国际市场营销学 第四章 ThePolitics Law Environment

1、the politics & law environmentchapter 4chapter learning objectives1. what does the sovereignty of nations mean and how can it affect the stability of government policies, political parties and nationalism.2. the political risks of global business and the factors that affect stability3. the impor

2、tance of the political system to international marketing and its effect on foreign investments4. the impact of political and social activists, violence and terrorism on international business5. assessing and reducing the effect of political vulnerability6. how and why governments encourage foreign i

3、nvestment chapter learning objectives7. the four heritages of todays legal systems8. the important factors in jurisdiction of legal disputes9. issues associated with jurisdiction of legal disputes and the various methods of dispute resolution 10. the unique problems of protecting intellectual proper

4、ty rights internationally. ways to protect against piracy and counterfeiting 11. the legal differences between countries and how the differences can affect international marketing plans 12. the many issues of evolving cyberlaw introductionlthe political environment of countries is a critical concern

5、 for the international marketerlinternational law recognizes the sovereign right of a nation to allow or deny foreign firms to conductintroduction1. no single, uniform international commercial law governing foreign business transactions exists2. international marketers must comply with the laws of e

6、ach country within which it operate3. the legal systems of different countries are so disparate and complex 4. best to get expert legal advice when doing business in another country 4.1 sovereignty sovereignty refers to both the powers exercised by a state in relation to other countries and the supr

7、eme powers exercised over its own members a sovereign state is independent and free from all external control; enjoys full legal equality with other states; and governs its own territory4.2 stability of government policiesq: radical shifts in government philosophy can occur when:1. an opposing polit

8、ical party ascends to power2. pressure from nationalist and self-interest groups3. weakened economic conditions.4. bias against foreign investment or conflicts between governmentsstability of government policiesthe stability or instability of prevailing government policies is a major concern of fore

9、ign businesses a change in government, whether by election or coup, does not always mean a change in the level of political risk the ideal political climate for a multinational firm to conduct business is a stable, friendly government be knowledgeable about the philosophies of all major political pa

10、rties and their attitudes towards trade conversely, radical changes in policies toward foreign business can occur in the most stable governments as well nationalismnationalism refers to feelings of national pride and unity feelings of nationalism are manifested by: 1. call to “buy our countrys produ

11、cts only,” e.g., “buy american” 2. restrictions on imports, restrictive tariffs, and other barriers to trade4.3 political risks of global businessrisks of global business include: 1. confiscation, expropriation, nationalization and domestication2. economic risks, and3. other risksconfiscation, the m

12、ost severe political risk, is the seizing of a companys assets without paymentexpropriation is where the government seizes an investment, but some reimbursement for the assets is made; nationalization refers to the government seizes an investment and becomes a government run entitydomestication occu

13、rs when the government mandates local ownership and greater national involvement in a foreign companys managementconfiscation, expropriation, nationalization and domesticationeconomic risksinternational firms face a variety of economic risksgovernments can impose restraints on business activity to:a

14、) protect national security b) protect an infant industry c) to conserve scarce foreign exchanged) raise revenue e) retaliate against unfair trade practiceseconomic risks2. local-content laws3. import restrictions4. tax controls1. exchange controls5. price controls6.labor problemsother political ris

15、ks of global business2. political and social activists3. violence and terrorism4. cyberterrorism1. political sanctions4.4assessing political vulnerabilityno absolute guidelines to assess if a firm faces political risks no specific guidelines to determine a products political vulnerability, but there

16、 are some generalizationspolitically sensitive products include those that:1. effect on the environment, 2. exchange rates 3. national and economic security 4. affect public health, e.g., genetically modified (gm) foods forecasting political riskdecide if risk insurance is necessarydevise an intelli

17、gence network and an early warning systemdevelop contingency plans for unfavorable future political eventsbuild a database of past political events for use in predicting future problemsinterpret the data gathered by a companys intelligence network in order to advise and forewarn corporate decision m

18、akers about political and economic situations4.5 reducing political vulnerabilityrelations between governments and mncs are generally positive if the investment: improves the balance of payments by increasing exports or reducing imports through import substitution uses locally produced resourcestran

19、sfers capital, technology, and/or skillscreates jobs, and/or makes tax contributions3. expanding the investment base4. licensing5. planed domestication2.jiont ventures6. political payoffsstrategies to minimize political vulnerablility and risk1. focus on the social and economic goals and good corpor

20、ate citizenship2. transfer technology3. generate export sales4. stimulate growth and development of local industry1. create local employment5. conserve foreign exchange4.6 reasons to encourage foreign investment by governmentto accelerate the development of an economy esp. toward economic goals6. me

21、et a combination of these expectations(1) common law, derived from english law and found in england, the united states, canada, and other countries once under english influence(2) civil or code law, derived from roman law and found in germany, japan, france, and in non-islamic and non-marxist countr

22、ies(3) islamic law, derived from the interpretation of the koran and found in pakistan, iran, saudi arabia, and other islamic states(4) a commercial legal system in the marxist-socialist economies of russia and the republics of the former soviet union, eastern europe, china, whose legal system is ba

