5 The Political and Legal Environment Introduction While deciding upon a firms international marketing activities the manager needs to concentrate on three areas HomeCountry Political and Legal Environment ID: 313737
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Slide1
Chapter
5
The Political and Legal EnvironmentSlide2
Introduction
While deciding upon a firm’s international marketing activities the manager needs to concentrate on three areas:
Slide3
Home-Country Political and Legal Environment
Firms are affected by government policies and the legal system, and this has a major impact on a firm’s opportunities abroad
Slide4
Home-Country Political and Legal Environment
Governments
may attempt to aid and protect the international marketing efforts of companies through ____________activitiesSlide5
Home-Country Political and Legal Environment
Gray market goods are
Areas of governmental activities which are of major concern to the international marketer are:
Slide6
Home-Country Political and Legal Environment
Embargoes
and sanctions: Reasons for the impositions are varied, ranging from human rights to nuclear nonproliferation to terrorismSlide7
Home-Country Political and Legal Environment
Unilateral impositions result in shift in trade, and do not produce the desired result
Governments often consider sanctions as being free of costSlide8
Home-Country Political and Legal Environment
Export control
Slide9
Home-Country Political and Legal Environment
The U.S. export control system is based on the:
The exporter must obtain an __________, which consists of written authorization to send a product abroadSlide10
Home-Country Political and Legal Environment
Restricts the flow of materials and helps avoid the proliferation of weapons of mass destruction
Imposes financial controls which inhibit funding for terrorist training Slide11
Home-Country Political and Legal Environment
Availability
of high-technology products Import controls Slide12
Home-Country Political and Legal Environment
Tariffs
: Voluntary restraint agreements:
Quota systems
: Slide13
Home-Country
Political and Legal Environment
Problems faced while administering import controls: Slide14
Home-Country
Political and Legal Environment
They do not to work as intended Regulation of international business behaviorBoycotts:
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Home-Country
Political and Legal Environment
Antitrust measures – Bribery and corruption – Slide16
Host-Country Political and Legal Environment
Political risk
: Major types of political risk Slide17
Host-Country Political and Legal Environment
Government
policies to combat political risks include:Expropriation: Confiscation: Slide18
Host-Country Political and Legal Environment
Domestication
: Whereby the government: Effects of domestication include:
Slide19
Host-Country Political and Legal Environment
Common
risks faced by most businesses operating abroad: Slide20
Host-Country Political and Legal Environment
Legal
differences and restraints Two major legal systems popular worldwide are: Slide21
Host-Country Political and Legal Environment
Antidumping
laws – Require export and import licensingLaws may be designed to protect domestic industries and reduce imports
Slide22
Host-Country Political and Legal Environment
Dealing with the intricacies of national politics:
Slide23
Host-Country Political and Legal Environment
Develop coalitions or constituencies to motivate legislators and politicians to consider and implement change through
: Slide24
International Relationships
International politics
If bilateral political relations between countries improve, business can benefit Slide25
International Relationships
International law
No enforceable body of international law exists Firms are restricted by both home- and host-country lawsSlide26
The International
Relationships
In case of a conflict in deciding which country’s law to follow, firms can choose either arbitration or litigation International terrorism and marketing
Slide27
International Relationships
Terrorists direct their strikes at business more than any other target
Direct effect of terrorism on business activities are the immediate cost levied on individual firmsIndirect effect of terrorism on business activities – Slide28
International Relationships
Chill
effect: Physical damage inflicted by terrorism disrupts power supply, communication, transport and other forms of infrastructure
Slide29
International Relationships
Key side effect of terrorism
Slide30
Ethical Issues
The ethical obligations faced by multinational enterprises include:
Corporate governance and responsibilityCorporate governance: Slide31
Ethical Issues
Its key elements include:
Intellectual property: Slide32
Ethical Issues
Bribery and corruption
The _________________________ was passed in 1977 to disallow U.S. firms to bribe foreign officials for business purposesFunctional lubrication - The “express fee” charged in many countries, which has several characteristics:
Slide33
Ethical Issues
In
the process driven by “individual greed,” the amount depends on the individual official and is for the official’s own personal useIn 1995, the __________________________ officially condemned briberySlide34
Ethical Issues
The
________________________________ in 2009 released a Recommendation for Further Combating Bribery of Foreign Public OfficialsThe _______________________ was intended to protect investors by improving the accuracy and reliability of corporate