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This structure of URLs is one element of a problem called internationalization. The internet evolved (or was intelligently designed for those not down with the Darwin ;-p) in a way that made TLDs (Top Level Domains like .com, .info, or .org) almost completely useless for determining the intent of a website. (The exception to this is regulated TLDs like .gov, .edu and some country specific TLDs) In theory, a .com is supposed to only be used by companies and .org by nonprofit organizations. Obviously, this does not happen. Combine this with the current trend to misuse country specific TLDs (ccTLDs) for shorter domains names (Hint: Bit.ly has nothing to do with Libya) and you can easily see why the semantic value of TLDs has became a relatively poor metric for categorizing websites.

Most ecommerce merchants want consumers from all over, whether that means all 50 U.S. states, Canada, Mexico, Europe, or the world. But e-retailers need to consider local laws when they ask for business in another state or another country. And it is important to understand which jurisdictions might apply to a given online transaction.