Final answer:
The GDPR affects international businesses by requiring strict data protection measures for EU citizens' personal data, which can be more demanding than domestic data privacy laws.
Non-compliance may lead to significant fines, influencing companies to pay close attention to their data handling procedures internationally.
Step-by-step explanation:
One law that impacts international business significantly is the General Data Protection Regulation (GDPR). This European Union (EU) legislation has far-reaching effects for companies with an international presence, such as tech firms that process personal data of EU citizens.
The impact on such a company's international business can be extensive, requiring adjustments to privacy policies, data handling procedures, and customer consent mechanisms.
In contrast, the company’s domestic business may not face these exact regulations but may still be influenced by local data protection laws which may be less stringent than the GDPR.
The GDPR compels companies to ensure data privacy through clear consent from users before collecting personal information, and by granting users the right to access, rectify, and erase their data.
The complexity and expense of compliance with the GDPR often exceed those attached to domestic business operations.
Internationally, failure to comply with the GDPR can result in substantial fines, which can reach up to 4% of global annual revenue.
Companies need to be very cautious in their international operations to ensure full compliance with the GDPR, which may not be the case in their domestic market.