S businesses government insurance coverage for the

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certain deductible provides U.S. businesses government insurance coverage for the risk of terrorismb. Overseas Private Investment Corporation (OPIC) – A U.S. government agency that sells political risk insurance to U.S. businesses operating in countries with which the United States has a bilateral investment treatyC. Corruption – A situation where businesses are able to illegally alter relevant private and/or public decision making by way of bribes, kickbacks, blackmail, extortion, and related activities1. Private Corruption – Business corruption involving other private businesses, individuals, or groups2. Public Corruption – The practice of making illegal payments to government officials or engaging in blackmail, extortion or other related activities to obtain government contracts or governmental approval for business activitiesa. Foreign Corrupt Practices Act of 1977 (FCPA) – A United States law that prohibits U.S. companies from bribing or otherwise corrupting foreign government officials to win foreign government contracts or obtain other foreign government assistance for their businessesD. The Legal Environment1. Civil Law Legal System – A legal system based on a comprehensive listing of legal rules in sets of written codes of lawa. Power lies with the legislative branch of government, which enacts specific laws or rules, which are, in turn, set forth in written legal codesb. Over 80 countries in the world are currently civil law legal system countries.2. Common Law Legal System – A legal system where legislative bodies generally enact less specific legal rules giving judges or courts considerable authority in interpreting these rules based on precedent and other factors 3. Theocratic Law Legal System – A legal system based on a religious document and religious teachings4. Criminal Law – Law that establishes which violations of a nation’s laws are crimes punishable by possible incarceration5. Contract Law – The body of law governing legally enforceable agreements between parties to engage in economic exchange6. Tax Law – The body of law dealing with governmental levying of taxes on individuals and corporationsa. Tax Havens – Countries with little or no tax transparency7. Antitrust Law – Laws to promote “fair competition” among businesses

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