1. International Business, 8th Edition
Griffin & Pustay
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2. Copyright © 2015 Pearson Education, Inc.
Learning Objectives
Describe the major types of legal systems confronting international businesses
Explain how domestic laws affect the ability of firms to conduct international business
List the ways firms can resolve international business disputes
Describe the impact of the host country’s technological environment on international business
Identify the factors that influence national accounting systems
Explain how firms can protect themselves from political risk
The goal of this and the next chapter is to understand the impact of the various dimensions of a country’s environment on the management of a firm’s international business. This chapter discusses the legal, technological, accounting, and political dimensions.
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3. The Legal Environment: Differences in Legal Systems
Common Law
Civil Law
Religious Law
Bureaucratic Law
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4. The Legal Environment: Domestically Oriented Laws
Impact
Firm’s domestic operations
International competitiveness of domestic firms
Business practices of foreign firms operating outside the country’s borders
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The Legal Environment: Laws Directly Affecting International Business Transactions
Sanctions
Embargos
Export control of dual-use products
Extraterritoriality
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6. The Legal Environment: Laws Directed against Foreign Firms
Nationalization
Expropriation
Confiscation
Privatization
Repatriation
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7. The Legal Environment: Impacts of MNCs on Host Countries
-Economic -Political -Cultural
Positive Effects
Negative Effects
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8. The Technological Environment
Foundation & Determinants
Resource base
Investments in infrastructure and human capital
Technology transfer
Protection of intellectual property rights
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9. The Accounting Environment: The Roots of National Differences
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10. The Accounting Environment: Differences in Accounting Practices
Valuation and Revaluation of Assets
Valuation of Inventories
Dealing with the Tax Authorities
Use of Accounting Reserves
Other Differences
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11. The Accounting Environment: Impact on Capital Markets
Evaluating the performance of firms incorporated in different countries
Assessing the riskiness of potential loans
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12. The Political Environment: Political Risk
Political Risks
Ownership Risk
Operating Risk
Transfer Risk
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13. The Political Environment: Political Risk
Political risks
Macropolitical
Micropolitical
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14. The Political Environment: Political Risk
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15. The Political Environment: Political Risk Assessment
Democracy or dictatorship?
Free market or government control?
Public or private sector customers?
Arbitrary change to policies or rule of law?
Stability of the existing government?
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