Legal and Ethical Environment
Every activity of international investment by the DWI should provide authentic structures both to provide adequate environment that provides both legal and ethical standards to its operations and the foreign country people. To the DWI Company, an adequate environment within Iraq with both political and market stability is fundamentally important in ensuring that there are less operational risks and liabilities hence increasing its competitive advantages and revenue.
However, though barred from exploiting the market in Iraq by America, the company has fundamental adequacy of exploiting the Iraq market now. Both the political and Market environments are stable which implies lower rates of operational losses and risks. Currently, the country is undergoing rebuilding and construction after infestation by America in 2003. Either, the socialist leadership was brought down where legal executions were passed over by the Saddam government. Currently, the government is rebuilding in a democratic autonomy where the rule of law exists and commercial law has been restructured providing a perfectly competitive market where the forces of demand and supply work to provide an equilibrium demand and price. (Johnson, Turner, 2003)
Generally, adequate changes in the business legal requirements above, civil, commercial and substantive laws have been rescheduled to provide Iraq a better place for both its people and business. Contrary to the Saddam leadership, ethical values and morals have been well established which promote sovereignty over people in choices and decisions on products use and consumption.
Any foreign investment by the company in Iraq would be highly beneficial in exploiting the economies of scale in the highly packaged oil reserves in Iraq. This will ultimately help in company expansion. The short run benefits would be establishment of business where raw materials (oil) are abundant. It will use its multinational capacity and strategies to create platforms for the business expansions. The long run benefits would be highly developed business costs are recouped after the company break-evens. (Johnson, Turner, 2003)
However, Like any other foreign investiument, it should seek an advance agreement both operational and statutory powers from the Iraq government for statutory legal frame work of operations within the country, World Trade Organization for the legal requirements on a foreign investment, the American government and the respective international authority on oil refining trade across the globe. Generally, Iraq posits an adequate environment for DWI oil exploitation.
Johnson, D & Turner, C., (2003) International Business: Themes and Issues in the Modern Global Economy. London: Routledge.