GULATION OF INTERNATIONAL BUSINESS1. Introduction: An international entrepreneur is affected by laws and regulations from many sources, not just the laws of his or her home country or state. Of course, an international entrepreneur must obey the laws of the city, county, state and nation that is considered his or her domicile or principal place of business. An international entrepreneur must also comply with the laws and regulations of the host country or jurisdiction. If the host country is a member of a regional organizational structure, such as the European Community, these laws must also be respected. Ultimately, international regulations such as treaties or conventions can impact the international entrepreneur and his business. The remainder of this chapter examines these different sources or levels of regulation.2. International controls: International agreements, treaties and conventions are becoming increasingly important for international business enterprises. The scope of international conventions is no longer limited to relations between governments. Of particular interest to international business enterprises is the Convention on the International Sale of Goods, to which the United States Senate gave its advice and approval in 1987. The Convention on the International Sale of Goods is a kind of uniform international commercial code. In fact, the Uniform Commercial Code served as a model for the Convention. The Convention applies to sales transactions between two parties in different countries if each country has ratified the transaction. The Convention does not concern the sale of goods to consumers. Both parties to the transaction can agree that the Agree...... middle of paper ......ct? Should the capital come from a national bank or a specific government or state-owned bank? Can International Business Enterprise move certain currencies out of the country? Is there a repatriation of profits? Can International Business Enterprise convert currency to host country dollars? Controlling capital movements can have a significant impact on the profitability of the company. A closely related type of regulation is tax legislation. Tax legislation can be very favorable, for example tax exemptions, tax credits and favorable tax rates. Tax laws can be positive at first and then have a negative impact on the business. For example, in Lebanon, if you receive tax credits for five years, then you must continue to do business there for another five years. Regulation can be positive tax conditions as well as negative tax conditions..