Legal Aspects of International Trade and Enterprise

This document discusses the legal aspects of international trade and enterprise, focusing on the legislative regulatory framework affecting Amazon Limited in the USA. It explores the impact of treaties, conventions, and agreements on Amazon's products and services. The document provides insights into the tax regulations, labor laws, and consumer protection laws that Amazon has to comply with. It also highlights the importance of maintaining a positive image and ethical tax compliance for multinational corporations.

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LEGAL ASPECTS OF INTERNATIONAL
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Introduction
multinational company (MNC) which operates in USA.
International trade help in increasing international investment, trade and promote
development among relating nations. There are two main categories of laws, the private laws of
international trade and international public law, there is a significant relationship between the
two categories. The rights and obligations of international trade are covered under private trade
law while conflict resolution between nations of different legal systems is covered in public
international trade law. In Australia, there are several operational multinational companies
among which is Wesfarmers Limited discussed below. Amazon is a multinational technology
company dealing with e-commerce, computing, cloud, and artificial intelligence. Its headquarters
is located in Crystal City, Washington in the US (Bowers, 2015). It’s the largest private
employer with almost 647,500 full- and part-time employees as recorded in 2008. Historically,
Amazon started by launching an online bookshop which with time expanded to video
streaming/downloading, development of software, video games, furniture, toys, food among
others.
How the legislative regulatory framework/s affecting the amazon limited in USA
In the framework for analysis; for proper assessment and development policy in response
to the risk of the sustainability of corporate tax law of the US based on the exploitation of
international tax rule (Cachia, 2017, p.23-35). Prior knowledge to assessing business taxation is
required generally to guide on what to do, and should not be done, that is well defined within the
US jurisdiction to tax. In consideration of benchmarks for assessing business tax for the past four
decades. Subject to US business tax system in the recent decades, the combination of the current
tax regulation had made Amazon and other companies operating on the same business line to

Legal Aspects of International Trade and Enterprise 3
abscond complying to paying taxes to the expected standards of corporate taxes (Ferreira, 2016,
p.67). There is very insignificant support the companies get from newly formed Trump
administration’s tax reform bill that was made a law in 2017. A report that was published in
2018, about 60 of America’s largest corporations did not file in their taxes on $79 billion in the
US (Habu, 2017). The multinational companies reduced the net corporate tax rebate of $4.3
billion instead of paying 21 percent statutory corporate tax which amounts to $ 16.4 billion. In
the review included discussion and analysis of appropriate benchmarks to think about the tax
system. In spite of some differences in emphasizes and details, a striking level of benchmarks
has featured among the benchmarks such as; simplicity, equity and economic efficiency. The
benchmark of economic efficiency can be used to mean the same as the objectives of optimizing
economic growth which is achieved through the principle of neutrality: limiting the level to
which the tax system affects the economic choices (Harris, et.al, 2018). Essentially all taxes
create a drag on economic efficiency which results in the main objective of imposing a tax policy
to minimize the adverse impact of economic activities. This work is aimed at explaining the legal
aspect of international trade and enterprise.
Internationally, the main conceptual challenge is to come up with the comparator for
neutrality. Aiming at the neutrality investment decisions with the capital investment neutrality. It
can be arrived at where there is an investor from a particular country experiencing the same
effective tax rate on investment regardless of where investment is done. This can be obtained
when the same tax rate is imposed in both domestic and foreign investors. For capital export to
operate effectively every jurisdiction should have the same tax base and tax rate. Using a tax
break to a stock option in 2018, Amazon reduced its tax exceeding $1 billion. Multinational
corporation when compared to accountability for human rights obligations, recently, the limit has

