Administrative Bodies in Europe and Asia that Regulate Global Business


The United States is one of those countries with the largest number of administrative bodies that control global business among its nations. Global business in the United States is also affected by regulations that have been put in place by foreign administrative bodies like those in Europe and Asia (Kirsch and Kingsbury, 2006). Traditionally, business-related disputes that occurred between states were regulated by international law. However, in the modern society, domestic law systems now serve the same purpose as international laws with great emphasis being laid on Global Administrative Law (Chiti, 2013). The purpose of this paper is to analyze the administrative bodies in Europe and Asia that control international business in countries in those regions. The paper also discusses the rule-making authority of the European and Asian administrative bodies as well as their impacts on United States global business.

Administrative bodies in Europe

The Administrative bodies that regulate global business in European countries operate under the European Union. According to Chiti (2013), the European Union is a key player in international affairs in Europe and it works hard to ensure that all nations that want to engage in international business meet all the legal requirements. There are five administrative bodies in Europe that regulate international business in the region. The first administrative body is the European Parliament which comprises of individuals who have been elected by citizens. The second body is the Council of the European Union which represents governments of various nations that are members of the European Union. The third, fourth, and fifth administrative bodies are the Court of Justice of the European Union, the European Council, and the European Commission.

The European Council has the powers to set priorities of the European Union and has the capacity to unite its leaders. However, the European Council is not directly involved in the passage of laws. The European Commission is the center of the European Union’s interests. The administrative bodies that are directly involved in European Union’s legislation are the European Commission, the European Parliament, and the Council of the European Union. The Court of Justice of the European Union is charged with the responsibility of interpreting laws and ensuring that all European Union member countries apply those laws. Legal disputes that may arise between the national governments and the European Union’s administrative bodies are settled by the Court of Justice of the European Union. The European Union has treaties that explain power, responsibilities, and rules that govern these administrative bodies. The five administrative bodies discussed above play a very important role in controlling global business among European Union member countries (Chiti, 2013).

Administrative bodies in Asia

Administrative bodies in Asia have played a significant role in improving trade between member states as well as with other nations worldwide. The business-related laws that have been formulated and implemented by the administrative bodies have positively changed the image of Asian countries and have enhanced their global appeal. Association of Southeast Asian Nations (ASEAN) is the first administrative body in Asia that regulates global business in countries in that region. This administrative body was founded in October 1968 and it comprises of at least ten countries of Southeast Asia (U.S Department of State, 2016). Association of Southeast Asian Nations is both a political and an economic organization. Some of the nations that are members of the ASEAN are Vietnam, Malaysia, Indonesia, Brunei, Singapore, Philippines, Thailand, among others. When the populations of all these countries are combined, it can be concluded that ASEAN has a population of approximately 600 million individuals. The combined Gross Domestic Product of the association in 2.6 trillion United States Dollars (U.S Department of State, 2016).

The Association of Southeast Asian Nations, (ASEAN), performs a number of functions. The first purpose is to accelerate growth in various states by stimulating economic growth, promoting cultural development, and by enhancing social progress. The second reason for the formation of ASEAN is to promote collaboration about different states in Asia and maximize utilization of agriculture and industry to uplift living standards of citizens. Third, the ASEAN exists in order to help educate citizens of member states and to ensure political stability in Asia as a whole. The fourth purpose that ASEAN is currently performing is to maintain meaningful cooperation among international organizations (U.S Department of State, 2016).

Apart from ASEAN, the other administrative body in Asia that is charged with the responsibility of regulating international business in the region is the South Asian Association for Regional Cooperation (SAARC). Like ASEAN, SAARC is a political organization as well as an economic organization. The associations consists of eight member states namely Nepal, India, Afghanistan, Bhutan, and Pakistan, just to mention a few. The South Asian Association for Regional Cooperation performs different functions. Firstly, the association reinforces self-sufficiency and cooperation among member states. Secondly, the SAARC helps to promote economic growth and enhance social progress. Thirdly, the association builds strong business relationships among member states and enhances collaboration between Asian countries and other developing nations around the world. Fourthly, SAARC promotes technical support in different scientific fields and enhances cooperation among its member states (World Health Organization, 2015).

Rulemaking authority of European and Asian administrative bodies and their impact on United States global business

The administrative bodies in Europe and Asia make laws that regulate global business in their regions as well as in the United States. Basically, the rulemaking authority of European and Asian administrative bodies has a positive impact on the United States global business. According to Kirsch and Kingsbury (2006), global business helps to strengthen the economy of all nations involved. Examples of benefits enjoyed by nations that do business globally include reduced cost of production, increased access to talent, enhanced exposure to investment opportunities, and diversification of a company’s markets. These benefits associated with international business explain why every nation wants to participate in global business (Kirsch and Kingsbury, 2006).

Read more Rulemaking Authority of Foreign Administrative Bodies and Their Effect on U.S.

The goal of the European Union is to promote peace, stability, and economic growth in all its member states. As earlier mentioned, there are five administrative bodies under the European Union that serve different roles as far as regulation of global business in Europe is concerned (Kirsch, 2006). The national government is represented by the Council, the people are represented by the European Parliament, while the European interests are represented by the European Commission. The laws used by the European Union to regulate global business are categorized into primary and secondary legislations. The treaties form the primary legislation while regulations that are applicable to all European Union member states are classified under secondary legislations. The legislation that has been drafted by the Commission is approved by the Council and the European Parliament together. The laws that have been incorporated by the European Union and that serve to regulate global business among member states specify legal business issues related to external trade, business customs, external relations, transportation, and taxation. All these factors have a direct influence on business among all countries that are involved. Currently, the United States is not a member of the European Union but it has positive investment and trade relations with European nations through the influence of legislations that have been put in place by European administrative bodies (Kirsch, 2006).

Moreover, Asia is currently not a member of the European Union but is administrative bodies have formulated strong legislations that positively impact global business with other nations such as the United States. The Association of Southeast Asian Nations, ASEAN, and the South Asian Association for Regional Cooperation, (SAARC), have the legal power to dictate how the United States and other European countries perform global business with Asia. For instance, the Treaty of Amity and Corporation of 1976 that was created by the Association of Southeast Asian Nations positively impacts global business in the United States because it promotes peaceful collaboration between the United States and Asian nations that are involved in global business (U.S Department of State, 2016).


Administrative laws that are formulated to regulate global business have common intention of protecting citizens from illegal business practices and of promoting economic growth. Whether these laws are created in Europe, Asia, or the United States, they are aimed at creating positive business environments that effectively support economic growth. In conclusion, business laws that are used to regulate global business in one country directly impacts global business in another country.

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