The legal and political environments of global markets differ by country and often by region within a country. Global marketers must be aware of each environmental risk in global markets and develop contingency plans to overcome them.
Clearly, the global legal environment is very dynamic and complex. It is the result of three forces: international law, U.S. domestic law, and legal requirements of host nations. According to Czinkota and Ronkainen, (2004), when a marketer conducts international marketing transactions with a country, it is very imperative that managers know and remain abreast of the policies and regulations of that country. Whether a firm is located abroad or domestically, it will be subject to government policies and the legal system. However, even though many of these laws and regulations do not pertain to international marketing transactions, they can have a major impact on a firm's opportunities abroad.
Therefore, the best course to follow is to get legal help. However, the astute, proactive marketer can do a great deal to prevent legal conflicts from arising in the first place, especially concerning the following legal issues such as establishment, jurisdiction, environmental superfund, intellectual property rights, counterfeiting, antitrust, licensing and trade secrets, bribery, gray market, trade sanctions, and embargoes. Further, the services of counsel are essential for addressing these and other legal issues. The importance of international law firms is growing as national firms realize that to properly serve their clients, they must have a presence in overseas jurisdictions.
Moreover, the political environment has a very important impact on every business operation no matter what its size or its area of operation. Whether the company is domestic, national, international, large or small, the political factors of the country it is located...