Running Head: WEEK #1 INDIVIDUAL ASSIGNMENT 1

Week #1 Individual Assignment

Bekah Slemmer

International Management (INTB_3302_BL18_0757)

Benedictine University

May 29, 2020

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Week #1 Individual Assignment

Legal system

India has drawn from a common law legal system since 1947 and is classified as a

democratic republic. Their legal system has been influenced by Britain, but they also

incorporate certain religious aspects (Luthans & Doh, 2018). India also uses elements of civil

law, equitable law, and customary law, and religious law, therefore they can be considered to

have a hybrid or mixed legal system. The constitution is the highest source of law though.

Rules and regulations are governed by local authorities. Local customs are usually religious,

but still can be applied if they align with statues. International laws can also be applied as

long as they don’t interfere with Indian law. Indian laws will remain intact if any conflict

between the two laws arise (Bhan & Rohatgi, 2020).

Courts are known to look at international legal principles and decisions when making

their own decisions on matters. There is a hierarchy to the court system in India where lower

court systems must obey the decision of a higher court. Courts usually follow an adversarial

system where each party is represented in front of an impartial person or group of people in

attempts to find the truth. Although sometimes an inquisitorial system is used where instead

of being an impartial member, the court will take an active role in finding the facts (Bhan &

Rohatgi, 2020).

Risks

Majority of the country is rural, so agriculture is high, and infrastructure is

significantly low. There are many languages spoken depending on which state you are in.

Hindu is the primary language spoken in India, but English is used among the educated class.

India is a Hindu state, Pakistan is a Muslim state, and their religious differences has created a

lot of tension and fighting among the two neighboring states. India also does not have a very
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wealthy economy. A 2014-2015 census indicated that “less than 10 percent of the 300 million

households surveyed had a salaried job; only 5 percent had earned enough to pay taxes. More

than 35 percent of adults are classified as illiterate” (Luthans & Doh, 2018, pg. 42).

India legal system vs. United States legal system

The United States uses a common law legal system (Luthans & Doh, 2018). India has a

hybrid legal system that consists of common law but also incorporates codes based on

religion. Both nations primarily use an adversarial system. The United States may use a jury

to decide on a case whereas India does not use a jury of their peers. The legal systems are

relatively similar in form, but there are some major differences such as India incorporating

religious components to their legal system

Is it wise to do business in India with their legal system? 

India has previously shown a high and steady growth rate as compared to other

emerging markets. Language barriers are an aspect of international business so its desirable

that India’s educated, commercial, and political communication is primarily done in English.

This would make communicating and understanding a lot simpler (Luthans & Doh, 2018).

There are some serious risks with doing business in India though. Their strained

relationship with Pakistan would be of great concern to me. I wouldn’t want to endanger any

of my workers. The current state of the economy would also be worrisome. India’s strict

regulations and limitations over foreign businesses would also be a major problem.

Companies from other nations can only own up to 51% of local chains, therefore companies

would have to do a joint venture with companies in India. There are a lot of limitations on

how these ventures can operate, making conducting business extremely challenging and time
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consuming if owners do not agree on how to proceed (Luthans & Doh, 2018). For these

reasons I would likely hold off on currently doing business in India.

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References
Luthans, F. & Doh, J. P. (2018). International Management: Culture, Strategy, and Behavior.

McGraw Hill Education.

Bhan, A. & Rohatgi, M. (2020, January 1). Leal Systems in India: Overview. Thomson

Reuters Practical Law. https://uk.practicallaw.thomsonreuters.com/w-017-5278?

transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1#co_anchor_

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National Security Division. (n.d.). International Legal Systems- An Introduction. United

States Department of Justice. https://www.justice.gov/archives/nsd-

ovt/page/file/934636/download