The Internet - Book Report/Review Example

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Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational…
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The Internet al Affiliation The Internet A multinational corporation is defined as “an enterprise operating in several countries but managed from one (home) country. Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered a multinational corporation” (Web Finance, Inc., 2014, p. 1). From the definition, it could be deduced that the fact that an organization operates internationally means that it is subject to the laws and jurisdictions of the country which it operates in. Likewise, if and when the organization uses the electronic medium to promote, advertise, and market its product or services to diverse clientele, spanning different geographic locations, also means that it is subject to the internet laws and worldwide internet policies. The implications of these are as follows: (1) multinational corporations (MNCs) should be vigilant in discerning with laws, regulations, and legislations they must adhere and abide with in its operations with various countries to avoid sanctions and penalties for negligence and for violation of the defined laws; (2) these corporations must be adept at cultural norms, practices and traditions which should also be observed while operating in foreign soil; and (3) these MNCs should apprise themselves on access of foreign corporations or customers through the internet due to disparities in speed, language, and restriction in information gateway (Determann, 2009). The experiences of U.S. MNCs when establishing ventures in China, for instance, were faced with challenges. As noted, “a significant issue is the rapidly evolving nature of Internet services and the difficulty of fitting them within the Chinese telecom regulatory regime” (Determann, 2009, p. 1). The challenges noted in terms of laws affecting the use of the internet include use of the foreign currency in online transactions as well as speed delays when accessing onsite servers because “all foreign Internet traffic is routed through government-controlled gateways” (Determann, 2009, p. 1). Knowledge of these information are crucial for MNCs doing business in foreign soil.
Determann, L. (2009). Internet Business Law in China for US Companies. Retrieved from Baker & McKenzie:
Web Finance, Inc. (2014). Multinational Corporation. Retrieved from Business Dictionary: Read More
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