Legal Framework and Treaties: HI5015 International Business Report

This report provides a comprehensive analysis of the legal aspects of international business, specifically focusing on Schlumberger Australia Pty Ltd. It begins with a description of the company, its operations, and its position in the oil and gas industry. The report then delves into the regulatory framework affecting Schlumberger's operations in Australia, including taxation laws, environmental regulations, and the Fair Work Ombudsman. The analysis highlights the impact of these regulations on the company's compliance and operational practices. Furthermore, the report identifies and examines the impact of various treaties and conventions, such as the Australia-Austria bilateral treaties, Japan-Australia Economic Partnership Agreement, Australia-United States Free Trade Agreement, and Australia-France Bilateral Treaties, on the products and services that Schlumberger provides in Australia. The report concludes by summarizing the overall impact of these legal and regulatory factors on Schlumberger's business activities in the Australian market.

Title: HI5015 Legal Aspects of International Business and Enterprise
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HI5015 Legal Aspects of International Business and Enterprise
Table of Contents
Introduction......................................................................................................................................3
1. The description of Schlumberger.............................................................................................3
2. Identification and impact on the regulatory framework that is affecting the multinational
company operating in Australia.......................................................................................................3
3. Identification of the treaties and convention on agreements that have made an impact on
products and different services that the MNC provides in Australia...............................................6
Conclusion.......................................................................................................................................7
Reference List..................................................................................................................................9
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HI5015 Legal Aspects of International Business and Enterprise
Introduction
The essay is generally based on the understanding of the legal aspects which are related to the
international business and enterprises. Schlumberger is taken into consideration as a
multinational company which operates in Australia for understanding the legal aspects. There is
a brief description provided about the organization, the second part it deals with the regulatory
framework that is generally affecting the multinational company operating in Australia. The third
part of the essay generally conveys the treaties and agreements that impact on the organization to
work in Australia. The entire essay is based on the operation of the organization under the legal
terms and conditions of Australia.
1. The description of Schlumberger
Schlumberger Australia Pty Ltd is generally a foreign privately owned company which is
primarily concerned with the provision of Technology and Services. They also provide solutions
to International oil and gas industry. The company employs 935 people and is administered from
the head office that is located in Perth. The organization is generally a subsidiary of NYSE
services, Schlumberger Limited. They provide Technology Services to the international Oil and
Gas Industries and also have the acquisition of Geoservices that includes mud logging, well
intervention and field surveillance as well. The company generally is associated with
information, testing, evaluation and production of services that are related to Oil and Gas Wells.
The directional measurements and logging in drilling procedure are also connected with the
acquisitions processing and seismic data sales. These are a part of the semi-submersible drilling
units. Therefore it engages in the engineering solution for a proper reservoir to service consisting
of products related to software, data service, and information technology for the exploration of
hydrocarbon and its production (slb.com, 2019).
2. Identification and impact on the regulatory framework that is affecting the
multinational company operating in Australia
The Government of Australia has generally recognized that there is a basic need of regulatory
framework so that there is consistency in the developing market. This aims at making some
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HI5015 Legal Aspects of International Business and Enterprise
major reforms at the company which streams the regulation of maintaining proper integrity with
the protection of the investors and protection of the markets. There are several regulatory
Framework which impacts on the multinational companies of Schlumberger Australia Pty Ltd
operating in Australia. There are the different framework of Australia that has been discussed in
detail with the context of Schlumberger Australia Pty Ltd. They are like taxation laws in
Australia, environmental laws in Australia and Fair work ombudsman (Wildgust et al. 2019).
Taxation laws in Australian:
The taxation laws in Australia generally deals with the paying of tax by the individuals and also
by an organization to the levels of government in Australia. The regulatory framework is
generally located with federal and state government structure. According to the tax laws in
Australia, the tax which is collected by the individuals and from the organizations are generally
being invested in the public welfare and also redistributed for the wealth that can be transferred
through payments. It can be said that tax which are paid by the companies or corporations on the
annual profit also known as corporate tax. Therefore according to the law, the company or the
corporation which are earning revenue lower than $ 2million are considered as a small business,
but organizations that are earning revenues more than $ 2 million are subjected to big business
(Volkov et al. 2017).
Schlumberger Australia Pty Ltd generally earns revenue for the twelve months ending March 31,
2019, was $32.865B. Therefore the organization is considered in the list of big companies
operating in Australia. On such circumstances, the organization needs to pay corporate tax at the
rate of 30 % per year. The tax is generally paid to the corporate before paying it to the other
stakeholders of the organization. Therefore the concerned organization needs to pay the
appropriate corporate tax in order to run their operational function within the maintenance of
Australian regulatory framework (Stewart and Cioni, 2018).
