Global Commerce and Legal Issues, Essay Example

The advent of the Internet and other forms of digital communication has led to an era of globalization in commerce. While international trade has existed for centuries, the instant communication made possible by the Internet has allowed international and transnational business to flourish as never before. At the same time, however, conducting commerce on a global scale comes with a variety of risks, such as potential legal issues that companies may face when doing business with and in other countries.

When legal issues arise in global commerce, the matter of which country has legal jurisdiction must be considered. Different countries have different legal systems, typically based on common law (which looks to legal precedents to resolve issues) or civil law, which adheres to legal codes as sources of authority.  The issue of intellectual property protection is significant in global commerce, as different countries have different laws and rules about patents and trademark protection.  Different countries also have different anti-trust laws, so companies doing business on a global scale may be subject to different regulatory authorities in different countries.  Licensing and trade agreements also affect global commerce, and can provide challenges for companies doing business across international borders. There are political issues to consider as well; for example, a change in a country’s political environment may have a negative effect on international companies doing business there. This can lead to the risk that companies will be nationalized, expropriated, or confiscated.  Some countries have higher levels of bribery and political corruption than others, and companies doing business on a global scale must be prepared to face the legal and political challenges that arise in different countries.