Political Environment in International Marketing

These flashcards cover essential vocabulary relating to the political environment affecting international marketing.

Sovereignty

The supreme authority of a state to govern itself and make its own laws without external interference.

Political Risks

The potential for government actions to negatively affect the profitability or operations of foreign businesses.

Expropriation

The action of a government in taking over a foreign-owned business or property with compensation.

Domestication

The process where a host government gradually restricts or mandates a foreign investment's operations to ensure local control and benefit.

Nationalism

An intense feeling of pride in one's nation, which can lead to policies favoring domestic over foreign businesses.

Political Sanctions

Official actions taken by countries to restrict trade with a particular country to influence its actions.

Political Vulnerability

The susceptibility of a business to political risks in a foreign market.

Cyberterrorism

Use of the internet or computer technology to conduct terrorist activities.

Political Bargaining

The negotiation process that companies may engage in with governments to secure favorable treatment or agreements.

Political Payoffs

Payments made to government officials to gain influence or favorable treatment, often considered bribery.