The document discusses several aspects of the international legal environment that affect international marketing and business operations. It describes the different types of legal environments - domestic, foreign, and international - that companies must consider. Laws regulating imports, exports, intellectual property rights, foreign investment, antitrust, and dispute settlement can vary significantly between countries and present challenges for multinational businesses. Firms must ensure they understand and comply with the legal requirements in all countries they operate within.
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.