A U.S. company conducting business abroad must adhere to what requirement?

When a U.S. company operates in a foreign country, it is necessary to adhere to both the laws of the United States and the laws of the country in which it is conducting business. This dual compliance is crucial because it ensures that the company operates legally within the local jurisdiction while also adhering to U.S. regulations that may apply, such as those concerning anti-corruption, trade practices, and employment laws.

For example, U.S. businesses are subject to laws like the Foreign Corrupt Practices Act, which prohibits bribery of foreign officials, regardless of local customs or practices. Additionally, there may be specific local laws concerning labor, environmental practices, and consumer protection that need to be followed.

By understanding this requirement, companies can mitigate legal risks, avoid penalties, and maintain a positive reputation both locally and globally. Such compliance not only protects the organization from potential legal issues but also ensures ethical business practices are maintained, which can be integral to a company's success in a foreign market.