GMMCH05.ppt 78KB Jun 05 2011 09:30:25 PM

POLITICAL AND LEGAL
ENVIRONMENT
Chapter Five

John Wiley & Sons, Inc c 1998

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Political and Legal Environment
Chapter Five
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1. Political Environment - Individual
Govt

2. Political Environment - Social
pressures and Political Risk
3. International Agreements
4. International Law and Local Legal
Environment
5. Issues Transcending National
Boundaries
John Wiley & Sons, I

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1. Political Environment Individual Government
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Home Country vs Host Country
Structure of Government
– Ideology
– Political Parties

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Government Policies and Regulations
– National Security
– Developing New Industries
– Protecting Declining Industries
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1. Political Environment Individual Government (cont)
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Incentives and Government Programs
Government Procurement
Trade Laws
– exhibit 5-1 Tariff and NonTariff Barriers

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Investment Regulations
– Ownership Controls
– Financial Controls

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Macroeconomic Policies
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2. Political Environment Social Pressures and Political Risk
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Social pressures and Special Interests
Managing the Political Environment
– exhibit 5-2 Government Policy Areas and

Instruments
• areas - monetary, fiscal, trade, foreign
instrument, incomes, sectoral law
• instruments - legal, administrative, direct
market operations
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2. Political Environment Social Pressure and Political Risk (cont)
•

Managing the Political Environment
(cont)
– exhibit 5-3 Country Risk Assessment Criteria
• Political and Economic Environment
• Domestic Economic Conditions
• External Economic Relations

– exhibit 5-4 Examples of Country Risk

Ratings
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3. International Agreements
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G-7 (Group of Seven)
COCOM - Coordinating Committee for
Multilateral Controls

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4. International Law and Local Legal
Environments
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•

International Law
Local Legal Systems and Laws
– Business Practices and the Legal System
• exhibit 5-5 Legal Issues Facing the Company

– Types of Legal Systems
– Examples of Different Laws

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4. International Law and Local Legal
Environments (cont)
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Cultural Values and Legal Systems
– exhibit 5-6 Number of Lawyers per 10000

Residents

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Jurisdiction
– Planning Ahead
– Arbitration and Enforcement

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5. Issues Transcending National
Boundaries
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ISO 9000
Intellectual Property Protection
– Patent

– Copyright
– Trademark
– Trade Secret
• Paris Convention
• Berne Convention

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5. Issues Transcending National
Boundaries (cont)
– exhibit 5-7 Ratings for the Level of
Intellectual Property Protection in Various
Countries
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Antitrust Laws of The United States
US Foreign Corrupt Practices Act of

1977

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