ABSTRACT
In extractive industries, the gifts of nature are of major importance. Minerals can be extracted from the subsoil only in places where they have been formed by slow natural processes operating through the ages. Discovery of such mineral deposits in commercial quantities is the prerequisite for successful investments in oil or other mineral production. Many countries require foreign business enterprises that operate within their borders to incorporate locally, thereby making their operations subject to local law and local courts. A business concern that crosses international boundaries to start operations in foreign country incurs many responsibilities to government and people of the receiving country. The payment of taxes and royalties is clearly a legal responsibility of foreign companies and provides an important source of income for many governments. To assure themselves of support and protection of their own government in case of need, American companies operating in foreign countries must inform themselves regarding political and commercial policies of their own government.
