International Management The Political, Legal, & Technological Environment Chapter 2

Chapter 2 Ideologies and the “isms” Individualism- One should be free to pursue economic & political endeavors w/out constraint Give examples of countries Eastern Europe, the former Soviet Union, areas of Latin America, Great Britain, Sweden Europe created the EU, has multiple regions

Chapter 2 Collectivism- Views the needs or goals of the society as a whole vs. the individual desires Fascism- aka “national socialism” Give examples of countries Plato- individual rights should be sacrificed & property should be commonly owned Merged in Germany and Italy as national socialism or “fascism”

Chapter 2 Socialism- Government ownership of institutions but profit is not the ultimate goal Give examples Which countries are practicing democratic socialism? China, North Korea, Cuba Democratic socialism- Great Britain Labor Party, Germany’s Social Democrats, France, Greece, and Spain

Chapter 2 Political Systems Democracy- Govt. is controlled by the citizens either directly or through elections Totalitarianism- Only one representative party which exhibits control over every facet of political & human life Modern European states and some Latin America China, North Korea, Laos, Vietnam Cuba

Chapter 2 Foundations of Law 1) Islamic Law- Derived from the Qur’an, teachings of Prophet Muhammad: Middle East & Central Asia 2) Socialist Law- Rooted from Marxist socialist system, property owned by the state or state-owned properties: China, Vietnam, North Korea, Cuba

Chapter 2 3) Common Law- Derived from English law, foundation of legislation: US, Canada, England, Australia, New Zealand 4) Civil or Code Law- derived from Roman law, founded in non-Islamic & nonsocialist countries: France, some countries in Latin America & Lousianna

Chapter 2 Basic Principles of International Law http://www.youtube.com/watch?v=yBuZgG6mMoI Sovereignty & Sovereign Immunity International Jurisdiction- 3 principles Doctrine of Comity Sov- govts have the right to rule themselves as they seem fit. 1 countries court system can't be used to rectify injustices or impose penalties in another country unless that county agrees. Nationality principle- every country has jurisdiction over its citizens no matter where they are located. Territoriality- every nation has the right of jurisdiction within its legal territory Protective- every country has jurisdiction over behavior that adversely affects its national security Doctrine of Comity- Mutual respect for the laws, institutions, & govts of other countries in the matter of jurisdiction over their own citizens

Chapter 2 Basic Principles of International Law Act of State Doctrine Treatment & Rights of Aliens Forum for Hearing & Settling Disputes Act of- all acts of other govts are considered to be valid by US courts, even if such acts are inappropriate in the US. Treatment- Countries have the right to limit, refuse admission of people into their country Forum- US courts can dismiss cases brought before them by foreigners

Chapter 2 Legal and Regulatory Issues Financial Services Regulations- Engaged to tighten aspects of services Foreign Corrupt Practices Act (FCPA)- Illegal to influence foreign officials with personal payment or political contributions aka bribes

Chapter 2 Legal and Regulatory Issues Bureaucratization- Govt controls, red tape, ease of doing business in a country Exhibit 2-1 p. 47 Privatization- Enabling private companies to enter the markets

Chapter 2 Trends in Technology, Communication, & Innovation Ways this will affect international management in the next 10 years: p. 50 Biotechnology, E-Business, and Telecommunications- Give examples of each Biotechnology= Integration of science and technology to create agricultural or medical products through indusruial use and manipulation of living organisms. E-Business- Internet, Amazon, school, banking Telecommunications= video conferencing, skype, Apps

Chapter 2 Technological Advancements- Assist in communicating, delivering products, production Outsourcing- Bring in people for short periods of time with specified SKA’s Offshoring- Have people in other countries doing the work: India/China

Chapter 2 Hitachi Goes Worldwide- Team Case Study What kinds of products does the firm offer? On what types of environments does it operate? Based on what is has been doing over the last 2 or 3 years, what has the strategy in competing in the environment of IB from 2000-2010? How about for the future?