International Trade Law: A Case Study of Johnson & Johnson

This report provides an overview of the legal aspects of Johnson & Johnson's international business operations, focusing on its healthcare sector in Australia. It details the legislative and regulatory framework impacting the company, including Australian regulations, free trade agreements, and mutual enforcement assistance agreements related to antitrust and consumer protection. The report highlights the importance of compliance with local laws, the impact of treaties on products and services, and the challenges faced by multinational corporations in navigating the Australian legal landscape. It covers topics such as work health and safety, pharmaceutical regulations, and consumer protection laws, emphasizing the need for ethical practices and adherence to industry standards. The analysis includes the benefits and implications of agreements like the Australia-United States FTA and the mutual enforcement assistance agreements between Australia and the United States, showcasing how these treaties influence Johnson & Johnson's business strategies and international trade activities. Desklib provides similar solved assignments and past papers for students.

Legal Aspects of International Business

Table of Contents
Brief description about the company.........................................................................................3
The industry the company operates in...................................................................................3
Number of staff in Australia..................................................................................................3
Number of staff globally........................................................................................................3
Location of global headquarters.............................................................................................3
Legislative regulatory framework..............................................................................................3
Impact of legislative and regulatory framework....................................................................5
Treaties, conventions or agreements..........................................................................................6
Free trade agreements............................................................................................................7
The Australia United States mutual antitrust enforcement assistance agreement..................7
Australian Competition & Consumer Commission & Federal Trade Commission mutual
enforcement assistance in consumer protection matters agreement......................................8
Impact of treaties on products and services...........................................................................9
Bibliography.............................................................................................................................10

Brief description about the company
The industry the company operates in
Johnson & Johnson is an American multinational founded in the year 1886. The company
manufactures medical devices, consumer packed goods and pharmaceutical products
(Johnson & Johnson Services, Inc., 2018). The industry in which the company operates is
healthcare consumer goods, medical equipment and pharmaceutical industry. The medical
equipment industry of Australia is mature and follows well formed system of regulations. The
industry is adopting new technology which will help in stabilizing the growth (Emergo,
2018). Australian pharmaceutical market will grow modestly because of market access to
pharmaceutical drugs and the increased awareness of need for chronic diseases and lifestyle
detection (UBM, 2018).
Number of staff in Australia
There are more than 10,000 employees in Australia (Linkedin , 2018)
Number of staff globally
Johnsons & Johnsons have more than 250 operation companies in about 57 countries. There
are about 130,000 people employed in the companies around the world (Johnson & Johnson
Services, Inc., 2018).
Location of global headquarters
The global headquarters of Johnsons & Johnsons is in New Brunswick, New Jersey, USA
(Linkedin , 2018).
Legislative regulatory framework

It is important for the businesses to understand the Australian regulatory obligations. The
regulations are formulated to make sure sufficient protection, fair competition and integration
for the parties in the market. The business regulatory requirements are determined by the
different agencies in Australia. The internal agreements impact some areas of the Australian
environment as well. The Australian governments and territory and state government
legislation are formulated for the purpose to protect the consumers, the community, the
environment and promoting the fair competition. The laws help in governing the way in
which the businesses interacts with the customers, suppliers and the other businesses. The
rights of the business owners and the businesses are outlined by the laws when the conflicts
arise.
All the companies that are involved in providing the public health services have to comply
with the laws, regulations and obligation in serving the patients. There are particular State
and Common wealth requirements to regulate the health related bodies. The staff of the
organizations should also understand the legislations, NSW health policy directives and the
professional standards of the practices and guidelines. It is important for the organizations to
make sure that the equipments used are licensed and all the staff members are licensed,
registered and qualified.
Work Health and Safety Act places the obligations upon the people undertaking the business
for ensuring the safety and the health of the staff members and the other people at workplace
from the actions or the activities undertaken within the organization as a part of conduct of
business. The chief executives of the organization are responsible for implementation of the
health and safety system to reduce the chances of injuries and harm to the staff at the
workplace (NSW Health, 2016).

