Today, few businesses are strictly local. Even enterprise customers with purely local markets can have international service needs.
Purely domestic transactions may arise from customer preference, legal mandate or perceived advantages to protect special relationships such as customer personal data.
If nothing else is sacred, employee protection is a primordial public policy. The degree of protection may vary. The protections might be in the form of civil rights (under a non-discrimination policy) or in the form of procedures (such as works councils, worker representatives) or statutory roles for workers in corporate governance (as in “co-determination” under German corporate law).
Disparities in employee protections may facilitate foreign outsourcing and /or foreign captive shared services organizations. Some believe that employee protection may damage the international competitiveness of national economies where, due to a rule on protection of employees from losing existing work conditions and emoluments, old processes are not reformed locally and new processes are outsourced.