Legal Aspects of International Trade and Enterprise 4
reached where the concern is not anymore whether multinational corporations have legal tie to
human rights instead, what is the range to which the legal tie does Amazon has to human rights
and to what nature.
Many countries have acquired the multinational corporation by providing their report in
human right and foreign countries environmental records. Other structural designs include the
change in conflict law which simplifies it in the United Kingdom and the United States have
created greater opportunities in the domestic corporation within the jurisdiction of the domestic
court to check on their reliability on overseas operations (Johnson, 2018, pp.364-368). Talking
on June 2016 report of tax justice, only 315 out of 500 companies revealed their reception of tax
break that enables corporations to right off expense relate to the stock-option report to the public
of the stakeholders. Among the stakeholders that reduced their tax rates are Netflix, performance
food group and half a dozen of companies. Consumer protection law.
Most multinational corporations depend upon the positive image to brand their products.
As a result, they came up with municipal codes of conduct regarding legal ties to human rights
and approved their effort to abide by those codes (Okoye, and Onyejekwe, 2019, pp.525-538).
The skeptical point that needs to be made clear majorly deals with the MNCs not complying with
the human rights standards but rather, they are seen as compliant with the human rights
standards. This record arouses the probability of misinterpreting the statements on the topics and
that the consumer protection law has major roles to ensure that the rhetoric of MNCs in their
lawsuit including the tax credit serving as a possible example. This possibility was alleged in
California through private citizen known as Kasky v Nike who asserted that Nike was engaged in
an intended misinterpretation and negligent, unlawful and unfair trading operations and making
false advertisements, in fulfilling the Californian Business and Professional Code.

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The partnering countries practice their jurisdiction regarding either territorial or
worldwide approach or on a combination with both. Focusing on the worldwide tax approach, a
municipal practices their sovereign power to tax the income to residents from anywhere in the
world while extra income derived by foreign residents within its borders. In the territorial tax
approach, a country minimizes its sovereignty to tax collection collected within its borders. A
strict territorial tax approach was adopted when the income tax was first imposed in the United
States which implied that taxation was imposed for only income within the territorial boundaries.
In the successive decades, the reforms are directed towards a taxation system worldwide with the
foreign income source of the residents of America subjected to tax, withholding dividend taxes,
interests and royalties.
In addition, the Labor law and Intentional business enterprises arrived under the
regulatory framework embraced by Amazon Limited. International Business Machine states that
domestic incentives reduced their income taxes in 2018 by $110 million. This led to Amazon
disclosing their reduction to tax by three percent financial principle in the same year (Olbert, and
Werner, 2019). Regarding the true corporate tax reforms that reviewed the appeals in the tax
loopholes for reconsideration. When trump's administration thru the consultation of the Congress
spearheaded the technical flaw set for corporate tax which changed the tax part of the Tax Cut
and Job Act (TCJA) in December 2017. This new law cut the statutory tax rate to 21 percent and
not touching the rest of the tax breaks which apparently increased profit and a zero-tax income.
As a result, a continued decline in the already existing low corporate tax revenues. In the
financial year of 2018, there came a drop in the corporate tax revenue by 31 percent as related to
US Treasury data. Compared to other years, this sounded more sudden in the history of
economic growth of the United States.

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Treaties, conventions or agreements that have impacted on the products or services that
Amazon Limited Company in USA
A treaty is formally concluded and ratified an agreement between the nations with which
an organization is trading as per the viewpoint. The major reason for adopting a treaty is to
enhance the trade between countries for better business revenue and economic growth. It is
easier to track down the tax breaks that make the biggest and most profitable corporation as
demonstrated in the TCJA report to abscond tax. The judiciary has developed an interest in
enacting tax reform that asses the cost if the current tax break not assuming those mentioned in
the tax reforms and to come up with ways that take into account the profitability of corporations
paying their taxes in the fair share of the US taxes (Paul, 2019, p.2). When this is embraced with
stakeholders and partnering countries that enhances a good partnering relationship for the
imports and imports. This has enhanced ethical tax compliance among multinational companies,
especially for the Amazon Limited Company.
Software engineering as well as e-commerce marketing platform in collision with the
artificial intelligence of the Amazon Limited has posted a huge field in the application as
manifested in the companies outlines making the most outstanding company in marketing and
computer applications program and consumption. In the review of the financial balance that the
Amazon company displays to the US economy, its products are sellable to the market and its tax
return is huge that can support at least 5 percent of the American population. In addition, to
attain the economic growth of the nation, an agreement to formulate a collaborative business
policy was supported largely by their daily products that are updated to the current happening of
events (Quentin, 2017). To maintain the number of staffs in Amazon without interfering the pay
or rather the human resource management, Amazon will have to make a review on the spread of