Environment laws in Australia:
The act of 1999 which is related to the environmental protection and biodiversity conservation is
the national environmental law of Australia. The act helps take several actions which are
generally protected and can make an impact on the environment. In the year 2008, there were
over 96% of Schlumberger sites which were around 550 and were considered environmentally
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HI5015 Legal Aspects of International Business and Enterprise
significant. These were achieved through compliance with a proper requirement of the
company's environmental management standard and are also related to the case of local
environmental regulations are considered and managed with the company standard divergence.
They have opted for more stringent of Schlumberger standards. This shows that the organization
follows the environmental laws that are created by Australia and are imposed to individuals as
well as the organizations too in maintaining the safety of the environment and also in the
protection of the biodiversity (Rangadass, 2016).
Fair work ombudsman:
Fair work Ombudsman generally is considered as the laws and regulation that are developed by
the Australian government framework. This constitutes the fair work legislation within the
organization that is operating within Australia. According to the fair work act 2009 and fair
work regulation 2009, the act and regulation aim in protecting the definite well being of an
employee who is working in a particular organization. There is some legislation which deals with
building relationships of employees but the workplace employer in Australia. This act also
provides different kinds of safety and security to the employees that are entitled within an
organization. The law also constitutes of hiring employees that have a minimum age, have
fairness to work and arrangements of working. This enables the inflexible working environment
is also protecting the employees from different kinds of discrimination that are followed in an
organization (Oh et al. 2019).
Schlumberger Australia Pty Ltd follows the framework of Fair work Ombudsman; these relate to
the flexible work environment and equality among the individual employees working in an
organization. The equality also enables in the decrease of the discrimination at the workplace
concerning the organization. It also applies a proper structure of safeguarding their employees
and also in providing the minimum wages which are necessary for the safety of workers. The act
also allows in sharing different opinions and views by the employees at their workplace.
Therefore it can be said that being an MNC operating in Australia, the organization has an inbuilt
practice of creating a work environment that is flexible. This makes the employees working with
perfect efficiency within the organization (Malik et al. 2019).
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HI5015 Legal Aspects of International Business and Enterprise
3. Identification of the treaties and convention on agreements that have made an
impact on products and different services that the MNC provides in Australia.
The treaties can also be considered as the international conventions, international agreements,
packs, convenience, protocols and specific constitution for a multinational organization. There
are different types of agreement done between two or more nation-state to maintain a treaty. It
can be said that international law is considered as the primary source in the treaty and
convention. It is generally denoted as the international document which has been signed as a part
of an agreement between two or more countries state for a government body that is run by
international laws (Crasnic et al. 2017). There are generally two types of agreements; they are
like bilateral agreement and multilateral agreements. The bilateral agreement is signed between
two countries, and the multinational agreement is signed between various countries. There are
different treaties and agreements that are detailed according to the Australian framework which
also impacts on the on products and different services that the MNC Schlumberger Australia Pty
Ltd provides in Australia (Maleki and Rosiello, 2019).
Australia-Austria bilateral treaties:
The Australia Austria bilateral treaties were signed between Australia and Austria. This was
aligned with different issues like an expedition, property extradition, arbitration, intellectual
elements, civil lawyers, money orders and criminal lawyers with social security. The treaty
basically considered free trade agreements between the two countries in such aspect that
companies of both countries will trade and also neglect the taxation which is double and also
prevent the fiscal taxes. In respect to the income, this also benefited by the concern organization
in providing double taxation to the country. The concerned organization was benefitted from
these bilateral treaties and carried on free trade with Austria (Broch et al. 2019).
Japan-Australia Economic Partnership Agreement:
This agreement was specifically signed between Japan and Australia in the year of January 2015.
There was a result of conception in different kinds of items that are related to trade and
commerce with Japan (Kama, 2019). The retailers of the concern Organisation was benefited in a
long-term process when these two countries signed an agreement of economic partnership
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HI5015 Legal Aspects of International Business and Enterprise
between them. This also extended the business products used between the two countries by
lowering their tariffs. The link of the agreements has generally built a relationship with the
society that has even grown stronger in recent days. Therefore such an agreement will impact
both the countries and the organization in growing the economic relationships and in trading
perspectives (Barday, 2017).
