BY AURELIA MITCHELL DURANT Globalization has become a reality for the planet. The very loose and fluid definition of globalization is summed in an often-quoted quote by former Secretary-General of...
Originally posted 2014-08-21 11:00:38.
By Chloe Coska | amdlawgroup.com
When you want to expand your business internationally, what are the consequences? What regulations do companies have to comply with? What are the strategies in order to be a successful international business?
Marketing products and services internationally can cause greater exposure to infringement. However, in this day and age, the Internet makes every business akin to global exposure, meaning more risks.
There are several international regulations that businesses must be aware of in order to do business internationally. For this purpose, most companies have compliance programs that are very broad and can integrate several legal areas.
The most important area of international compliance is corruption depending on the company’s sector. Most companies have to implement policies regarding Corruption if they want to do business internationally. The Foreign Corrupt Practices Act (FCPA) in the United States and the UK Bribery Act are the most important and severe regulations regarding corruption due to their extraterritorial effect over foreign subsidiaries and counterparts. A great example is Siemens in 2008 which was fined $1 billion. Other countries have implemented their own legislation, for example in Japan there is the Unfair Competition Prevention Act (UCPA). In Hong Kong, they have the Prevention of Bribery Ordinance. However, these regulations are not as severe as the former.
Concerning intellectual property, there are still companies which lose millions of dollars because of counterfeits from other countries. It is important for companies to understand other countries’ regulations regarding intellectual property. For example, in a previous article we explain how important it is to register your mark in China. There are great tools for small business which want to expand internationally. The International Chamber of Commerce provides a guide for helping business use intellectual property.
Data protection is another area which is important in this day and age. In Europe, Data Protection and Privacy is really important. The European Union adopted in 1995 data protection rules to strengthen online privacy rights and boost Europe’s digital economy.
For example, in France there is the Commission Nationale Informatique et Liberté (CNIL), a French data protection authority, which protects how personal information is processed.