4. The impact of political and social activists, violence and terrorism on international business
5. Assessing and reducing the effect of political vulnerability 6. How and why governments encourage foreign investment
Introduction
The
political environment of countries is a critical concern for the international marketer law recognizes the sovereign right of a nation to allow or deny foreign firms to conduct
• Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members • A sovereign state is independent and free from all external control; enjoys full legal equality with other states; and governs its own territory
International
Introduction
1. No single, uniform international commercial law governing foreign business transactions exists 2. International marketers must comply with the laws of each country within which it operate
Chapter 4
The Politics & Law Environment
Chapter Learning Objectives
1. What does the sovereignty of nations mean and how can it affect the stability of government policies, political parties and nationalism. 2. The political risks of global business and the factors that affect stability 3. The importance of the political system to international marketing and its effect on foreign investments
Chapter Learning Objectives
7. The four heritages of today’s legal systems 8. The important factors in jurisdiction of legal disputes 9. Issues associated with jurisdiction of legal disputes and the various methods of dispute resolution
10. The unique problems of protecting intellectual property rights internationally. Ways to protect against piracy and counterfeiting
11. The legal differences between countries and how the differencmarketing plans 12. The many issues of evolving cyberlaw
3. Weakened economic conditions. 4. Bias against foreign investment or conflicts between governments
Stability of Government Policies
• • The stability or instability of prevailing government policies is a major concern of foreign businesses A change in government, whether by election or coup, does not always mean a change in the level of political risk • Conversely, radical changes in policies toward foreign business can occur in the most stable governments as well
3. The legal systems of different countries are so disparate and complex
4. Best to get expert legal advice when doing business in another country
4.1 Sovereignty
4.2 Stability of Government Policies
Q: Radical shifts in government philosophy can occur when:
1. An opposing political party ascends to power 2. Pressure from nationalist and self-interest groups