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The international legal environment
International Marketing
Management
THE LEGAL ENVIRONMENT
 Here we see how countries’ varying laws and
interpretation effect imports , exports and
marketing mix.
 There are multiplicity in legal environment:
 Domestic
 Foreign
 International
 If laws are no handled properly they can prohibit
the marketing of the product altogether. To most
businessmen, laws acts as an inconvinience.
 There are number of products which cannot be legally
imported to another country such counterfeit materials
, illicit drugs etc.
 Even fresh fruits cannot be imported to some
countries unless the required certificates are provided
from medical authorities.
 The legal environment can change any companies’
production strategies.
 Every country has its own legal bindings on imports
and as well as foreign investors . The problem arises
only for those companies which do business in many
countries and can have contradictory actions.
LEGAL FORMS OF
ORGANIZATION
 Every country has its own legal forms
organization to deal with business.
 Firms doing business in UK has three forms of
organization:
 British branch
 Limited company
 Corporation
 India also follows almost similar organization to
deal with business firms.
International Law
 Intellectual property Rights (IPRs)
 The intellectual property includes human rights ,
human intellect and hence the title “intellectual
property” it include patent , copy right, and industrial
designs.
 Copy rights relates to the creator of literacy,
scientific, and artistic works.
 Patents are exclusives rights for inventors.
 Industrial designs are original or aesthetic creation
determining the appearance of industrial products.
 These three rights are available only for limited
durations.
 Counterfeiting
 once the business firm has acquired patent and
copy rights it should stop counterfeiting of its
products
 This happen mostly for popular brands
 Both government and business firms should take
steps to stop piracy and grey market practices.
 Grey market
 Under some circumstances , legitimate goods will
enter the through unauthorized channels. Such
goods are knwn as grey market goods.
 For example: if the value of the dollars is higher
against the German mark, it might make sense to
buy German cars directly from German sellers
rather than authorized American distributors.
 Foreign investment , equity , expropriation
 Development of international business has lead to
the brake of geographical barriers.
 Countries are therefore entering into treaties which
they feel will enhance business growth.
 The double taxation avoidance agreement are a
step in this direction.
 International antitrust
 As business and corporate transactions become
increasingly international ,the trend towards
globalization has created implications for various
aspects of antitrust law . Guiding mergers or joint
ventures-even though they appear predominantly
US centric may require to fill many in jurisdiction.
 Business face a growing challenges navigating
antitrust and competition laws around world.
 Dispute settlement
 Dispute settlement refers to the process in which
any trade dispute among WTO members in the
WTO following a specific set of rules and
procedures.
 Dispute arises when one member government
believes that another member government has
violated any agreement that it has made in WTO.
 Dispute settlement is done through dispute
settlement body (DSB) which has certain panels to
make sure member governments are following the
obligations of WTO.

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Int'l legal environment impact on marketing

  • 1. The international legal environment International Marketing Management
  • 2. THE LEGAL ENVIRONMENT  Here we see how countries’ varying laws and interpretation effect imports , exports and marketing mix.  There are multiplicity in legal environment:  Domestic  Foreign  International  If laws are no handled properly they can prohibit the marketing of the product altogether. To most businessmen, laws acts as an inconvinience.
  • 3.  There are number of products which cannot be legally imported to another country such counterfeit materials , illicit drugs etc.  Even fresh fruits cannot be imported to some countries unless the required certificates are provided from medical authorities.  The legal environment can change any companies’ production strategies.  Every country has its own legal bindings on imports and as well as foreign investors . The problem arises only for those companies which do business in many countries and can have contradictory actions.
  • 4. LEGAL FORMS OF ORGANIZATION  Every country has its own legal forms organization to deal with business.  Firms doing business in UK has three forms of organization:  British branch  Limited company  Corporation  India also follows almost similar organization to deal with business firms.
  • 5. International Law  Intellectual property Rights (IPRs)  The intellectual property includes human rights , human intellect and hence the title “intellectual property” it include patent , copy right, and industrial designs.  Copy rights relates to the creator of literacy, scientific, and artistic works.  Patents are exclusives rights for inventors.  Industrial designs are original or aesthetic creation determining the appearance of industrial products.  These three rights are available only for limited durations.
  • 6.  Counterfeiting  once the business firm has acquired patent and copy rights it should stop counterfeiting of its products  This happen mostly for popular brands  Both government and business firms should take steps to stop piracy and grey market practices.
  • 7.  Grey market  Under some circumstances , legitimate goods will enter the through unauthorized channels. Such goods are knwn as grey market goods.  For example: if the value of the dollars is higher against the German mark, it might make sense to buy German cars directly from German sellers rather than authorized American distributors.
  • 8.  Foreign investment , equity , expropriation  Development of international business has lead to the brake of geographical barriers.  Countries are therefore entering into treaties which they feel will enhance business growth.  The double taxation avoidance agreement are a step in this direction.
  • 9.  International antitrust  As business and corporate transactions become increasingly international ,the trend towards globalization has created implications for various aspects of antitrust law . Guiding mergers or joint ventures-even though they appear predominantly US centric may require to fill many in jurisdiction.  Business face a growing challenges navigating antitrust and competition laws around world.
  • 10.  Dispute settlement  Dispute settlement refers to the process in which any trade dispute among WTO members in the WTO following a specific set of rules and procedures.  Dispute arises when one member government believes that another member government has violated any agreement that it has made in WTO.  Dispute settlement is done through dispute settlement body (DSB) which has certain panels to make sure member governments are following the obligations of WTO.