Jurisdiction concept is not strictly bound by territory. Classic example is two parties based in two jurisdiction dealing with each other somehow.

Imagine there is a law in your jurisdiction saying if you hire a person there are rules A, B, C which are a bit inconvenient to you, the employer. What if you incorporate in a different jurisdiction where the salaries are higher but there are no rules B and C, but there are rules B and D. Then this incorporated entity offers to hire people in your jurisdiction, but not offer the higher salaries of the other one.

Which rules should apply? The answer, as usual, is -- "it depends".