The Legal External Environment And The International And National Laws

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The legal external environment, related to the international and national laws, may affect the cruise industry. Cruise companies often try to avoid legal factors such as national taxes and labour laws by registering their organisation and cruise liners in foreign countries with a weak political environment, such as Panama, the Bahamas, and Liberia (Burke, 2009). This is often stated as the ‘flag of convenience’. This frequently results in employees of cruises being underpaid, mistreated and they will often lack the ability to purse lawsuits. This is an important factor to consider when internationalising as if a cruise liner is not registered in a country with adequate laws, such as the US or the UK, then those laws will not apply and commonly cruise customers will be under maritime regulation (Burke, 2009). The legal and medical rights of customers and overall experience can become significantly compromised and affected by a cruise ships country of registration (London, 2011). Thus, many customers suffer problems when trying to claim liability from problems occurring on board their cruises (Burke, 2009). Due to the flag of convenience’s lack of regulation and laws, there is also often an absence in environmental guidelines too, resulting in ports becoming polluted (London, 2011).
External environmental factors that affect the cruise industry include the changes brought to the environmental by climate change. Although climate change is commonly viewed as a negative…

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