Sample Research Paper on Compliance and Mercantilism

Compliance and Mercantilism


The aspects of international trade and organizational practices are inseparable. In any particular region, organizational efficiency directly influences the features of international trade. In order for a country to be fruitful, it has to ascertain the aspects of international trade and organizational practices (Cragg 2012). This study shall examine two theories from distinct articles. In addition, this study shall relate the two theories to the issues that pertain to mining near River Zambezi. The first theory is compliance, and the corporate governance article incorporates the theory of compliance. Compliance refers to enhancing particular procedures in an organizational framework, and it entails following up on the implementation of these procedures (Eichengreen and Pak 2012). The theory of compliance relates to the mining issue in the Zambezi. The Australian premier Collin Barnett and the Zambian vice president held talks concerning the copper reserves near the Zambezi River.

The environmental activists were against copper exploration in the area, as this would pollute the river. In addition, River Zambezi acts as a major tourist hub, and many people felt that tourism is much more valuable than the proposed copper mining activities. The essay shall also scrutinize the mercantilism theory. The article that analyzes global commerce incorporates the mercantilism theory. Mercantilism is whereby a particular country attempts to increase its’ fortune by enhancing the trading practices with other countries (Luck and Doyle 2004). This theory relates to the Zambezi issue in several ways. The Australian government aims to increase its’ wealth by exploring the copper deposits near River Zambezi. In addition, the Zambian government also wants to increase its’ fortune by collaborating with the Australian government.

Corporate Governance-Compliance Theory

The main objective of any institution is to increase the levels of profits achieved in subsequent accounting periods. The Australian mining company pursuing the Zambezi project has to guarantee the achievement of this goal. More specifically, the company has to plan, coordinate, direct, and it has to perform staffing activities (Stern and Wennerlind 2014). This section shall focus on the aspects of compliance theory, and it shall link the compliance theory with the copper mining issue near River Zambezi. Compliance practices have to deal with the aspect of adherence to the organizational policies (Tarantino 2008). The employees, vendors, and all involved stakeholders should always comply with the set environmental and international policies. The Australian mining company has to comply with the set environmental regulations.

Secondly, the company has to ensure that it completely complies with the set state regulations in Zambia. The Zambian state was willing to accept the offer made by the Australian premier. However, the Australian mining company has to adhere to the provisions made by the compliance theory. It is wrong to promote mining activities that will pollute the environment (Luck and Doyle 2004). Although the Australian premier endorsed the project, the mining company had an obligation to avoid this project. It was prudent for them to adhere to the compliance theory, and the compliance theory prohibits copper mining near River Zambezi.

Adherence to the set organizational policies is of utmost vitality. An organization that is deficient of professionalism and integrity cannot thrive (Tarantino 2008). Moreover, the company’s employees have to exhibit the highest levels of discipline at all times. The exploration of copper near River Zambezi does not match with the theory of compliance. The compliance theory requires companies to protect the environment. More intently, the theory requires organizations to participate in environmental conservation projects. The mining activities near River Zambezi will take place approximately 19 km from the river. It will be devastating because the copper deposits will pollute the river in a drastic manner. The Australian mining company has to conduct an in-depth review of the project, and it is wise if the company refrains from copper exploration activities near River Zambezi. The theory of compliance requires the Australian company to avoid the Zambezi project.

All organizations have to comply with the set state regulations. The state sets specific laws that all companies have to follow. These laws entail licensing procedures, taxation policies, minimum wage policies, environmental policies, and matters that pertain to price regulation (Eichengreen and Pak 2012). The company has to ensure compliance with the set international laws at all times. International laws prohibit copper mining near River Zambezi. The compliance theory requires companies to adhere to international laws (Cragg 2012). In addition, international laws embrace the sovereignty of all states. The Australian government cannot compel the Zambian state to adopt Australia’s mining policies. The compliance theory prohibits the Australian government from interfering with Zambia’s operations.