The pharmaceutical companies are regulated by the Australian legislation. It helps in
providing the framework which contributes in ensuring the companies to operate through
focusing upon the ethical practices and the standards. The pharmaceutical industry work in
collaboration with the health consumer organizations in order to provide the support and the
information for helping consumers to manage their well- being and health. The focus upon
the business compliance and conduct has increased. It is important to declare the benefits
offered to the organizations and the individuals under the code of conduct. The supplying
information need to be reported according to the code of conduct (Rahalkar, 2012). There are
separate compliance and legal processes that are followed by the pharmaceutical companies,
which helps in assisting and enforcing the legislation and ethical requirements. The industry
understands the responsibility to ensure that the support will not result in conflict of interest.
It is important to ensure compliance with the legislations and the ethical conditions in the
relationship and partnerships (Medicines Australia , 2018).
The government policies are issued by the central agencies and include the mandatory
requirements related to different issues. NSW Health Policy Directive System notifies the
health organizations about the policies and the mandatory requirements (NSW Health, 2016).
Impact of legislative and regulatory framework
Johnsons & Johnsons is a multinational company that operates its business in Australia and
the other countries of the world. It is the responsibility of the multinational company to
comply with the regulation and legislation of Australia. The legislations and the regulatory
framework in Australia are different. It is important to understand the regulations and
legislation in order to establish the competitive advantage in comparison to the existing
companies in Australia. There are many of the organization that provides health care services
to the customers. The problems are faced by the company in complying with the legislations
rules and regulations of Australia. The high level of competition is faced by the company.

The health care industry of Australia has its own rules and code of conduct. The healthcare
organizations follow separate regulations for operating the business in Australia. The separate
standards and regulation are designed in order to make sure the fair competition and trade
(PWC, 2014). It is important for the healthcare company operating its business in Australia to
comply with all the regulations in order to maintain the quality of the services offered and
comply with the legislations and standards. The processes and the procedures that are
followed by the health care industry of Australia are also different. The MNCs have to make
efforts to adjust with these processes and procedures. There are different regulations and
legislations related to corporate tax upon the healthcare organization operating in Australia.
The companies have to pay the direct tax, capital gains tax, dividends, debt funding and
royalties for operating its business in Australia. This affects the profitability of the
organization. Complying with the rules and the regulations is difficult as well as there are
different restrictions upon the company in context of business operation.
It is important for the health care organization to ensure the health and safety of employees. It
is important for the company to keep the qualified, registered and licensed staff in an
organization. Along with this, it is important for the organization to make the staff understand
about the legislations that need to be considered. The consumer protection laws are also
followed in Australia in order to make sure that the consumers are served with the good
quality of products and services. The healthcare organizations operating in Australia have to
develop the report of the processes that are followed, equipments that are used and such other
information for reporting to the regulatory body so that they can evaluate the actions of the
organization. This increases the load of the organization and it is difficult to maintain the
records of the information for reporting.
Treaties, conventions or agreements

Free trade agreements
Free trade agreements are the treaties among the two or more countries, which provides the
benefits to the producers, exporters, importers and the investors through eliminating some
barriers for the international trade and the investment. Australia has entered in free trade
agreement with ten countries. There are some other agreements that are under negotiation
presently (Department of Foreign Affairs and Trade, 2018). Australia –United States FTA
can provide the benefit to the business in case the services and the products offered by the
company qualify for the preferential treatments. All the tariffs have been eliminated for the
products and the services imported from the US into Australia. Many of the tariffs have also
been eliminated for exported products to the United States from Australia. (Department of
Foreign Affairs and Trade, 2018).
The Australia United States mutual antitrust enforcement assistance
agreement
The governments of the United States and Australia wish to enhance the effectiveness of
enforcement of antitrust laws by mutual legal assistance and cooperation among both
countries. The parties have to assist each other for providing with the antitrust evidence that
can assist in determining whether the actions by the person are violating or not in relation to
the antitrust laws of respective countries. The antitrust authorities of both the countries need
to be compatible to the laws, enforcement policies and the important interests and inform the
other party’s authorities about the activities that are anticompetitive and relevant to
enforcement activity by authorities of other party (Lipsky Jr., 2009). The information related
to investigation or enforcement activities to the antitrust authorities for providing assistance
under agreement which can affect the interest of other party should be compatible with the

laws of party. No actions can be taken by parties which is inconsistent to mutual assistance
legislation. The assistance considered by this agreement involves:
 Disclosing, exchanging, providing or discussing the evidences of antitrust under the
existence of the antitrust authority.
 Obtaining the antitrust evidence by the request of Antitrust authority of other party
 Providing copies of records of the information and the documents
Party can seek assistance from other pursuant to other treaties, agreements, practices
or arrangements.
There is no pressure upon a person to provide evidence for antitrust in violation of legally
applicable privilege.
Nothing can affect the rights of antitrust authority to seek evidence of anti-trust (ACCC,
2018).
Australian Competition & Consumer Commission & Federal Trade
Commission mutual enforcement assistance in consumer protection
matters agreement
The Australian Competition & Consumer Commission & Federal Trade Commission mutual
enforcement assistance in consumer protection matters agreement, permits for information
sharing and enhanced cooperation, strengthening ties among two nations related to the
matters of consumer protection and enhancing the cross-border cooperation in the area of
consumer protection.
 Both parties agree to share evidence which allow effective enforcement of consumer
protection laws of the respective conditions such as to avoid the duplication, research and
education, coordinated investigations, promote effective understanding through legal and
the economic conditions related to consumer protection law enforcement for keeping each

