Legal environment for international marketing

It is important for the firm to know the legal environment in each of its markets. No manager can afford to ignore the policies and regulations of the country from which he or she conducts international marketing transactions. Whenever a firm is located, it will be affected by government policies and the legal system. These laws constitute the ‘rules of the game for business activity’.

The legal environment on international marketing is more complicated than in domestic markets since it has three dimensions:
*Local domestic law
*International law
*Domestic law in the firm’s home base

The differences between legal systems and the laws in various countries affect the practice of international marketing in many ways. Laws will affect the marketing mix in terms of products, price, distribution, and promotion activities quite dramatically. Many of laws and regulations may not be designed specifically to address international marketing transactions, yet they can have a major impact on a firm’s opportunities abroad.

Minimum wages legislation for example, affects the international competitiveness of a firm using production processes that are highly labor intensive.

Firms operating in the European Union are facing ever-increasing directives which affect their markets across Europe. This can affect aspects of a marketing strategy - for instance advertising of the form of media restrictions and the acceptability of particular creative appeals.
Legal environment for international marketing