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The Legal Environment of International Trade
Business organizations are operating internationally experiences challenges in trying to comprehend and confront different foreign laws governing the operation of the business. The legal issues of one country might be different with the laws of another country. The legal frameworks which seek to protect Small and Medium Enterprises have been established by various countries. The main objectives of the laws is to influence the expansions of businesses through manufacturing and achieving the scale in various countries across the world. To reduce the level of risks of international investors, judicial independence and efficiency play a major role. The free and independent judiciary from the social environment, citizens, government or political influences ensures that international investors receive fair treatment and achieve the good environment of operating business. Therefore, the international managers have a bigger responsibility of comprehending and understanding the laws of the country which, they need to invest in before entering into legal contracts. According to studies, Germany leads the world, with the highest level of judicial independence followed closely by Netherlands and Australia. There are a large number of international investors in the above-mentioned countries because the investors believe that their …
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