Chapter 5 OT
Sovereignty-supreme and independent political authority
Political Risk-possibility of change in a countrys political environment or government policy
that would adversely affect a companys ability to operate effectively
Society Culture and Global Consumer Culture
Culture can be defined as ways of living,
Built up by a group of human beings, that is transmitted from one generation to another.
Culture is the systems of knowledge shared by a relatively large group
Economic Systems- four main types of economic systems; market capitalism, centrally planned
socialism, centrally planned capitalism and market socialism.
Market Capitalism- An economic system in which individuals and firms allocate resources and
Expropriation versus Nationalization refers to the ultimate threat a government can pose
toward a company and or when government takes control of some or all of the enterprises in a
particular country. International law recognizes nationalization as a