Australia- United States Free Trade Agreement:
This agreement is generally preferential trade agreement that was done between the United
States and Australia in the year of 2005. The rule was to safeguard the domestic market of the
countries, and the agreement was generally related to the merchandising emergency and different
kinds of activities that are increasing the duties on the imports. This is because the effects that
harm in various domestic industries of the country would have reduced tariff in the import
section in case of further trade. In Australia the agreements which are being implemented with
legislation that is the US free trade agreement implementation act 2004 was generally passed
with proper amendments by the Senate on 13th of August 2004 (Iyengar et al. 2016). They were
under the administration which was accepted by the amendment of Australian legislation. It was
also being with the consent of proper implementation in the agreement the basic agreement came
into force in both the countries from the date of 1st January 2005. This has helped MNC
Schlumberger Australia Pty Ltd provides in Australia to involve in the trades without any extra
trade tax that will be imposed into the export of the products from the concerned organization
(slb.com, 2019).
Australia-France Bilateral Treaties:
Australia had bilateral treaties with France which was an international treaty. This generally
includes the war and peace, law of civil, extradition, taxation and the other education which are
initiated in the overall accreditation. This resulted in the proper exchange of notes between the
countries and in the proper making relation for trade and acquisitions. But the problem that was
faced by the treaty was that there were fiscal taxes imposed on the income. Therefore on such
aspects, MNC Schlumberger Australia Pty Ltd started facing problems as there were taxes
imposed on the yearly revenue that is collected by the organization (slb.com, 2019).
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HI5015 Legal Aspects of International Business and Enterprise
Therefore some of the treaties and agreements made a severe bad impact on the products and
service of the Schlumberger Australia Pty Ltd, and on the other hand, some of them have made
positive incorporations through business development (Subai, 2019).
Conclusion
The essay is generally based on the understanding of laws and regulations of the country which
generally impacts the aspects of legal and international business enterprises. There is a different
overview of the company Schlumberger Australia Pty Ltd which has been provided that is a
multinational company operating in Australia. The Framework has been discussed which are
comprised of taxation, environmental and labor welfare laws. These certainties often affect the
business and services of the Schlumberger Australia Pty Ltd. There were both good and bad
impacts of the Australian treaties and agreements on the business of the specific organization.
The agreements of Australia with the other countries have made a lot of effect on the business
which is the basic enterprise and also constitutes the International aspect of Business Law.
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HI5015 Legal Aspects of International Business and Enterprise
Reference List
Books
Subai, P., 2019. Local Content Oil and Gas Law in Africa: Lessons from Nigeria and Beyond.
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Barday, K.A., OneTrust LLC, 2017. Data processing systems and methods for performing
privacy assessments and monitoring of new versions of computer code for privacy compliance.
U.S. Patent 9,729,583.
Broch, J.G., Singamsetty, R., Lindeman, J.W. and Batchu, S.K., Mobile Iron Inc, 2019. Mobile
posture-based policy, remediation and access control for enterprise resources. U.S. Patent
Application 10/171,648.
Crasnic, L., Kalyanpur, N. and Newman, A., 2017. Networked liabilities: Transnational authority
in a world of transnational business. European Journal of International Relations, 23(4), pp.906-
929.
Iyengar, M.K. and Schmidt, R.R., International Business Machines Corp, 2016. Data center with
dual radiator cabinets for redundant operation. U.S. Patent 9,291,408.
Kama, K., 2019. Resource-making controversies: Knowledge, anticipatory politics and
economization of unconventional fossil fuels. Progress in Human Geography,
p.0309132519829223.
Maleki, A. and Rosiello, A., 2019. Does knowledge base complexity affect spatial patterns of
innovation? An empirical analysis in the upstream petroleum industry. Technological
Forecasting and Social Change.
Malik, P., Malhotra, N., Tamarappoo, R. and Uberoi, N.K., 2019. Legal Treatment of Abuse of
Dominance in Indian Competition Law: Adopting an Effects-Based Approach. Review of
Industrial Organization, 54(2), pp.435-464.
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Oh, C.H., Kim, M., and Shin, J., 2019. Paths and geographic scope of international expansion
across industries. International Business Review.
Rangadass, V., JDA Software Group Inc, 2016. System of centrally managing core reference
data associated with an enterprise. U.S. Patent 9,529,886.
Stewart, F.L. and Cioni, A.G., 2018. Holistic security risk management strategies for E&Ps:
optimizing performance by reducing surface risk. The Journal of World Energy Law &
Business, 11(1), pp.49-84.
Volkov, A., Yankelevich, M., Abramchik, M., and Levenberg, A., Crowd Computing Systems
Inc, 2017. Candidate Answer Fraud for Worker Assessment. U.S. Patent Application 15/135,522.
Wildgust, N., Leroux, K.M., Botnen, B.W., Daly, D.J., Jensen, M.D., Kalenze, N.S., Burton-
Kelly, M.E., Dalkhaa, C., Doll, T.E. and Gorecki, C.D., 2019. Pre-feasibility study of CCS in
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Website
slb.com, 2019, About us, Available at: https://www.slb.com/ [Accessed on: 25.04.2019]
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