In 2019, the United States imported and exported $5.6 trillion in goods and services across the globe. Much of this commerce came from medium and small-sized businesses. More than 200 countries, territories, and regional associations have business agreements with the US to participate in these imports and exports.
If you’re a business working in international trade, you must understand international business law or have an international lawyer guiding your business.
Whether you’re a new business hoping to get into the trade game or are already involved in international trade, you need the guidance of an experienced business lawyer.
Read on to learn more about international business law and why it’s important for your business.
Understanding International Business
International business can occur through a variety of avenues. Businesses can participate in the importing and exporting of goods or services.
These commercial transactions can include:
- Imports and exports
- International trade
- Distribution licensing
- International commercial disputes
- Private and governmental transactions
Any combination of these can take place between two or more businesses or two or more countries.
Since transactions between countries were mentioned, it’s important to note that often international business between countries is fueled by politics, whereas a business will be involved for the profit.
A business must abide by the laws and regulations put in place by their home country and the countries with which they do business. This is often why it’s necessary to have a business attorney to guide your business.
Keeping track of the many laws, restrictions, and transactions through multiple countries can get complex quickly.
International business law is then rooted in the laws and trade agreements of the involved countries.
International Business Licenses
Another important part of understanding business law is understanding the need for business licenses.
International business may need a special license for a variety of reasons, including:
- Conducting business in a foreign nation
- Partaking in a transaction for services or goods
Licensing requirements will also include both tangible property and intellectual property being exchanged between two parties.
Let’s consider an example: A business that operates in a country might develop a form of intellectual property. The company might then go to another country where it asks another company to produce the product and therefore get licensed to do this.
A key part of international law is these licensing rights. Negotiating the transactions and agreements is important for the success of the business in the international arena.
What Is International Business Law?
When there is a business in the global community, international business law dictates how the business proceeds. It establishes the rules, laws, and regulations that guide international business transactions.
International business law covers a sweeping range of topics under the umbrella of this type of law. It includes the following:
- Economics and the law
- International commercial transactions
What makes international business law unique is that the laws will be governed by the jurisdiction in play with the business transaction.
A US international business lawyer must know the fundamentals of business law, then know how to expand those concepts into the international arena.
Being a Part of a Global Community and Economy
In today’s world, so many of the products that are a part of daily life come to us through international business. It’s possible, in fact, to have a product manufactured in one country, packaged in another, and then distributed and sold in a third country.
Whatever the motivation to expand and manufacture internationally, whether it’s for the workforce or the cost to make the product, doing this means there are many laws to follow and important business transactions to be negotiated.
One important thing to understand about international business is that not only does every country have its own complex laws to follow, but the socioeconomic status of the country can impact your own business back home. This makes understanding their business all the more important.
For example, you might hope to manufacture in a country because the labor costs are lower. This could sound lucrative for you and maybe even hard to resist.
Yet, it would be imperative you understand the labor laws of the other country and that you’re abiding by them, and understand the economic implications of hiring an international workforce.
You Know Your Business, So Why Do You Need an International Business Lawyer?
While doing business internationally could be lucrative, there’s more involved than staying inside US borders and doing business.
Doing business outside the US and mistakenly not following either US law or the laws of the other country could land you in some trouble. So, instead of making money, you’ll be answering some tough legal questions.
Business law is so important, especially at the international level, for many reasons. A business lawyer helps with the following:
- Compensation issues in both countries, paying close attention to labor laws
- Protecting the rights of the company shareholders
- Licenses, permits, and contracts
- Immigration needs for employees
- Immigration needs to open a US subsidiary
- International commercial disputes
It may be necessary for the business lawyer to work with one or both of the governments involved as the business transactions are negotiated.
International Business Law: Get the Help Your Business Needs
With so many small and medium-sized businesses partaking or hoping to partake in some form of international business, it’s imperative they understand what this includes.
A business will need a keen understanding of international business law for its business venture to be successful and lucrative.
With so many different factors to consider when participating in international business law, you want to have smart legal guidance to avoid costly errors.
You want to work with experienced international lawyers to guide your business decisions and negotiate important deals on your behalf. Contact us today to get an experienced international legal team working on your behalf.