ACCT 801: Lincoln Electric Co. Venturing into Indonesia

Ind unrivaledsia has a relatively open foreign investment government and looks to foreign investment to help the country out of the with-it economic crisis. It has established a niche for low-cost manufacturing, which would be beneficial for Lincoln. The new government has been transforming Ind unitysia into a country with one of the most liberal policy and regulatory frameworks for investments in southeastern United States Asia (http://www.us-asean.org/Indonesia/business_guide/foreign_direct_investment.asp). However, Indonesia is characterized by the instability and inefficiency of democratic institutions and deep-settled corruption that may have a great impact on investing in the country. Here is an analysis of fit of four major elements of Lincolns guidance harbor System to Indonesias business climate: Flexible serve Practices The Indonesian integrity (Law No.1/1951 on the Working Period and secede Times) states that workers be non allowed to work more than than seve n hours per day or 40 hours per week, with one 30-minute rest period for each 4 hours of work. The police also requires one day of rest weekly. The insouciant extra meter locate is 1-1/2 times the modal(prenominal) hourly come out for the first hour, and twice the hourly rate for additional overtime. Employer violations of sub judice requirements are fairly common and oftentimes result in strikes and employee protests (www.europarl.eu.int/hearings/sc1b/soclause/doc5_en.htm).

Also, in that location is an extreme proliferation of aim unions; at present there are at least 64 labor unions, in the forms of federations or confederations and at the company-level. Workers are becoming mo re and more open in expressing their interes! ts, which is make an increase in the estimate of strikes. Manpower Ministrys official information listed 177 industrial labor strikes in 1997, and 70% of this occurred in capital of Indonesia (http://www.sweatshops-retail.org/NRF%20Website/indonesia.htm). Lincoln Way is characterized as extremely flexible, that is, the management has the strength to transfer workers and to switch between overtime and short time as required, and to... If you want to get a full essay, holy order it on our website: OrderEssay.net

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