Political and Legal Differences
Political Climate Stability is a key consideration.
Legal Environment Three dimensions: U.S. law, international regulations, laws of the countries where they plan to trade. Corruption can be an important issue.
• Foreign Corrupt Practices Act Forbids U.S. companies from bribing foreign officials, candidates, or government representatives.
International Regulations Friendship, commerce, and navigation treaties between U.S. and other nations.
• Tariffs Taxes charged on imported goods.
• Enforcement problems, as with piracy.