Explain how an international business can be influenced by laws from a foreign land and how it may face liability to its customers for reasons beyond its control?
What will be an ideal response?
A firm may find that it is subject to the stricter laws of a foreign country in which it does
business, and as a result may have to adjust its entire operations according to the most
stringent standard. For example the UK Data Protection Act states that personal data shall not
be transferred to a country or territory outside the European Economic Area unless that
country or territory ensures an adequate level of protection for the rights and freedoms of data
subjects in relation to the processing of personal data. And the EU DPA applies to all non-EU
companies without any establishment in the EU, provided that the processing of data is
directed at EU residents.
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