other informed about the developments in the countries and the companies of each other
based in that country.
 The staff should emphasize to provide and exchange right information for investigation
and research related to legislations, resource issues and staffing.
 The staff of parties will use best efforts compatible with the laws of the parties, important
interests and the enforcement policies in order to inform each other related to violation
related to consumer protection laws occurring in other party’s territory and which can
affect the markets or the consumers of the other party (ACCC, 2018).
Impact of treaties on products and services
The treaties and the agreements among the two countries help in enhancing the cooperation in
an effective manner. This will help in enhancing the relationship in terms of the trade. The
FTAs are highly effective as it helps in eliminating the trade barriers and the tariffs for the
company that wish to operate its business in the other country. Hence, it provided the benefits
to Johnsons and Johnsons to establish the business in Australia in an easier manner. The
company can easily establish business and carry out the import and export activities without
any problem (Baier & Bergstrand, 2007). The Australia and the United States mutual
antitrust enforcement assistance agreement, is very beneficial as it helps in eliminating the
chances of the occurrence of the illegal actions by any of the party. It will provide the
security to the company to trade in a fairer manner without any hindrance. The countries can
get the assistance in order to get the information related to anti-trust actions of any of the
party (Gal, 2010). Australian Competition & Consumer Commission & Federal Trade
Commission mutual enforcement assistance in consumer protection matters agreement
provide the ability to the each of the nation to get the information for the investigation and
comply with the laws related to consumer protection law. These treaties and the agreements
will allow the nations to enhance their economic growth, maintain the cooperation with each

other and maintain good relationships with each other. Through establishing the businesses in
the other countries can help the countries to develop the economic conditions. The
advancements can be attained with the help of such agreements. Each of the countries will be
able to improve the healthcare sector. Better healthcare services can be offered to the
consumers and the well -being of the people of the country can be focused through the
establishment of the business in Australia. The company can effectively expand the business.
The country can also attain the benefits in terms of economic growth and development,
employment consumer benefits, foreign exchange gains through removing the trade barriers.
References
ACCC, 2018. Australian Competition & Consumer Commission & Federal Trade
Commission mutual enforcement assistance in consumer protection matters agreement.
ACCC.
ACCC, 2018. The Australia United States mutual antitrust enforcement assistance
agreement. ACCC.
Baier, S. & Bergstrand, J., 2007. Do free trade agreements actually increase members'
international trade? Journal of International Economics, 71(1), pp.72-95.
Department of Foreign Affairs and Trade, 2018. Australia's free trade agreements (FTAs).
[Online] Available at: https://dfat.gov.au/trade/agreements/pages/trade-agreements.aspx.
Department of Foreign Affairs and Trade, 2018. Australia-United States FTA. [Online]
Available at: https://dfat.gov.au/trade/agreements/in-force/ausfta/Pages/australia-united-
states-fta.aspx.

Emergo, 2018. AUSTRALIA – Overview of medical device industry and healthcare stats.
[Online] Available at: https://www.emergobyul.com/resources/market-australia.
Gal, M.S., 2010. Antitrust in a Globalized Economy: The Unique Enforcement Challenges
Faced by Small and Developing Jurisdictions. The International Lawyer, 33(1), pp.1-25.
Johnson & Johnson Services, Inc., 2018. About Johnson & Johnson. [Online] Available at:
https://www.jnj.com/about-jnj.
Johnson & Johnson Services, Inc., 2018. Products. [Online] Available at:
https://www.jnj.com/healthcare-products.
Linkedin , 2018. Johnson & Johnson. [Online] Available at:
https://in.linkedin.com/company/johnson-&-johnson.
Lipsky Jr., A.B., 2009. Managing antitrust compliance through the continuing surge in global
enforcement. Antitrust Law Journal, 75(3), pp.965-95.
Medicines Australia , 2018. Learn About Medicines Companies. [Online] Available at:
https://medicinesaustralia.com.au/community/working-together-guide/learn-about-medicines-
companies/.
NSW Health, 2016. Legal & Policy Requirements. NSW Health.
PWC, 2014. Doing business in Australia An introductory guide. PWC.
Rahalkar, H., 2012. Historical Overview of Pharmaceutical Industry and Drug Regulatory.
Pharmaceutical Regulatory Affairs: Open Access, 11(2), pp.2-12.
UBM, 2018. Australian Pharma Market Set for "Modest Growth" to 2020. [Online]
Available at: http://www.pharmexec.com/australian-pharma-market-set-modest-growth-2020.