Law Five: Business - All Regulation is Local

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The Laws of Disruption, written by Larry Downes, a partner with the Bell-Mason Group, is an 12-chapter book published by Basic Books/Perseus Books Group. Composed of four sections, the book explores a simple but unavoidable principle of modern life: though technology changes exponentially, social, economic, and legal systems change incrementally. This disparity in change, Downes argues, will inevitably instigate conflicts between systems rooted in the past and the current and future generations who are dramatically rewriting the rules of both business and social interaction. Downes suggests nine emerging principles that are shaping a new legal code - the laws of disruption - that will close the gap between institutions of the past and those of the future. Chapter 7 introduces the fifth of the nine laws of disruption. Globalization has been turbocharged by the Internet. But merchants and consumers are learning to their peril that the easier it is to interact across borders, the more likely it is that provincial and often pointless local laws will rear up to interfere with trade. Sometimes, conflicting laws and uneven enforcement can come close to forcing a hard stop. The author argues that we need a single uniform law of digital commerce - and further, that the building blocks for writing one are in place.
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