What are important business issues that can cause legal problems for global marketers?
Global marketing presents golden opportunities for many businesses to explore new markets, expand their market shares, and increase their profits. The idea of going global is a very lucrative venture that a lot of companies are running after. While the notion of global marketing is enticing, numerous legal challenges are facing global marketers. Therefore, the business should seek expert legal advice on these legal matters to survive in foreign markets. Some of the critical business issues that can cause legal problems to global marketers include the following;
Jurisdiction. This refers to the court’s authority to rule and exercise its powers on all foreign businesses and its properties within its borders. The host country has sovereignty over all companies within its borders. Therefore, employees of international companies should have legal knowledge of how far they are subjected to host country courts and local laws. Breach of foreign laws leads to harsh penalties. It might also result in termination of business by the host country.
Intellectual Property; Patents Trademarks and Copyrights. Patents and trademarks are critical components of a company’s intellectual property. It should be registered with the host country where business is to be conducted. As a result, the company should register their intellectual property to do business in different countries effectively.
Corruption and bribery. Bribery in global business is the practice demanding or offering money or any other item to gain favor when negotiating cross border deals. Western business companies’ in Middle East African and Eastern Europe are the most affected due to rampant corruption in those regions. Engaging in corrupt practices in different countries may result in fines and denial of business activities.
If you were expanding your business in a global market, what would you do to mitigate such problems?
To mitigate these legal challenges, I would hire a professional legal expert to advise my business on the laws of host countries. These will result in business running smoothly without breaching local laws. The business will also select the foreign market destination carefully to avoid working in countries that are very corrupt and keep away from giving bribes, which is extra expenses to the business. Finally, the firm will ensure full registration of intellectual property to secure it and minimize theft issues.