Final answer:
It is true that businesses must understand that promotional laws vary by country, as these regulations protect consumers, ensure fair practices, and are critical for a business's international compliance and success.
Step-by-step explanation:
True, a business must understand that the laws governing promotional activities vary by country. These regulations are implemented to maintain competition, protect consumers, and ensure fair marketing practices. An example of this variation can be seen in requirements for disclosing nutritional information on food products, which may differ significantly between nations.
Products like tobacco often have strict labeling rules that can include warning labels. Moreover, the advertising of certain services, such as those by lawyers, is heavily regulated in many jurisdictions. Laws exist to prevent false or misleading statements in commercial transactions; these are considered fraudulent if they deceive consumers. Businesses also follow a code of ethics, which outlines permissible actions to align with societal values and laws. Overall, the diversity in regulations underscores the importance for businesses to adapt their promotional strategies to comply with local laws, which can influence their success in global markets.