I don't think the theory is really so complicated. If you want to provide products or services within a country then you need to abide by the laws of that count

I don't think the theory is really so complicated. If you want to provide products or services within a country then you need to abide by the laws of that country, if you don't then the legal system of that country has various measures to make doing business in that country prohibitive. At a basic level you could imagine court ordered DNS blocking by ISPs (as is done for the pirate bay in many places), or if you were really naughty then extradition, arrests of key individuals in your org if they try and travel etc.