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

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

3. 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”

4. 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

5. 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

6. 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

7. 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

8. Chapter 2 Basic Principles of International Law
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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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 ? How about for the future?