80 likes | 376 Views
Chapters 6-7 INTERNATIONAL POLITICAL AND LEGAL ENVIROMENT. THE POLITICAL ENVIRONMENT (CH. 6). The Sovereignty of Nations Ultimate power of the state Stability of government policies Forms of Government Political parties Nationalism vs. patriotism Trade disputes, fear, and animosity
E N D
THE POLITICAL ENVIRONMENT (CH. 6) • The Sovereignty of Nations • Ultimate power of the state • Stability of government policies • Forms of Government • Political parties • Nationalism vs. patriotism • Trade disputes, fear, and animosity • Political Risks of Global Business
POLITICAL RISKS AND MODELS • Definition and meaning • Common political risks: Confiscation, Expropriation, and Domestication • Economic Risks: Exchange controls, Local-content laws, Import restrictions, Tax controls, Price controls, Labor problems • Risks from Civil Violence, NGOs, Terrorism, Cyber Crime • Assessing political vulnerability/risk-forecasting risk • Lessening political vulnerability • Models: Freedom House, Fraser Institute, Heritage Foundation, and International Country Risk Guide
LESSENING POLITICAL VULNERABILITY • Good corporate citizenship • Business strategies • Joint venture • Expanding the investment base • Licensing • Planned domestication • Political bargaining • Government attitude and incentives
THE INTERNATIONAL LEGAL ENVIRONMENT (CH. 7) • Bases of Legal Systems • Common Law • Code Law • Theocratic Law (e.g., Islamic law) • Marxist-Socialists Tenets • International Legal Disputes • Jurisdiction • Conciliation (mediation) • Arbitration • Litigation
THE INTERNATIONAL LEGAL ENVIRONMENT (continued) • Intellectual Property Rights • Counterfeiting and piracy • Inadequate protection • International conventions • Business on the Net: Cyberlaw and unresolved issues • Domain names • Collection of sales tax or duties • Contracts, jurisdiction, validity issues
LAWS AFFCTING BUSINESS • Commercial Laws • Company formation • Marketing laws • Antitrust laws • Green marketing issues • Foreign Corrupt Practices Act (FCPA)-extraterritoriality of U.S. laws • Export restrictions • Laws, procedures change, get updated from the Department of Commerce
Discussion Questions • Define and explain political risk. How can we assess and lessen political risk in a country? • Discuss and elaborate various “economic risks” companies face in international business/marketing. • Explain the four types/bases of legal system. How do they affect international business/marketing? • Explain how internet is influencing the commercial, legal and marketing environment.