Actually... If you are in one country, and are clearly and unambiguously doing business with someone in another country -- with written agreements, money/goods

Actually... If you are in one country, and are clearly and unambiguously doing business with someone in another country -- with written agreements, money/goods/etc. transferring -- then it's simply not a new idea that you may end up subject in some way to the laws of that other country. It also isn't a particularly scary idea. The idea that "on the internet" is some sort of magical extra-jurisdictional space is the new and scary idea.