Amazon is a global American company that deals in technology. It is considered one of the most influential cultural and economic forces globally, largely because of its huge influence in e-commerce, artificial intelligence, digital streaming, and cloud computing. Being a multinational company, it faces various challenges depending on the government regulations of individual countries. Of greater attention are the legal trade requirements on the sale of products and services to the final consumers. This sharply varies in the United States and the European Union; and they include Environmental, Health, and Safety controls, export controls, product compliance, and Tax and customs.
Amazon’s Domestic Environment in the United States
Amazon greatly benefits from its domestic market in the United States because of the protection of tariffs, quotas, and subsidies, which may include tax cuts (Ferreira, 2016). This basically, gives the company an edge over many foreign companies dealing with the same products. Product compliance especially for foreign companies is a challenge Amazon can get over because it is a domestic company. It does not suffer from product restrictions. The advantage it gets is that it is greatly protected from foreign competitors and it allows Amazon to hire more people locally.
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Amazon’s trade Environment in the European Union
The greatest challenge Amazon faces in the European Union is the considerably huge taxation of their products. This aimed at protecting companies within the European Union while at the same time not locking out foreign companies. Amazon also deals with a variety of products, though sometimes certain products get hit hard by the European Union's regional trade policies; either as a result of the imposition of trade tariffs by the United States on their companies or as a retaliatory approach against the United States export controls which limit what other countries can buy (Becker, 2016). As a strategy to defeat cross-border fees, Amazon has established fulfillment centers across all European markets.
References
Becker, B. K. (2016). Geopolitics of the Amazon. Area Development and Policy , 1 (1), 15-29.
Ferreira, J. (2016). How mismatched tax rules allow multinational enterprises to be one step ahead: in particular, Apple and Amazon. King's Student L. Rev. , 7 , 65.
