Some U.S. managers believe that moving business operations abroad will free them from the strictures of a hostile U.S. legal environment. But before you close up that U.S. facility and turn off the lights for the last time you might be interested to know that foreign jurisdictions are getting less friendly. Increased cooperation between countries makes “safe harbors” harder to come by.

     In 2005, for example, growing international recognition of illegal price fixing allowed for increased cooperation between U.S. and foreign governments in prosecuting antitrust offenders. On a related note, a European Commission green paper published by the EU’s top antitrust regulator in December proposes introducing double damages against members of an illegal cartel and supporting private antitrust enforcement against companies, including collective actions by consumers with small claims. That sounds remarkably like class action rights.

     As a result, anyone who adopts a “when in Rome, do as the Romans do” approach to international legal compliance had better know the local rule of law otherwise you might find yourself all buckled up behind the wheel and driving on the wrong side of the road.

This entry was posted on Sunday, January 1st, 2006 at 3:39 pm and is filed under Business Blind Spots, Compliance, Corporate Governance, Costs, Decision Making, International, Leadership, Rule of Law. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.