BUSI 617 Ch 5

BUSI 617 Ch 5 - Chapter 5 The political environment of...

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Chapter 5 The political environment of global marketing is the set of governmental institutions, political parties, and organizations that are the expression of the people in the nations of the world In particular, anyone engaged in global marketing should have an overall understanding of the importance of sovereignty to national governments The political environment varies from country to country, and political risk assessment is crucial It is also important to understand a particular government’s actions with respect to taxes and seizure of assets Historically, the latter have taken the form of expropriation, confiscation, and nationalization The legal environment consists of laws, courts, attorneys, legal customs, and practices International law is comprised of the rules and principles that nation-states consider binding upon themselves The countries of the world can be broadly categorized as having either common law legal systems or civil law legal systems The US and Canada and many former British colonies are common law countries – most other countries are civil law countries A 3 rd system, Islamic law , predominates in the Middle East Some of the most important legal issues pertain to jurisdiction , antitrust, and licensing In addition, bribery is pervasive in many parts of the world – the Foreign Corrupt Practices Act (FCPA) applies to American companies operating abroad Intellectual property protection is another critical issue Counterfeiting is a major problem in global marketing – it often involves infringement of a company’s copyright , patent , or trademark ownership When legal conflicts arise, companies can pursue the matter in court or use arbitration The regulatory environment consists of agencies, both governmental and nongovernmental, that enforce laws or set guidelines for conducting business Global marketing activities can be affected by a number of international or regional economic organizations – in Europe, for example, the EU makes laws governing member states The WTO will have a broad impact on global marketing activities in the years to come Although all 3 environments are complex, astute marketers plan ahead to avoid situations that might result in conflict, misunderstanding, or outright violation of national laws Case 5-1: America’s Cuban Conundrum: The Assignment o In 1996, President Bill Clinton signed the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act
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This note was uploaded on 02/22/2012 for the course BUSI 617 taught by Professor Staff during the Fall '11 term at UNC.

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BUSI 617 Ch 5 - Chapter 5 The political environment of...

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