Discuss some of the differences that may be encountered when executing procurements in the countries examined. Describe a scenario where you, as a citizen working in one country, could encounter problems executing procurement in another country.
Notably, policies and regulations differ from one geographical location to another. Differing cultures in countries and communities worldwide also play a crucial role in shaping these policies and regulations. Importing and exporting policies and regulations are some of the notable aspects affected by geographical locations and culture. Different nations interact with each other differently, and their relationship involves how importing and exporting activities are carried out and how organizations conduct business with other organizations from another country.
Various factors affect the effective execution of procurements, and these factors vary from country to country. These factors include the political climate, trade agreements and treaties, international history and relationships between countries. These factors are integral in businesses, including importation and exportation and procurements. For instance, in the United States, their laws differ from those of other countries, making it challenging to conduct business effectively and survive in today's market because other countries find it difficult to adhere to the US regulations and policies (Business, 2015). Therefore, policy globalization will have to be imposed so that the laws can favour both countries, ensuring smooth business operations.
For instance, for an export and import activity, say from America to China or vice versa, various items and policies will be required. First of all, a unanimous code and regulations for items imported from the US to China are crucial, then a letter outlining the value of the good, the amount being paid to the company, and what is supposed to be paid to the customs and shipping fees (Business, 2015). Similarly, when exporting the goods from the US to Mexico, Mexico is a member of the "North Atlantic Trade Agreement," the fees paid will be significantly less. The documents required only include a formal packing list and a standard invoice. The fees required will consist of the export tax and career fees.
The differences in regulations create challenges and significant contradictions when conducting international business. A case study conducted by the “World Bank Group” aimed at evaluating 34 different economies across 7 geographic regions globally studied the significance of “Freedom of Contract” and how the policies can affect the aspect. The World Bank Group determined that “Of the 34 countries in the study)… None allow the parties to a contract to exclude liability for gross negligence or for damages resulting in personal injury… All of the economies consider contracts void or voidable if concluded in contravention of public policy or under duress, fraud or coercion.” –(World Bank Group, 2019)
Notably, there are further differences and variations that almost half of the countries in the study have. These countries prohibit the restrictions on the real property being held, purchased, sold or invested in (Business, 2015). This shows that the freedom of contract is not fully embraced across the world, hence subdividing the act into subcategories involving freedoms that are not and which are limited where by whom and under what jurisdiction.
In my career as a supplies and logistics manager in the US, my role was to ensure that all international and local supplies and logistics activities were carried out smoothly. Most of the countries we source goods from or supply to include Mexico, China, Italy and parts of Africa and logistical operations for each country or region vary significantly. Aside from the logistical part, the business contracts part with companies from these regions also differ greatly. Therefore, we must be aware of the rules and regulations of labor history and adhere to them for smooth procurement and business operation.