John Wiley & Sons, Inc c POLITICAL AND LEGAL ENVIRONMENT Chapter Five

John Wiley & Sons, Inc c Political and Legal Environment Chapter Five 1. Political Environment - Individual Govt 2. Political Environment - Social pressures and Political Risk 3. International Agreements 4. International Law and Local Legal Environment 5. Issues Transcending National Boundaries

John Wiley & Sons, Inc c Political Environment - Individual Government Home Country vs Host Country Structure of Government –Ideology –Political Parties Government Policies and Regulations –National Security –Developing New Industries –Protecting Declining Industries

John Wiley & Sons, Inc c Political Environment - Individual Government (cont) Incentives and Government Programs Government Procurement Trade Laws –exhibit 5-1 Tariff and NonTariff Barriers Investment Regulations –Ownership Controls –Financial Controls Macroeconomic Policies

John Wiley & Sons, Inc c Political Environment - Social Pressures and Political Risk Social pressures and Special Interests Managing the Political Environment –exhibit 5-2 Government Policy Areas and Instruments areas - monetary, fiscal, trade, foreign instrument, incomes, sectoral law instruments - legal, administrative, direct market operations

John Wiley & Sons, Inc c Political Environment - Social Pressure and Political Risk (cont) Managing the Political Environment (cont) –exhibit 5-3 Country Risk Assessment Criteria Political and Economic Environment Domestic Economic Conditions External Economic Relations –exhibit 5-4 Examples of Country Risk Ratings

John Wiley & Sons, Inc c International Agreements G-7 (Group of Seven) COCOM - Coordinating Committee for Multilateral Controls

John Wiley & Sons, Inc c International Law and Local Legal Environments International Law Local Legal Systems and Laws –Business Practices and the Legal System exhibit 5-5 Legal Issues Facing the Company –Types of Legal Systems –Examples of Different Laws

John Wiley & Sons, Inc c International Law and Local Legal Environments (cont) Cultural Values and Legal Systems –exhibit 5-6 Number of Lawyers per Residents Jurisdiction –Planning Ahead –Arbitration and Enforcement

John Wiley & Sons, Inc c Issues Transcending National Boundaries ISO 9000 Intellectual Property Protection –Patent –Copyright –Trademark –Trade Secret Paris Convention Berne Convention

John Wiley & Sons, Inc c Issues Transcending National Boundaries (cont) –exhibit 5-7 Ratings for the Level of Intellectual Property Protection in Various Countries Antitrust Laws of The United States US Foreign Corrupt Practices Act of 1977