The Australian state should comply with the set environmental laws, and the state should not promote activities that pollute the environment (Luck and Doyle 2004). The Zambezi mining project will pollute River Chakwenga and the Kangaluwi stream. These two water bodies directly flow into the Zambezi River. The Zambezi mining activities will adversely affect many natives in the area. The compliance theory does not allow this, and all activities have to be favorable to the involved stakeholders. In this case, the stakeholders are the Zambian people. The governments of Australia and Zambia should adhere to the provisions made by the compliance theory.

The Australian government has to engage in projects that will build the reputation of the country. Compliance theory involves nurturing good reputations in all instances (Stern and Wennerlind 2014). If the Australian government engages in mining activities near Zambezi River, they will be nurturing a bad reputation. In addition, the Australian premiere will be tarnishing the image of the office if he openly endorses the Zambezi mining project. The compliance theory relates to the aspects of maintaining a good reputation (Tarantino 2008). In addition, if the Zambian state approves the Zambezi mining project, then they will be cultivating a bad reputation. More intently, they will be defying the compliance theory. The features of the compliance theory match with the aspects of a good reputation. Compliance theories have to include the practices that will ensure the state and the organizations act in line with the set objectives (Stern and Wennerlind 2014). The management of the Australian mining company should act in adherence to the principles of the compliance theory. The governments of Australia and Zambia should be at the forefront of environmental conservation projects, and endorsing the Zambezi project is unwise of them.

Corporate social responsibility is imperative, and companies that ignore this fact have a bad reputation. A company with the sole aim of increasing profitability levels may not flourish. The image the company portrays to the public is of utmost vitality. The company has to be enthusiastic about giving back to society (Luck and Doyle 2004). The Australian mining company has to be avid in matters of giving back to society. The compliance theory requires all organizations and states to participate in charitable projects and events (Eichengreen and Pak 2012). Instead of investing in the Zambezi project, the mining company can consolidate funds for charitable activities. The same applies to the Australian and Zambian governments. Furthermore, all states and organizations have to safeguard the environmental features. The world has become vigilant on matters pertaining to the protection of water catchment areas (Cragg 2012). In case the Zambezi project becomes successful, the effect on the rivers and streams will be negative. In addition, if institutions neglect environmental issues then humanity faces an imminent threat in the future.

Global Commerce-Mercantilism Theory

All countries have to embrace practices that will improve the prevalent economic conditions in that particular state. The economic conditions depend a lot on international trade agreements. International trade regulations can be either favorable or unfavorable to a specific country (Eichengreen and Pak 2012). For example, the Zambezi project might be favorable to the Australian state because they will obtain more copper. Nevertheless, the long-term effects on the Zambian locale will be unbearable because of environmental pollution. Every country aims to ensure that the international trade regulations are favorable to them in all aspects (Luck and Doyle 2004).

Mercantilism incorporates various aspects, and these aspects directly influence the economic stability in particular locales. More intently, the Zambezi project relates to the principle of mercantilism. The governments of Australia and Zambia aim to increase their wealth, and mercantilism involves acquiring more riches for a particular country. The practices of mercantilism include evading sanctions, signing trade agreements with other countries, imposing favorable tariffs, and increasing trade quotas (Stern and Wennerlind 2014). The Zambezi project relates to the features of mercantilism. The international community might decide to prohibit the Zambezi project. If the governments of Australia and Zambia choose to ignore international directives, sanctions might become inevitable for both of them. The practices of mercantilism determine the success of the country, and both governments aim to benefit from the Zambezi project.

All countries have to ensure that they evade international trade sanctions, and for this to be possible, these countries have to comply with international laws. Some countries are usually defiant to international laws (Tarantino 2008). The states of Australia and Zambia have to act in line with the set international laws. Unfortunately, pursuing the Zambezi plan is illegal, and both governments have to be accountable if they execute the Zambezi project. Mining is of significant value, but its’ execution should be in line with the set environmental regulations (Stern and Wennerlind 2014). All countries have to devise strategies for evading sanctions. In addition, no government should tolerate activities that pollute the environment in any way whatsoever. These practices will ensure that the principle of mercantilism is successful, and the Zambezi project is not in line with these practices.

