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 

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