John Wiley & Sons, Inc c 1998 1
POLITICAL AND LEGAL
ENVIRONMENT
John Wiley & Sons, I nc c 1998
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Political and Legal Environment
Chapter Five
• 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
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1. Political Environment -
Individual Government
• Home Country vs Host Country
• Structure of Government – Ideology
– Political Parties
• Government Policies and Regulations – National Security
– Developing New Industries
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1. Political Environment
-Individual Government (cont)
• Incentives and Government Programs
• Government Procurement
• Trade Laws
– exhibit 5-1 Tariff and NonTariff Barriers
• Investment Regulations
– Ownership Controls – Financial Controls
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2. Political Environment
-Social Pressures and Political Risk
• 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
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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
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3. International Agreements
• G-7 (Group of Seven)
• COCOM - Coordinating Committee for
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4. International Law and Local Legal
Environments
• 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
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4. International Law and Local Legal
Environments (cont)
• Cultural Values and Legal Systems
– exhibit 5-6 Number of Lawyers per 10000 Residents
• Jurisdiction
– Planning Ahead
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5. Issues Transcending National
Boundaries
• ISO 9000
• Intellectual Property Protection
– Patent
– Copyright – Trademark – Trade Secret
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5. Issues Transcending National
Boundaries (cont)
– exhibit 5-7 Ratings for the Level of
Intellectual Property Protection in Various Countries
• Antitrust Laws of The United States
• US Foreign Corrupt Practices Act of
