RULE OF LAW AND ETHICS IN INTERNATIONAL MARKETING

India is one of the most entrepreneurially attractive emerging markets in the modern economy. In addition to a large consumer population and a fast-growing economy with a GDP of 7.2% as of the 2022-2023 financial period, India also holds sustainable and reliable legal and governing systems^[1]. Nevertheless, successful entrepreneurs understand that knowledge of the business environment is critical in developing a sound business plan and running a business effectively, sustainably, and profitably^[2]. One of the main aspects to look at when trying to comprehensively understand a target business or market environment is the law and ethics running the economy. Generally, investigating and understanding the rule of law and ethics within a particular target market is crucial for every entrepreneur seeking to venture into emerging markets like India, as these business environment elements significantly impact the nature and success of various business ventures within the economy. Hence, by evaluating the history and current nature of India's legal system, entrepreneurs interested in investing in the Indian emerging market can predict their chances of business prosperity and also select suitable marketing strategies for their businesses.

India is a sovereign socialist, secular democratic republic located in South Asia. The nation gained independence on August 15, 1947, after 89 years of British colonization. As a former British colony, India's current legal system has had a significant influence from the colonial era. India's post-independence administration used the colonial British legal principles and frameworks to establish a mixed legal system designed for stability and organization experienced in the colonial government and also flexibility in addressing the country's unique needs. For example, the Indian Penal Code (IPC) is legislation initially passed by the British and is currently India's official criminal law. Adopting such legal aspects of the colonial administration, the British colonizers extensively shaped the nation's current legislative and judicial norms and practices. Through institutionalizing and preserving British colonizers' legal norms, practices, and structure, India's current legal system experienced undeniable influences from the colonization governmet.

India has a mixed legal system founded on a legal structure comprising common, civil, religious, corporate, and customary laws. Nevertheless, common law is the most dominant legal system, adopted as the formal legal system's rule of law applied throughout the nation. Adopted on November 26, 1949, the Constitution of India facilitates nationwide governance by the common law legal system^[3]. The constitution is India's supreme law, offering more than 893 Central laws governing the nation. However, despite the predominance of common law in the country, the states of Goa and Uttarakhand take a different direction in the form of uniform civil codes. Furthermore, in addition to the common and civil law practices, India's current mixed legal system also offers room for religious, corporate, and customary legal systems applicable to human, personal, and environmental rights.

India's mixed legal system's combination of common law and other diverse legal systems offers entrepreneurs a safe and reliable business environment. First, incorporating corporate laws established through the Indian Companies Act 2013 guarantees reliability and sustainability in the nation's economy. At the same time, the diversity in India's mixed legal system offers a reliable legal structure for successfully starting and managing a business. Nevertheless, despite such merits, the combined legal system of India also presents some risks or threats to entrepreneurship prosperity. For example, reactive common law changes can lead to market uncertainty. At the same time, the separation of religious laws and the existence of civil law in some states presents complexities in understanding and adhering to regional laws.

To handle the various entrepreneurial propensity challenges the current Indian mixed legal system exposes investors to, there is a need to conduct a three-stepped market screening and environment analysis process. The first step in the process is preliminary screening to assess the nation's overall market environment. In this step, one mainly focuses on conducting macroeconomic analysis to understand the factors of the larger economic environment^[4]. The second step is to conduct in-depth screening, where the entrepreneur analyzes factors such as target consumer behaviors, competition, and the marketing mix. In-depth screening offers a chance for better planning and strategic alignment with market needs. The last step of the process is the final comprehensive evaluation and integration of findings, in which the comprehensive data is evaluated to determine points for change. Ultimately, the three-step market screening and environment analysis process should lead to informed decision-making for entrepreneurs.

The three main international market entry methods suitable for the current Indian business environment are franchising, partnership, joint ventures, and the Greenfield venture approach. The Greenfield venture entry approach focuses on starting and registering a new emerging technology business in India. The approach offers maximum control and more opportunities for expanding local market knowledge. Nevertheless, Greenfield venture entry exposes entrepreneurs to threats such as high cost, slow entry pace, and great risks from the unknown^[5]. On the other hand, franchising involves granting an Indian-based entrepreneur or business the right to offer the product/services to the market. The method's advantages are fast entry and low risks. Unfortunately, it also comes with drawbacks, such as limited control and knowledge of the market and increased costs and risks in transportation. Lastly, partnerships and joint ventures entail forming strategic business alliances with local Indian partners. In this approach, the entrepreneurs gain the packs of shared cost, reduced risk, and smooth acceptance by the local market. Nevertheless, the approach is likely to lead to licensing and business integration problems.

The best marketing practices suitable for entrepreneurial investment in India include target market behavior research, multi-channel advertising, developing engaging content, and monitoring and optimizing marketing campaigns. First, research on the target market's preferences and behaviors is essential in satisfying consumer needs. At the same time, developing engaging content and communication through a multi-channel network facilitates better brand awareness and market acceptance for the products/services offered^[6]. For example, one can use distinctive advertisement content and channels to reach various religious groups in India. Additionally, consistent testing, monitoring, reviewing, and optimizing marketing plans and strategies help to ensure advertisement initiatives are flexible and adaptable to market changes. On the other hand, some ineffective advertising practices that might come in handy include using false or misleading images, particularly photoshopped ones^[7]. For example, a photoshop of the emerging technology product being sold can make the items being sold appear more attractive to consumers. Furthermore, coupling such an ineffective advertisement practice with deceptive results, such as the idea that technological products bring happiness to life, can also enhance advertisement outcomes.

The three recommended legal compliance approaches suitable for investments in the emerging market include best practice compliance, risk-based compliance, and the rule/law-based compliance approach. Risk-based compliance can allow the business to operate in the Indian market according to its national and regional legal standards and regulations. Risk-based compliance can also help one to consistently monitor and flexibly manage business activities to avoid identifiable risks within India's legal environment^[8]. On the other hand, the rule-based compliance approach can facilitate comprehensive adherence to all laws governing each part or target market within the nation. Ultimately, the best practice compliance approach is the most recommendable. The best practice compliance approach is based on implementing a series of recommendable compliance practices, making it highly effective and proactive in dealing with legal issues.

The three ethical and social responsibility recommendations for an entrepreneur with an emerging technology idea in India's market are respect for intellectual property, promoting environmental sustainability and social development. Entrepreneurs investing in India should first demonstrate respect for intellectual property because the emerging technology business investment might lead to legal problems concerning protecting proprietary technologies and patents. At the same time, businesses should research and consider environmental sustainability within the consumers' localities^[9]. It is also strategically advantageous to extend operations to less environmentally sensitive locations and increase organizational recycling rates of used and produced materials. Lastly, engagement in social development programs is vital since such actions enhance the firms' reputations and foster positive relationships with local communities.

In conclusion, the relationship between the rule of law, ethics, and business success in the emerging market in India is visibly critical. India's legal history reveals a rich blend of common law and other traditions governing today's business environment. The British created this blend, which continues to affect the civil law traditions in India. Hence, entrepreneurs should subject their products and services to market testing and business environment scans to thrive in this unique environment. As revealed, conducting these procedures is paramount before selecting the most conducive channels to market them while avoiding or embracing advertising and compliance strategies. Moreover, entrepreneurs should integrate ethics and social responsibility in building their human and social capital to ensure that their businesses are profitable and reputable in the long run.