1. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business chapter 3 Legal, technological, and political forces

2. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Happy Environment Day

3. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Adapt or die 17 Million user in mid 2000, increased 4 times in less than 2 yrs

4. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Decision Facing International Managers äWho to hire äHow to market company’s goods in the host market äWhich technologies to adapt äAnd such....................

5. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Legal, technological, and political forces

6. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Need to View the Globe

7. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business History of Law äLegal history is closely connected to the development of civilizations äAncient Egyptian law, dating as far back as 3000 BC äBy the 22nd century BC, Ur-Nammu, an ancient Sumerian ruler, formulated the first law code äThe Torah from the Old Testament is probably the oldest body of law still relevant for modern legal systems, dating back to 1280 BC

8. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business The Legal Environment While domestic firms must follow laws and customs of home country, international businesses must obey laws of home country and all host countries.

9. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Legal Systems Common LawCivil Law Religious LawBureaucratic Law

10. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Common Law äBased on wisdom of judges’ decisions on individual cases through history äCases create legal precedents

11. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Civil Law äBased on codification of what is and is not permissible äOriginated in biblical times with the Romans äReinforced by French Napoleonic code äJudge determines scope of evidence collected and presented

12. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Religious Law äBased on the officially established rules governing faith and practice of a particular religion äA country that applies religious law to civil and criminal conduct is called a theocracy

13. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Bureaucratic Law Bureaucratic law is the legal system in communist countries and in dictatorships.

14. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Laws Affecting International Business Transactions Sanction Embargo Extraterritoriality

15. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Laws Directed Against Foreign Firms Nationalization Expropriation Confiscation Privatization

16. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Economic and Political Impacts of MNCs on Host Countries äAdvantages äHigher standards äJob creation äTax benefits äTechnology transfers äDisadvantages äCompetition äJob loss äDependency on economic health of MNC äPolitical power

17. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Cultural Impacts of MNCs on Host Countries äAdvantages äImproved standard of living äIntroduction of new products äBetter health care äMore sanitary food products äDisadvantages äAbuse of less developed policies in the areas of safety and environmental concerns äNegligent product offerings

18. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Dispute Resolution äWhich country’s law applies? äIn which country should the issue be resolved? äWhich technique should be used to resolve the conflict? äHow will the settlement be enforced? Forum Shopping

19. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Principle of Comity äA country will honor and enforce within its own territory the judgments of foreign courts äConditions of the principle: äReciprocity is extended äDefendant is given proper notice äJudgment does not violate domestic statutes or treaty obligations

20. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Arbitration Arbitration is the process by which both parties to a conflict agree to submit their cases to a private individual or body whose decision they will honor.

21. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business The Technological Environment Resources Agricultural land Rich natural resources Skilled labor Low-cost labor Infrastructure

22. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Intellectual Property äPatents äCopyrights äTrademarks äBrand names Intellectual property often forms the basis of a firm’s competitive advantage!

23. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business International Treaties Protecting Intellectual Property Rights äInternational Convention for the Protection of Industrial Property Rights (i.e., the Paris Convention) äBerne Convention for the Protection of Literary and Artistic Works äUniversal Copyright Convention äTrade-Related Intellectual Property Rights Agreement

24. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Political Risk Assessment Ownership risk Transfer risk Operating risk

25. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Examples of Political Risks äExpropriation äConfiscation äCampaigns against foreign goods äMandatory labor benefits legislation äCivil wars äInflation äKidnappings, terrorist threats äRepatriation äCurrency devaluations äIncreased taxation

26. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Levels of Political Risk Macropolitical risk Micropolitical risk

27. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Basic Country Knowledge äIs the country a democracy or dictatorship? äDoes country rely on free market or government controls? äDoes government view foreign firms as positive influence? äAre firm’s customers private or public? äDoes government act arbitrarily? äIs existing government stable?

28. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Relative Political Riskiness, 2006

29. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Insurance Against Political Risks äOverseas Private Investment Corporation (OPIC) äMultilateral Investment Guarantee Agency (MIGA)

30. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Thanks

31. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Assignment - 4 Closing Case: A Job for 007 Submission: 19 Jun 09 Gp to Present the case using multimedia 3 Gp Each gp for 15 Min Report with transparent top cover & metallic spiral Standard report submission procedure to be followed as per Lesikar’s Business Communication Convenient gp (10 to 15 in each group)

32. Click to edit Master title style Bangladesh University of Professionals Mgt of Int’l Business Assignment - 5 Explore the site: www.ft.com and write a short note on the site not exceeding a page (both side)www.ft.com Submission: 19 Jun 09 Existing 10 Gp Only a single page submission Computer composed