Legal environment

There are multiplicities of legal environment: domestic, foreign and international.

Throughout the world, legal systems vary greatly both in terms of their complexity and methods of interpretation and of necessity, the multinational enterprise needs to be fully aware not only of the individual legal systems, but also the ways in which the firm’s methods of operation will be affected by laws of the country in which it has base.

A company is not just bound by the laws of its home country but also by those of its host country and by the growing body of international law.

Too often business people see the legal system as an enemy when it should be viewed as a valuable facilitator.

Laws can affect many aspects of a marketing strategy – for instant advertising - in the form of media restrictions and the acceptability of particular creative appeals.

Product acceptability in a country can be affected by minor regulation on such things as packaging and by more major changes in legislation.

At their worst, laws can prohibit the marketing of a product altogether. It is usually illegal to import live animals and fresh fruits unless accompanied by the required certificates.

Furthermore, many products have to be modified to confirm to local laws before these products are allowed across the border.
Legal environment