Political, Legal & Regulatory Environments of Global Marketing Chapter 5

The trend toward privatization in many parts of the world is a reflection of changes in which environment. A. social and cultural B. scientific and technological C. economic and political D. social and political E. physical and natural

Political ______________ (_____) It reflects the relative importance of the _______________ and legal system and provides a context within which __________________ and ________________________ understand their relationship to the political system.

________________________: supreme and ___________ political authority. i.e., a French law passed in 1996 requires that at least _______% of the songs played by radio stations must be French.

Political _______________ The potential for a change in a country’s _________________ or _______________________ that could _________________ affect a global company’s operations.

A. Japan B. Latin America C. North America D. Western Europe In which of the following regions of the world is a company likely to encounter the highest potential for political risk. A. Japan B. Latin America C. North America D. Western Europe

The United States imposed trade sanctions on this country following a series of nuclear tests in 1998. A. Japan B. South Korea C. Indonesia D. India E. China

Tariffs & Taxes ___________: a tax imposed by government on goods entering at its boarders. Value added taxes have the effect in China of resulting in cross-border ________________ and ____________________.

Seizure of Assets I. ___________________: refers to governmental action to dispossess a foreign company or investor: _________________ is generally provided, although not often in a prompt, effective, and adequate manner.

II. ____________________: _____________________________ is provided. i.e., In Cuba in 1959, Castro seized control of American property without paying compensation. Coca-Cola, DuPont, Texaco, etc.

i.e., The oil industry in Kuwait III. _______________________: the government takes control of some or all of the enterprises in a particular ________________. i.e., The oil industry in Kuwait In 1970, in an attempt to revive passenger rail service, congress passed the Rail Passenger Service Act. That Act created Amtrak.

________________________________ of Justice (ICJ): International Law ________________________________ of Justice (ICJ): Disputes between _________________ __________________ would be taken before the ICJ

The main role of the ICJ, as the principal judicial organ of the United Nations, is to decide legal disputes ______________________________. Its second task is to give advisory opinions on legal questions referred to it by international organizations and agencies of the _____________ ________________

Common Law vs Civil Code Law I. _____________________ Law: Originated in ______________ and is the system of law found in the U.S., Singapore, Hong Kong, & Great Britain Disputes are decided by reliance on the authority of past judicial decisions (_____________). Cases are not the ____________, systematic statements found in civil-law countries.

II. Civil-Code Law: Origins can be traced back to ___________. The Civil Code was introduced by _________________ at the beginning of the 19th century and changed the political lives of all the states of continental Europe.

II. Civil-Code Law (Cont.): Countries with code law try to ______ ___________ all possible legal rules explicitly. i.e., France ___________ countries have legal systems based on civil-code traditions. __________ European countries are developing “pure” legal systems based on _________________ law.

Islamic Law A comprehensive code based in part on the ______________ (holly book written in Arabic) Based on the teachings of the prophet _____________________. The most difficult part of Islamic Law for most westerners to grasp is that there is _____________________ of church and state.

Islamic Law governs Muslim conduct in all areas of life, ______________________. Islamic Law controls, rules and regulates all ________________________ behavior. It has regulations for personal hygiene, diet, sexual conduct, and elements of child rearing. In particular, Islamic Law spells out the product (i.e., Alcohol) and practices that are haram (_______________________).

Intellectual Property (3 types): Patents, Trademarks, and Copyrights I. ______________: a formal legal document that gives an inventor the exclusive right to make, use, and sell and invention for a _____________________ ______________________________. Changes in U.S. patent law mean that patents are now valid for ________ years from the _______________________.

________ Union (________ Convention): i.e., Engineers in a developing country study an American computer chip design, copy it, produce identical chips, & sell them locally. Intellectual property (_________________) wrongly appropriated ________ Union (________ Convention): the international patent treaty that has _________ signatory countries. It is where a company can obtain foreign patent protection in ________ countries if registered.

II. _____________: a distinctive mark, motto, device, or emblem that a manufacturer affixes to a particular product or package to distinguish it from goods produces by other manufacturers. i.e., _________________ appropriated trademark: countries manufacturing “knock off” clothing by Calvin Klein, Tommy Hilfiger, etc.

“Walkman” is a registered trademark of:

III. _________: It establishes ownership of a written, recorded, performed, or filmed creative work. i.e., wrongly appropriated ________________: Unauthorized videos of Hollywood movies. Manufacturing and selling illegal videocassette copies or CD’s

Which company ranked number one in terms of the number of trademark fillings in the United States? A. Samsung Electronics B. Canon C. Sony D. IBM

Infringements of Intellectual Property 1. ___________________: the unauthorized copying and production of a product. __________

2. ____________ Counterfeit (Imitation): uses a product name that ______________ _____________ from a well-known brand but is close enough that consumers will associate it with the genuine products.

3. _________ (a type of ____________): the unauthorized publication or reproduction of ______________ work.

Legal & Ethical Issues Americans doing business abroad must conform to proper ethical and legal behavior as spelled out by the ____________________________ _____________________ (FCPA). It is a crime for U.S. corporations to ________ an official of a foreign government to obtain or retain business

The __________ _____________ Corruption Perceptions Index (CPI) ranks countries in terms of the degree to which corruption is perceived to exist among public officials and politicians. The “cleanest” score is ______. # Country Score ____ ___________ 2 3 11 New Zealand Denmark United Kingdom _________ 9.6 9.5 8.6 # Country Score ____ ___________ 90 114 133 _____ Russia Honduras Indonesia _____________ 2.8 2.3 2.0