Classify Legal Systems and Explain How Legal Differences Between Countries Can Affect International Marketing Plans?

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Classify legal systems and explain how legal differences between countries can affect international marketing plans?

What is law?

A definition: law is the system of control (i.e. a set of rules) through which society operates (i.e. citizens must obey or suffer a penalty)

What is a legal system?

The totality of laws that regulate a state (i.e. a legally organised community)

Types of legal systems:

* Common law legal systems

* Civil or code law legal systems

* Other legal systems – such as Islamic legal system and Marxist–Sozialist Telnets

Common and Code Law

Common law

* Common law is based on tradition, past practices.

* Common law seeks “interpretation through the past decisions of higher courts which interpret the same statutes or apply established and customary principles of law to a similar set of facts”

Code law

* Code law is based on an all-inclusive system of written rules (codes) of law

* Legal system is generally divided into three separate codes

* Commercial

* Civil

* Criminal

Islamic Law

* Islamic law is based on interpretation of the Koran

* Among the unique aspects of Islamic law is the prohibition against the payment of interest

* The Islamic system emphasis on the ethical, moral, social, and religious dimensions to enhance equality and fairness for the good of society

Marketing Laws

All countries have laws regulating marketing activities

* Promotion

* Product development

* Labeling

* Pricing

* Channels of distribution

Examples to International marketing disputes

1. Wal-Mart was selling Cuban-made pajamas in Canada.

* U.S. law forbids U.S. companies to trade with Cuba.

* Canada government claimed this U.S. law infringes Canadian citizens’ right.

2. Laws governing sales promotions in the European community

* In Austria, premium offers, free gifts, or coupons are considered as...