THE POLITICAL, LEGAL AND TECHNOLOGICAL ENVIRONMENT - PowerPoint PPT Presentation

Loading...

PPT – THE POLITICAL, LEGAL AND TECHNOLOGICAL ENVIRONMENT PowerPoint presentation | free to view - id: a3b19-ZGE1N



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

THE POLITICAL, LEGAL AND TECHNOLOGICAL ENVIRONMENT

Description:

Since the days of communism, most countries moved first to the political right, ... Fasting. Pilgrimage. A sixth pillar? (jihad) 2-13. Socialist Law ... – PowerPoint PPT presentation

Number of Views:1103
Avg rating:3.0/5.0
Slides: 28
Provided by: bus7
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: THE POLITICAL, LEGAL AND TECHNOLOGICAL ENVIRONMENT


1
CHAPTER 2
  • THE POLITICAL, LEGAL AND TECHNOLOGICAL ENVIRONMENT

2
Political Environment
  • Structure of Government
  • Ideology
  • Communism government ownership
  • Capitalism- private ownership
  • Socialism both private and govt ownership
  • Political Parties
  • Single Party one party
  • Dual Party two parties
  • Multiple Party more than two parties

3
Political Environment
  • CHINA
  • Emerging economic power
  • Complex and risky
  • Balance national, immediate needs of the people
    with challenge of modernization
  • Relationship with Taiwan
  • Steps to open up the economy
  • Privatizing state enterprises - Speeding up
    program to convert state enterprises into
    shareholder-owned corporations
  • Accelerating worker retraining building low-cost
    housing, and providing other social services
  • Reducing tariffs
  • Encourage foreign investment expanding capital
    markets by authorizing new stock listings
  • Allowing government bodies to sell off state
    enterprises

4
Political Environment
  • CHINA
  • Four Fears of Chinese people
  • Inflation
  • Unemployment
  • Anger of farmers
  • Increasing corruption

5
Political Environment
  • EUROPE
  • Political situation?
  • MNCs doing business with individual countries
    risk action by the EU itself
  • Businesses must be aware of political happenings
    in the immediate area as well as throughout the
    continent
  • Strong opposition to US led intervention in Iraq
    spills over into business relationships
  • Fragmented countries or a giant, interwoven
    region
  • Unemployment is the Achilles heel of
    integration
  • Germany and Italy have less jobs today than in
    1993.
  • 16 million people are currently looking for work
    in Europe
  • Employment law is so protective of workers that
    businesses dont want to hire
  • Franco-German relations are the cornerstone of a
    united Europe.

6
Political Environment
  • EUROPE
  • Germany
  • May want to secede from European Union
  • 34 days paid vacation per year
  • Only receive 30 of net income
  • BMWs 30 more expensive in Germany than US
  • 7.00 for a gallon of gas

7
Political Environment
  • Russia
  • Political and economic situation intertwined
  • MNCs are reluctant to do business
  • Companies refuse to pay taxes
  • 40 of businesses use barter as a way of life
  • High unemployment
  • Bleak economic outlook
  • Neglect, corruption, and confusing economic
    policy
  • Decaying infrastructure
  • Reform stalled by a political quagmire
  • Government must keep the economy on an even keel
    while attracting more foreign investment

8
Political Environment
  • Russia
  • Population decreasing at an alarming rate
  • Life expectancy
  • Fertility rate
  • Poverty
  • Poor health care
  • Environmental concerns

9
Political Environment
  • Central and Eastern Europe
  • Many of these countries have joined the EU
  • Political situation is in a state of flux
  • Difficult transition to a market economy
  • Problems include high unemployment, trade
    deficits
  • Since the days of communism, most countries moved
    first to the political right, then the left, and
    now back to the right
  • Government plan to streamline the economy and
    get the country moving has been fraught with
    problems
  • More successful countries include Estonia,
    Latvia and Lithuania

10
Political Environment Middle East
  • Doing business in the Middle East
  • requires knowledge of regulations, legal
    environment, Islam
  • Is risky and dangerous
  • Islamic fundamentalists have become aggressive
    toward US and allies
  • MNCs must evaluate legal framework in each market
    in which they want to do business

11
Global Foundations of Law
12
Legal and Regulatory Environment
  • Islamic Law
  • Pillars of Islamic Law
  • Faith
  • Prayer
  • Charity
  • Fasting
  • Pilgrimage
  • A sixth pillar? (jihad)

13
Legal and Regulatory Environment
  • Socialist Law
  • Marxist socialist system - continues to influence
    regulations in former communist countries. Found
    in former Soviet Union, China, Vietnam, North
    Korea and Cuba.
  • Property owned by state
  • Common Law
  • English law - the foundation of legislation in
    the United States, Canada, England, Australia,
    New Zealand, and others
  • Civil or Code Law
  • Derived from Roman law and is found in the
    non-Islamic and non-socialist countries such as
    France and Louisiana in the US.

