Homework answers / question archive / OWN WORDS Give your insights about this  legal issues in international business Marketing and advertising limitations    To succeed in any new environment, it needs to thoroughly market its business and allow its audience to know its brand

OWN WORDS Give your insights about this  legal issues in international business Marketing and advertising limitations    To succeed in any new environment, it needs to thoroughly market its business and allow its audience to know its brand

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Give your insights about this  legal issues in international business

Marketing and advertising limitations 

  To succeed in any new environment, it needs to thoroughly market its business and allow its audience to know its brand. To understand the company's marketing and advertising rights and regulations, the company needs to learn what each country allows foreign business entities to do. For example, China's latest advertising regulations clarify the boundaries for what constitutes online advertising or not, which can make a difference between dealing with a fine or attracting your clientele. Since each region has its marketing boundaries that you need to follow, a company must ensure their brand's reputation is protected to avoid unnecessary fines.

 

Governing Laws 

  When a company is operating internationally and opts to hire foreign staff, it must ensure that employee payroll and filing obligations are governed and protected by the law of their residential country. This helps to safeguard the employees and provide more clarification of the terms and conditions of the employment. Hiring the local workforce means that you'll need to learn about employee regulations, their rights, as well as certain cultural norms such as holidays and other important issues that will affect their relationship with your business. In addition, any company that ventures in international business have to focus on applicable consumer laws, data protection rules, and regulations.

Tax

  Tax varies from one country to another, and opting for advice for tax structuring will help in minimizing tax obligations. That way, you can make sure that you are in line with the law and make use of any rights you have. Every tax authority wants its local businesses to pay a maximum contribution, and for such purposes, local payroll taxes and social security payments can be deducted at the source.

 

Foreign currency exchange and inflation

  The value of a foreign currency differs from one country to the other, and usually, it won't be the same as your home currency. Therefore, it is important to be familiar with the exchange rates between home and foreign currency where you wish to operate the business. Also, one has to keep a note of inflation rates as well. These are different in each country and can influence the local material cost, labor expenses, and other pricing related to products and services. Having information on both currency exchange and inflation rates helps estimate the value of products across different jurisdictions.