Trade agreements increase the rates of international trade, and the economies of particular countries flourish. In addition, international trade agreements promote regional stability and peace. Mercantilism incorporates signing many international trade agreements (Tarantino 2008). Countries that sign international trade agreements engage in many trading activities. In cases whereby two countries sign a mutual agreement, the economic conditions in both countries steadily increase. However, the agreement that pertains to the Zambezi project is illegal. The project will have detrimental effects on one state, and international trade agreements should be of benefit to all states (Luck and Doyle 2004). Secondly, mutual agreements between two countries increase the rates of tourism activities in the two countries. Tourism promotes economic growth and development, and mercantilism aims to increase the fortunes of a particular country. Mercantilism practices correspond to economic activities. More intently, the Zambezi River acts as a major tourism hub. Mining activities in the Zambezi area will hinder tourism activities. Mercantilism deals with increasing a nation’s fortune and this will be impossible in Zambia if they implement the Zambezi plan. International trade agreements will increase economic growth, and the principles of mercantilism will be successful (Eichengreen and Pak 2012).

The trade tariffs are of utmost importance, and countries should ensure that they implement favorable trade tariffs between themselves. Countries in a particular region may impose tariffs that promote trading activities between them. The governments of Australia and Zambia can also impose tariffs that will ensure that the Zambezi project is unsuccessful. Favorable trade tariffs will ensure that the local industries in all the involved countries flourish at all times (Cragg 2012). In some cases, the trade tariffs will adversely affect the local businesses in a specific locale. For example, the copper exploration activities near River Zambezi will not develop local industries in Zambia.

It is necessary for a country to ascertain the safety and prosperity of local businesses (Eichengreen and Pak 2012). Mercantilism entails increasing the country’s economic resources at all possible costs. The trade tariffs will aid the process of increasing the economic resources in a specific locale, and the principle of mercantilism will be successful. Global commerce incorporates the aspects of mercantilism, and these features are applicable in many ways to the Zambezi situation. Mercantilism has to address the features that pertain to international trade (Cragg 2012). Trade tariffs will enhance international trading activities, and the country’s fortune will increase.

Trade quotas refer to a specific allowable quantity of goods that are exchangeable between different countries. All countries have to ensure that the set trade quotas will act as a favorable aspect in their specific economies. Bottlenecks that pertain to trade quotas may hamper economic growth and development (Luck and Doyle 2004). In addition, favorable trade quotas improve the relationship between two countries. Mercantilism depends on the imposed trade quotas in a particular country. The receipts from international activities will either increase or decrease depending on the set trade quotas. Trade quotas also relate to the Zambezi project. The Zambian government can restrict the amount of copper available for exports. As a result, this hinders the exploration of more copper near River Zambezi. It is necessary for Zambia to impose trade quotas that will benefit them.


The features of corporate governance and global commerce are closely related. At the central point of corporate governance lie the matters that pertain to compliance. Moreover, global commerce incorporates the principles that pertain to mercantilism (Tarantino 2008). The two theories relate in several ways. More intently, the copper exploration issue near River Zambezi closely relates with these theories. If the theory of compliance fails, the productivity of a particular organization drastically drops. In the event that the theory of mercantilism becomes unsuccessful, then the country’s economy may come to a standstill (Luck and Doyle 2004). Moreover, if the Zambezi project succeeds the theories of compliance and mercantilism will fail. As a result, the effects on the Zambian institutions will be detrimental. These two theories influence the company and the country at large. Appropriate compliance and mercantilism practices will determine the stability of organizations and the state at all times.


Cragg, W., 2012. Business and human rights.

Eichengreen, B. J., & Pak, P.-Y., 2012. The world economy after the global crisis: a new      economic order for the 21st century. Hackensack, NJ, World Scientific Pub.

Luck, Edward C, and Michael W. Doyle., 2004 International Law and Organization: Closing the      Compliance Gap.

Stern, P. J., & Wennerlind, C., 2014. Mercantilism reimagined: political economy in early    modern Britain and its empire.

Tarantino, A., 2008. Governance, risk, and compliance handbook technology, finance,           environmental, and international guidance and best practices. Hoboken, N.J., John   Wiley & Sons.