14
Basic Principles of International Law
  • Sovereignty and Sovereign Immunity
  • An international principle of law which holds
    that governments have the right to rule
    themselves as they see fit

15
Basic Principles of International Law
  • International Jurisdiction
  • A jurisdictional principle of international law
    which holds that every country has jurisdiction
    over its citizens no matter where they are
    located
  • Nationality principle
  • Territoriality principle
  • Protective principle

16
Basic Principles of International Law
  • Doctrine of Comity
  • A jurisdictional principle of international law
    which holds that there must be mutual respect for
    the laws, institutions, and government of other
    countries in the matter of jurisdiction over
    their own citizens

17
Basic Principles of International Law
  • Act of State Doctrine
  • A jurisdictional principle of international law
    which holds that all acts of other governments
    are considered to be valid by U.S. courts, even
    if such acts are illegal or inappropriate under
    U.S. law

18
Basic Principles of International Law
  • Treatment and Rights of Aliens
  • Countries have the legal right to refuse
    admission of foreign citizens and to impose
    special restrictions on their conduct, right of
    travel, where they can stay, and what business
    they may conduct
  • Nations also can deport aliens

19
Basic Principles of International Law
  • Forum for Hearing and Settling Disputes
  • U.S. courts can dismiss cases brought before them
    by foreigners however they are bound to examine
    issues such as
  • Where the plaintiffs are located,
  • Where the evidence must be gathered
  • Where property to be used in restitution is
    located

20
Legal and Regulatory Issues
  • Foreign Corrupt Trade Practices Act (FCPA)
  • - Illegal to influence foreign officials through
    personal payment or political contributions
  • - Obtain or maintain business
  • - Objective Stop US MNCs from corruption in
    foreign governments and upgrade the image of the
    US abroad
  • Critics fear loss of business where bribery is a
    tradition. However, US exports to bribe prone
    countries has INCREASED!
  • The IRS can audit books at any time. IRS looks
    for 5,000 or slush funds
  • - Experience has shown that MNCs can live within
    the guidelines established by the FCPA
  • - More countries (OECD) are adopting similar
    acts

21
Legal and Regulatory Issues
  • Bureaucratization
  • -Restrictive business practices are one of the
    biggest problems facing MNCs
  • -Regulations reduce the ability of foreigners to
    compete Local politics chosen over national
    concerns
  • Privatization
  • - Privatization is the selling off of
    state-owned services/businesses to private, free
    enterprises
  • - The objective is to encourage more effective
    and efficiently-run businesses
  • Examples include
  • Deregulation of German telecommunications
  • Chinese military ordered to sell more than 10,000
    companies

22
Additional Legal and Regulatory Issues
  • Bribery and Corruption
  • Nations most prone to corruption
  • low GDP
  • Nations least prone to corruption
  • high GDP

23
Technologies That Will Influence International
Business
Internet
Biotechnology
Artificial Intelligence
International Business
Automatic Translation Telephones
Silicon Chips
Satellites
Supercomputers
Nanotechnology
24
Technological Environment
  • Telecommunications
  • Poor communication services poor economic
    growth
  • Wireless more affordable than installed phone
    lines
  • Technology has reduced middle management white
    collar jobs
  • Global competition has forced some MNCs to
    outsource jobs
  • Internet - people have access to information from
    millions of sources
  • Asia, Europe and North America Largest numbers
    of Internet Users
  • English, Chinese, Japanese, and Spanish top
    four Internet languages
  • Copenhagen, Denmark best location to establish
    an e-business

25
World Internet Usage
26
Expected Winnersin Selected Occupations
Computer software engineers, applications
Computer support specialists
Computer software engineers, systems software
Network and computer systems administrators
Personal and home care aids
Medical assistants
Percentage change for 2000-2010
27
Expected Losersin Selected Occupations
Railroad brake, signal, and switch operators
Telephone operators
Loan interviewers and clerks
Meter readers, utilities
Farmers and ranchers
Order clerks
Insurance claims and policy processing clerks
Percentage change for 2000-2010
About PowerShow.com