[Silhouette]

Then no country should have legal authority over companies operating in the country but based internationally.

But this is the real issue. To what extent is a company "operating in" a country where it has no staff and no physical presence?

The principle that someone should become subject to the laws of a country they've never visited and where they have no assets just because they communicated with someone else who does live in that country seems questionable. Even if money is sent by the person living in that country to someone based elsewhere it still seems questionable.

Taken to their logical conclusion these kinds of arguments would kill off a lot of the value of the modern Internet (assuming they could be practically enforced). Can you even write a blog post any more if it might be controversial in any country in the world? Do you have to pay if you show ads next to that blog post and someone from the Sovereign Republic Of East Nowhere visits - but the Sovereign Republic Of East Nowhere has a law prohibiting online advertising as a social harm and imposing a fine of 1000% of global revenues generated through ads? What happens when the laws of two different countries are in direct conflict and one requires you to include an official warning of some kind alongside certain information on your blog but the other one prohibits such statements unless you're formally qualified to give advice in the field?

If you want to interfere with international trade or international communications at all then it makes far more sense practically - and arguably both morally and legally as well - to legislate so that your own people in your own country who are subject to your own laws are the ones who must or must not act in a certain way. If there's some kind of regulation on physical goods then make the person importing those goods responsible for compliance. If you want to tax international transactions then make the person in your country who is participating in those transactions responsible for declaring and paying the tax. But realistically this leads to a lot of non-compliance because your citizens don't have to be experts in international tax law so you can collect your $1.53 when they bought a new T-shirt from some online store based in another country and had it shipped.