ABSTRACT
This chapter discusses general elements and ramifications of politics in international business and the management of it. It proves the validity of a saying by a former US Congressional Lumina, the late Tip ONeill, who was the House Majority Leader, that all politics are local. The chapter also explores that domestic politics affects international trade. There are many regulations and laws set up by different countries to help them establish their political initiatives. In the United States, the US Department of Commerce and the Customs Office enforces the majority of regulations concerning trade. There are laws and taxes, which govern both the import and export of goods and even their manufacture and distribution. There are two elements of tax policy literature; one focuses on the impact of changes in taxes on foreign investments and the other concentrates on the relationship between taxation and economic freedom. When conducting international business, the global community uses the law in many different ways.
