Global marketing is commonly affected by legal conflicts, which can be avoided through understanding the reasons behind it. Some of the legal issues that affect the global commerce include fair commerce practices. Any global marketer should have fair practices in his work to ensure that he does not inflict some economic injuries to other traders and their businesses.
This implies that these global traders should ensure that they apply a fair competition, making use of true advertisements, as well as avoiding usage of copyright. In terms of pricing, equal terms should be applied avoiding discrimination.
In several cases, some marketers have been found introducing their products in other nations without following the right procedures (Cateora & Graham, 2008). Global marketers should consult the relevant business bureau in every nation they wish to introduce their products or services, so as to be fair to the other traders.
Licensing and insurance is another legal factor which has connection with international commerce. This ensures that the global marketers have obtained all the relevant licenses concerned to the business. Licenses should be obtained from the registered board following the right procedure.
Global marketers should as well insure their businesses with a reputable international insurance company, with an attorney going through the documentations to ensure their perfections (Cateora & Graham, 2008).
This ensures that the business is fully protected from all complications regarding the nation’s rules and regulations. Health and safety is another legal aspect to be considered when carrying on a global commerce. Global marketers should put into consideration the health of their employees and the safety of their physical location if they have any.
Political risks which affect global commerce come as a result of changes which occur in a country’s political policies. These policies include, laws governing taxation, assets, and profits. If a certain nation decides to tighten its rules guiding foreign exchange the global marketers operating in it may experience some losses.
Government order to increase credit risk may create some difficulties for global marketers to pay creditors hence quitting from their commerce transactions. Political risks are known to come into two forms that is macro and micro risks (Linden & Fletcher, 2004).
Macro risks are unfavorable actions that mostly affect all forms of foreign marketers. Micro risks are those actions which only affect some sectors in an industry which include some factors like corruption. Global marketers are urged to conduct some research based on how risky a country can be.
Some other sources of political risks are of a financial nature whereby, a nation comes up with some laws which prohibits the movement of capital. Some actions are very harmful leading to a widespread devastation as a result of revolution. However, sources of political risks are both internal and external in relation to three bodies such as society related, governmental based, or economically.
In addition, other sources of political risks are unexpected shifts in government operations, unstable economy, and lack of infrastructure among others (Lascu, 2008). Lack of infrastructure in any given nation may create a political risk to any global marketer.
Through this, global marketers may find it hard to conduct their businesses smoothly hence fearing making losses. Good infrastructure is a major factor to be considered for any business to prosper due to effective movements of raw materials, labor, final products, and other inputs.
Some economic activities of a nation like instability of its currencies may impose a great risk to any global marketer. Marketers may fear to invest in such nations as they may incur some unpredicted losses in their businesses (Cateora & Graham, 2008). In conclusion, a wide research needs to be conducted by global marketers for other nations where they intend to invest.
Reference List
Cateora, P.R. & Graham, J. (2008).International Marketing, (14th ed), ISBN0073380989, 9780073380988.McGraw-Hill Irwin.
Lascu, D.N. (2008).International Marketing, (4th ed) ISBN1426628463, 9781426628467 Cengage Learning.
Linden, B. & Fletcher, R. (2004). International marketing: an SME perspective, (2nd ed) ISBN0273673238, 9780273673231. Financial Times Prentice Hall.