The limits of globalization – legal and political issues in e‐commerce

This article analyses some of the most important political and legal challenges faced by internationally operating Internet firms today. In addition to dealing with an important, albeit rarely discussed, issue, the present article attempts to provide a fresh perspective on this topic by utilizing the concept of political risk. Using evidence from exemplary court cases on topics such as consumption tax and intellectual property rights, the discussion demonstrates that Internet firms face serious political and legal uncertainties, which differ considerably between different markets. The article reveals that, in the age of globalization, national boundaries still matter a great deal. In terms of methodology, the article portrays how legal materials can be used to understand the impact of legal and political processes on international firms. Indeed, it suggests that future business research could make greater use of factual evidence from litigation as an alternative methodology in the study of the business environment.