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its mini companies, large number of staff and facilities so as to care so well for its staff, treat
them well taking into consideration the labor laws across the globe and within the United State.
Human labor is of such great importance that even that of machines even though machines work
faster than human beings, but they are devised by men.
Furthermore, the trumps administration that enabled the TCJA on the taxation rule that
helped to reduce the tax load to the MNC in America and even across the borders, this act
enhanced corporation tax reliance. Amazon localized storefronts which varies in selection and
prices, are segmented by top-level domain and various county code such as; in China, the
domain name is amszon.cn since 2004, in India, it is Amazon.in since 2013, in Japan, it is
amazon.co.jp and many more countries has been designated with their various continents.
Amazon allows its subscribers to submit their review through their web page for their products.
The suitability of the products can be checked via rating in five golden stars. When the rating is
too low, then that calls for advancement to the products and services. In response, the Amazon
headquarters provides for budges option to viewers who indicate their real names based on
confirmation of a credit card account or when the reviewer is a popular and the most rated
reviewers (Robles, 2018).
Around 40 percent of the total sales that were made in 2008 was as a result of third-party
selling of the Amazon products. Their associates are paid by commission when they refer the
customers to the Amazon links due to referral results in sales. After Google Ads, Amazon
program is rated the second-best popular advertising network with about 1.2 percent subscribers
per day. Associates can gain access to the Amazon catalog directly from their website by using
the Amazon Web Service (AWS) XML service (Sikka, 2018, p.9-20). In the Project Genesis
initiated in June 2010, the customers suggested that Amazon should launch and provide

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transparency to their sellers by recommending specific products to the third-party seller to sell in
Amazon
Conclusion
Expanding the marketing program, Netflix, food processing, e-commerce, and video
games network moves the world a greater step ahead towards achieving its technological goals
and sustaining its customers and clients on a daily basis (Stuebs and Whiteaker-Poe, 2018,
pp.58-80). The partnership with other countries, through good services, should increase on
networks in sales and product promotion. Amazon by setting up a partnership agreement through
improving their service production with the local community. The advantages of fostering an
extensive culture, flexibility in work arrangement, paid parental leave, keep-in-touch program,
and on-site vacation childcare. Amazon.com is basically a retail platform with a revenue model
for the past 20 years.

Legal Aspects of International Trade and Enterprise 9
References
Bowers, S., 2015. Amazon to begin paying corporation tax on UK retail sales. The Guardian,
London, 23.
Cachia, F., 2017. Analyzing the European Commission’s Final Decisions on Apple, Starbucks,
Amazon and Fiat Finance & Trade. EC Tax Review, 26(1), pp.23-35.
Ferreira, J., 2016. How Mismatched Tax Rules Allow Multinational Enterprises to Be One Step
Ahead: In Particular, Apple and Amazon. King's Student L. Rev., 7, p.65.
Habu, K., 2017. How aggressive are foreign multinational companies in reducing their
corporation tax liability?.
Harris, S., Rumke, N., Flynn, J., Ranzau, Q. and Miller, H., 2018. Financial Analysis of CDW
Corporation.
Johnson, P., 2018. Book review: Jeffrey A Maine and Xuan-Thao Nguyen, The Intellectual
Property Holding Company: Tax Use and Abuse from Victoria's Secret to Apple (Cambridge
University Press 2017) 310 pp. Queen Mary Journal of Intellectual Property, 8(4), pp.364-366.
Okoye, A. and Onyejekwe, C., 2019. Law’s ethics and sustainability: corporate tax and
sustainable social structures. In Sustainability and the Humanities (pp. 525-538). Springer,
Cham.

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Olbert, M. and Werner, A.C., 2019. Consumption taxes and corporate tax planning-evidence
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