International Political and Legal Systems: Sovereignty, Laws, and Disputes

What is sovereignty

A state's power to govern itself without external control.

What are the four powers of a sovereign state

Legislative, executive, judicial, and taxation power.

What is legislative power

The authority to make laws for its territory.

What is executive power

The authority to enforce laws and manage public affairs.

What is judicial power

The authority to interpret laws and administer justice.

What is taxation power

The authority to collect taxes to fund government services.

What is the ideal political climate for international marketing

A stable and friendly government.

What are the causes of political instability

Inherent instability, political shifts, nationalism, animosity, and trade disputes.

What are the three main forms of government

Monarchy or dictatorship (one), aristocracy or oligarchy (few), and democracy (many).

What is nationalism

Intense feeling of national pride and unity that can limit foreign business.

How does nationalism differ from animosity

Nationalism is general pride; animosity is directed at a specific country.

What is confiscation

Seizing a company's assets without payment.

What is expropriation

Seizing investment with some reimbursement; usually becomes state-owned.

What is domestication

Gradual transfer of foreign investment to national control and ownership.

What are political sanctions

Boycotts or restrictions one nation imposes on another's trade.

How can firms reduce political vulnerability

Joint ventures, licensing, expanding investment base, domestication, bargaining, or payoffs.

What is foreign business transaction law

The rules governing business activities across countries.

What are antitrust laws

Laws to promote fair competition and prevent monopolies.

What is GDPR

EU regulation protecting personal data and privacy.

What are the four heritages of today's legal systems

Common law, civil/code law, Islamic law, and commercial (Marxist-socialist) law.

Common law is based on what

Tradition, past court decisions, and precedent.

Civil or code law is based on what

Comprehensive written codes: civil, commercial, and criminal.

How does IP ownership differ under common vs. code law

Common law—ownership by use; code law—ownership by registration.

What is Islamic law (Shari'ah) based on

The Quran, emphasizing moral and social justice.

List the five prohibitions in Islamic banking. Riba (interest), Gharar (uncertainty), Maysir/Qimar (gambling), Jahal (ignorance), Rishwah (corruption).

Where can disputes between governments be handled

The International Court of Justice (ICJ) at The Hague.

What are the three situations where legal disputes can arise

Between governments, between a company and government, or between two companies.

What determines jurisdiction in international disputes

Jurisdiction clauses, where contract made, and where performed.

What is conciliation

Third party helps mediate; not legally binding.

What is arbitration

A neutral party decides case; legally binding in most countries.

What is litigation

Court lawsuit; formal, expensive, and public.

Why protect intellectual property

It's among a company's most valuable assets.

What is piracy

Unauthorized use or imitation of another's property (like software).

What does "prior use vs. registration" mean

Common law protects first to use; code law protects first to register.

What is EU 261

EU law protecting air passenger rights for delays and cancellations.

What is marketing research

Systematic gathering, recording, and analyzing of data for decision-making.

Why is international marketing research challenging

Cultural differences, communication barriers, and data reliability issues.

What are the three basic marketing research needs

(1) General country info, (2) Forecasting future trends, (3) Specific info for marketing plan.

What are the six steps in the research process

Define problem, determine sources, weigh cost/benefit, gather data, analyze/interpret, communicate results.

What is primary data

New data collected firsthand for current study.

What is secondary data

Data previously collected for another purpose.

What are common problems with secondary data

Limited availability, reliability, and comparability.

What is quantitative research

Structured questions and large samples for numerical data.

What is qualitative research

In-depth, unstructured, smaller-scale insights.

What issues can affect gathering primary data

Language barriers, literacy, willingness to respond, poor sampling.

What is back translation

Translating a survey to another language and back to ensure accuracy.

What are examples of internet-based research

Online surveys, focus groups, web tracking, and email panels.

What is the European Union (EU)

A political and economic alliance of 27 European nations.

What treaty founded the EU

The Maastricht Treaty (1992).

What is an economic union

Countries integrate economically and politically, sharing markets and policies.

What is a free trade area (FTA)

Countries reduce or remove trade barriers between members.

What is a customs union

A free trade area with a common external tariff.

What is a common market

Free flow of goods, labor, and capital with unified external tariffs.

What is a political union

Most integrated; full economic and political unity.

What is the European Commission

Initiates and enforces EU policies.

What is the Council of Ministers

The EU's main decision-making body.

What is the European Parliament

EU legislative body that amends and adopts laws.

What is the European Court of Justice (ECJ)

The supreme court of the EU.

What are key reasons for Brexit

Sovereignty, immigration control, and economy.

What are examples of other economic unions

CARICOM and Eurasian Economic Union (EEU).

What characterizes Asia's recent economic growth

Fastest-growing region with strong tech and consumer markets.

When did Asia's GDP surpass the rest of the world

2020 (at purchasing-power parity).

What major event affected China's trade

Joining the WTO and receiving U.S. PNTR in 2000.

What are "Greater China" regions

Mainland China (PRC) and Taiwan (ROC).

What caused Japan's slow growth in the 1990s

Faulty policies, weak politics, global issues, and cultural limits.

What challenges does Japan face today

Aging population, high debt, natural disasters, low consumer demand.

What are India's major issues

High tariffs, corruption, weak IP protection, and bureaucracy.

What is the "Four Asian Tigers"

Hong Kong, Singapore, South Korea, and Taiwan—early industrial success stories.

What is ASEAN

Association of Southeast Asian Nations—promotes economic cooperation.

What is APEC

Asia-Pacific Economic Cooperation—encourages free trade and regional growth.