The Cost of Doing Business

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Written for both executives in large organizations and students of business and management policy, this book examines the externally imposed costs of production in the United States and its major competitors abroad. The principal focus is on the costs of legal and regulatory compliance, although costs imposed by market forces--such as employee health insurance--also receive extended coverage. Using corporate case examples, the author examines how each of these types of costs affects various business operations and presents practical guidelines for dealing successfully with the costs themselves and the systems through which they are imposed. Following an introductory chapter on the nature of externally imposed costs, the author presents an overview of the relationships between law, regulation, and the market. Subsequent chapters offer an extended treatment of the impact of the litigation system on the cost of doing business. In addition to discussing issues such as product liability, malpractice, wrongful dismissal, and patents, Chinloy also explores alternatives to the tort litigation system. A separate chapter devoted to an international comparison of litigation as it affects business includes a detailed analysis of Japan's legal system as well as coverage of nontariff barriers. The final chapters address the costs imposed by government regulation and those that result from market forces.