In a short essay, explain the term extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business
What will be an ideal response?
Extraterritoriality refers to the application of home-country laws to persons or conduct outside national borders. In most cases, the laws are applied in an attempt to prosecute individuals or firms located abroad for some type of wrongdoing.
Examples of extraterritoriality in international business abound. For example, a French court recently ordered Yahoo! to bar access to Nazi-related items in France and to remove related messages, images, and literature from their sites accessible in France, including from Yahoo!'s U.S. website.
Businesses argue that extraterritorial application of national laws represents a substantial burden in international business. It increases compliance and regulatory costs and causes considerable uncertainty.
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