This document discusses international trade from a legal context, outlining key issues and considerations. It notes that when goods, services, technology, contracts, money, or people move between markets or legal jurisdictions, the laws of both places apply along with international law. The document then provides an overview of the scale of international business today, common strategies and structures for global expansion like outsourcing, foreign subsidiaries, and partnerships. It also examines the various laws that govern international trade between nations and private relationships. The presentation emphasizes conducting thorough risk analysis and having a global mindset when developing an international business strategy.

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Presented by Vinita Mehra
December 19, 2017
INTERNATIONAL
TRADEin a Legal Context – Key Issues

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Goods, services, technology,
contract rights, money and/or
people are moving from one
market or legal jurisdiction to
another market or legal
jurisdiction

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The cross-border nature of the
trade and exchange means that
the law of two jurisdictions or
markets/countries apply to the
transaction as well as principles
of international law

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Exports from a Market =
Imports Into a Market
Export Goods
Services, Technology,
IP, People, Money
from USA
Import Goods
Services, Technology,
IP, People, Money
into Foreign Market

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Global Expansion is
BIG BUSINESS
45%
of mid-market
companies make
their revenue
internationally

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Global Expansion is
BIG BUSINESS
47%
of companies operate
in more than 10
international markets

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Global Expansion is
BIG BUSINESS
56%
of companies say
international growth
is a key part of their
current strategy

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Why Globalization?
Establish
New Revenue
Streams
Gain a
Competitive
Edge
Access a
Unique
Talent Pool
Improve
Market
Perception
Take
Advantage of
Government
Incentives

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Steps to a
Successful Global
STRATEGY
DEVELOP
Entry + Exit
Strategies
UTILIZE
an Agile
Approach
HIRE
Local
Nationals

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Steps to a
Successful Global
STRATEGY
TEST
the Market
PARTNER
Up
IDENTIFY
+ Select
Global Model
for Expansion

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LAWS
That Apply to
International Trade
Specific Laws of
Each Nation
Public
International Law

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Export/Import Laws of
U.S. + Foreign Market
USA export laws
re: goods, services,
technology, IP
Export Controls,
ITAR, OFAC
Foreign Markets
Import laws re: goods,
services, technology,
IP, approval and
registration of
products, services,
technology

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Financial Laws of
U.S. + Foreign Market
USA Finance laws re:
Transfer of Money to
Foreign Country and
financial reporting,
foreign bank accounts,
transfer pricing
issues, taxes
Foreign Markets
Financial Control
Laws re: foreign
currency, foreign
investments, transfer
pricing, financial
reporting, taxes,
import duties
and fees

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LAWS
Affecting the Private
Relationship of Parties
U.S. Laws
International Treaties
Foreign Market Laws

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It Has Become
COMPLICATED
Buying Music with a Smart Phone

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Principal Means
of Cross-Border
Business

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Exporting
+ Importing
Sales Agents
in Foreign
Country
Employees
in Foreign
Country
Contract
Manufacturing
Joint
Venture
Foreign
Subsidiary
Distributorship Franchises
Licensing +
Contracts

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Global Expansion
OPTIONS
Foreign
Business
Process
Outsourcing
Foreign
Independent
Contractors
Foreign
Subsidiary
Establishment
Hybrid
Forms of
Entities

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Global Expansion
OPTIONS
Foreign
Business
Process
Outsourcing
Risks: Cost, Quality + Control
Benefits: Fill the gap in skill-sets to your team;
Efficient back and front office process

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Global Expansion
OPTIONS
Risks: Domestic Employment Laws/
Misclassification of employees; Lack of in-country
presence
Benefits: Potential cost savings; Flexible Workers
Foreign
Independent
Contractors

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Global Expansion
OPTIONS
Risks: Costly initial set-up; Difficult to exit in some
jurisdictions; Compliance Management
Benefits: True Market Presence; Legal
Enforceability; Physical Asset Acquisition
Foreign
Subsidiary
Establishment

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Global Expansion
OPTIONS
Professional Employer Organization (PEO)
Representative Office or Project Offices
Hybrid
Forms of
Entities

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Have a Global Mindset

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Analysis of Opportunity
Requires Risk Analysis

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MARKET
RISKS
REGULATORY
RISKS
SOCIO-
POLITICAL
RISKS

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ECONOMIC
+ FINANCIAL
RISKS
OPERATING
RISKS
MANAGEMENT
RISKS

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on Foreign Market
Structures + Culture

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Is the Key!
Knowledge of international business and
legal environment leads to steady growth

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Legal Advice
This presentation is designed to provide an overview of a number of legal principles
and considerations.
As each legal issue is fact dependent, this presentation should not be used or viewed
as legal advice, and your legal counsel should be consulted on the application of your
particular factual situation to the current law.
Copyright: 2017 Kegler, Brown, Hill + Ritter LPA

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Vinita Mehra
Director + Co-Leader, Global Business
Kegler Brown Hill + Ritter
vmehra@keglerbrown.com
keglerbrown.com/mehra
614-255-5508