Chapter 2 - INTERNATIONAL BUSINESS MANAGEMENT Dr AMIRUDDIN...

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INTERNATIONAL BUSINESS MANAGEMENT Dr. AMIRUDDIN BIN AHAMAT Legal, Technological, and Political Environments (Forces)
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Agenda of the Lecture 3-2 Describe the major types of legal systems confronting international businesses Explain how domestic laws affect the ability of firms to conduct international business List the ways firms can resolve international business disputes
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Agenda of the Lecture 3-3 Describe the impact of the host country’s technological environment on international business Explain how firms can protect themselves from political risk
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Follow up 3-4 GDP- is a measure of a country’s overall economic output. It is market value of all final goods/services made within the borders of a country in a year. FDI- Investment by country A in country B Federal system of government Central or national government responsible for key issues of the state like defense, foreign policy, treasury etc.
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3-5
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3-6
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The Legal Environment 3-7 While domestic firms must follow laws and customs of the home country, international businesses must obey laws of the home country and all host countries.
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International legal environment Types of legal system Common law Statutory law Code law Religious law Bureaucratic law.
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Common law Legal system in the UK and its former colonies, including the USA, Canada, Australia, India, New Zealand, and much of the Caribbean Essentially unwritten, developed over long periods of time and is founded on the decisions reached by judges over the years on different cases When a judge makes a decision, a legal precedent is then established Such case law has evolved over the centuries, which means that there will obviously be legal variations between countries E.g. manufacturers of defective goods are more liable to litigation in the USA than they are in the UK.
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Statutory law Involves legislation , i.e. the laws passed by government. This can also be a source of legal variation between countries.
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