Global Marketing ch5

Political Environment

The external broad environment that includes governmental institutions, political parties, and organizations through which a country’s people and rulers exercise power.

Sovereignty

Supreme and independent political authority of a nation.

Political Risk

Risk of change in political environment or government policy that adversely affects a company's ability to operate effectively.

Expropriation

Governmental action to dispossess a foreign company or investor of their assets.

Nationalization

A government action that takes control of some or all enterprises in an entire industry.

Creeping Expropriation

Occurs when the government limits the economic activities of foreign firms without outright taking their assets.

International Law

Rules and principles nations consider binding among themselves pertaining to aspects like property and trade.

Common Law

Legal system where disputes are decided based on past judicial decisions (case law).

Civil Law

Legal system rooted in comprehensive codes, reflecting the structural concepts of the Roman Empire.

Islamic Law

Legal system governing Muslim conduct based on Sharia, which includes rules from the Koran and Hadith.

Intellectual Property

Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields.

Patent

Exclusive right to make, use, and sell an invention for a specified period of time.

Trademark

Distinctive mark or emblem used to distinguish a product from others.

Copyright

Establishes ownership of a written, recorded, performed, or filmed creative work.

Bribery

The corrupt practice of demanding or offering something of value to influence business negotiations.

Antitrust Laws

Laws designed to prevent business practices that restrict competition.

Licensing

A contractual agreement where a licensor allows a licensee to use intellectual property in return for compensation.

Trade Secrets

Confidential information that has commercial value and is not publicly known.

Tax Policies

Government regulations that influence how taxes are collected, which can motivate tax avoidance.

International Court of Justice (ICJ)

Judicial arm of the United Nations located in The Hague, settling disputes between nations.

Confidentiality Contracts

Agreements to protect trade secrets and confidential information from disclosure.

Judicial Jurisdiction

A court's authority to rule on particular types of cases involving parties from different countries.

Political Culture

The culture within which political processes occur, reflecting the importance of the government and legal system.

Market Access

Opportunities for companies to enter and operate in foreign markets.

Sovereignty Erosion

The loss of national economic sovereignty due to the integration of global markets.

Political Trends

Changes in the political environment that can affect business operations and investment decisions.

Market Information

Data collected on market dynamics, political conditions, and consumer behavior.

Seizure of Assets

Government actions like expropriation or nationalization, impacting foreign investments.

Prompt Compensation

Compensation provided to investors when expropriated assets are taken by the government.

Corruption

Dishonest or fraudulent conduct, typically involving bribery.

Dependency Risk

Risk associated with reliance on a major hostile power or unstable political regime.

Harassment,

Using intimidation or threats in business negotiations or operations.

Conflict Resolution

Methods employed to resolve disputes, such as litigation or arbitration.

Arbitration

Settlement of disputes outside of court, agreed upon by both parties.

Haram

Practices forbidden in Islamic Law.

Legal Compliance

Act of conforming to laws and regulations applicable in a legal jurisdiction.

Disputes between Nations

Issues of public international law resolved through the International Court of Justice.

Black Market

Illegal trade of goods and services that circumvent legal regulations.

Separation of Powers

Distribution of political authority among different branches of government.

Social Unrest

Disruption in society due to protests, strikes, or unrest against government policies.

Exchange Controls

Government regulations to restrict currency exchange or limit the movement of capital.

Goodwill

An intangible asset representing a business's reputation and customer relationships.

Legal Jurisdiction

The territory or subject matter over which a court has authority.