerce.
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Zybrea KnightJun 04, 2024
Final Answer :
Answers will vary. It is incumbent on international businesses to determine their property rights in any given country. For instance, in the United States, land owners control the mineral rights to any resources under their soil. In Botswana, the federal government owns all mineral rights regardless of who owns the land. In Zimbabwe, President Robert Mugabe instituted a policy of property-rights redistribution that took land from large farmers and gave it to poorer farmers. The intent was to redistribute wealth across the country, but many studies indicate that it has resulted in lower agricultural yields instead. Some whose property rights were violated have sought restitution, but few have received any compensation, and now the government is taking land from anyone who opposes the ruling party. Property rights may be difficult to enforce in some countries that keep poor records. For instance, owners of 17 properties in Telum, a beautiful beach town in Mexico, were recently driven out by court order. Most of them were foreigners trying to run hotel businesses in Mexico. While all had legally purchased the land, there were conflicting property deeds and ownership records. The government sided with local owners and expropriated the property from the foreign owners.
The section "Property Rights and Intellectual Property" on page 61 discusses why it is incumbent on international businesses to determine their property rights in any given country. Students can use this section to make their own interpretation and answer this question.