23、sed on the economic, political, and social policies of the state4.7 bases for legal systemsthe bases for the majority of the legal systems of the world include:common and code lawunder code law, the legal system is generallydivided into three separate codes: (1) commercial code(2) civil code, and (3

24、) criminal codelthe basis for common law is tradition, past practices, and legal precedents set by the courts through interpretations of statutes, legal legislation, and past rulingslcommon law seeks “interpretation through the past decisions of higher courts which interpret the same statutes or app

25、ly established and customary principles of law to a similar set of facts” lcode law is based on an all-inclusive system of written rules (codes) of lawislamic lawlthe koran forms the basis for the shariah (islamic law)lit encompasses religious duties and obligations and patterns of social and econom

26、ic behavior for all individualslit includes issues such as property rights, economic decision making, and types of economic freedom lthe overriding objective of the islamic system is social justiceislamic lawlislamic law prohibits the payment of interest lislamic doctrine advocates risk sharing, ind

27、ividuals rights and duties, property rights, and the sanctity of contract lemphasis placed on the ethical, moral, social, and religious dimensions to enhance equality and fairness for the good of society lprohibits investment in activities that violate the shariah, e.g., business dealing with alcoho

28、l, gambling, and casinosmarxist-socialist tenetslwith the collapse of communism, the former eastern bloc countries have developed a commercial legal system to engage in international commerce lthe czech republic and poland revised and reinstituted preworld war ii commercial legal codesmarxist-social

29、ist tenetslussr and china have had to build from scratch an entire commercial legal system with respect to private ownership, contracts, due process, and other legal mechanismslchina and russia differ as russia is moving toward a democratic system, whereas china is attempting to activate a private s

30、ector within a multi-component or mixed economy, but their legal systems are still nascent ldetermining whose legal system has jurisdiction when a commercial dispute arises is another problem of international marketing.lthe world court at the hague and the international court of justice resolve inte

31、rnational disputes between sovereign nations of the world rather than between private citizens.legal disputes can arise in three situations: (1) between governments, (2) between a company and a government,(3) and between two companies4.8 jurisdiction in international legal disputesjurisdiction in in

32、ternational legal disputeslthe world court can adjudicate disputes between governments, but disputes in situations 2 and 3 must be handled in the courts of the country of one of the parties involved or through arbitration.lwhen international commercial disputes must be settled under the laws of one

33、of the countries concerned, the paramount question in a dispute is: which law governs? jurisdiction is generally determined in one of three ways: (1) on the basis of jurisdictional clauses included in contracts (2) on the basis of where a contract was entered into, or (3) on the basis of where the p

34、rovisions of the contract were performed4.9 international dispute resolutioninternational disputes can be resolved by: lconsultation（协商）dispute resolution begins with bilateral consultations.lconsultation is the first step to resolve any dispute informally.lconciliation (also known as mediation) （调解

35、）is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differenceslconciliation sessions are private and all conferences between parties and the mediator are confidential international dispute resolutioninternational disputes can be resolved by: lthe arbitr

36、ation（仲裁） procedure calls for the parties involved to select a disinterested and informed party or parties as referee to determine the merits of the case and make a judgment that both parties agree to honor lin most countries, decisions reached in formal arbitration are enforceable under the law lli

37、tigation（诉讼） deals with filing a lawsuit to settle commercial disputesllawsuits should be avoided for many reasons including cost, frustrating delays, and extended aggravation, and fear of creating a poor image, damaging public relations, fear of unfair treatment in a foreign courtlfirms spend milli

38、ons of dollars establishing brand names or trademarks to symbolize quality and design only to be counterfeited and piratedlpiracy and counterfeiting leads to lost sales from the unauthorized use of u.s. patents, trademarks, and copyrights which amount to about $60 billion annually as well as lost jo

39、bslcounterfeited pharmaceutical drugs can also lead death and bad publicitylthere is inadequate protection from products being counterfeited or pirated as many countries do not recognize trademarks and patents registered in other countries4.10 intellectual property rights, counterfeiting and piracyl

40、in the united states, a common-law country, ownership of intellectual property rights is established by prior uselin many code-law countries, ownership is established by registration rather than by prior uselfor example, a trademark in jordan belongs to whoever registers it first in jordan so there

41、are “mcdonalds” restaurants, “microsoft” software, and “safeway” groceries all legally belonging to a jordanianintellectual property rights, counterfeiting and piracythe three major international conventions include:lthe paris convention for the protection of industrial property, commonly referred t

42、o as the paris convention, includes the united states and 100 other countrieslthe inter-american convention includes most of the latin american nations and the united states.lthe madrid arrangement, which established the bureau for international registration of trademarks, includes 26 european count

43、ries.international conventionsmany countries participate in international conventions designed for mutual recognition and protection of intellectual property rightspatent law: the u.s. versus japanloperates under “first to invent” rule operates under “first to register” rule protects individual inve

44、ntors promotes technology sharing patent applications secret patent applications public patents granted in up to 24 months patents granted in 4 to 6 years patents valid for 17 years from patents valid 20 years from application date issued usajapan4.11 commercial law within countrieslwhen doing busin

45、ess in more than one country, a firm must comply with different legal systems.lthis problem is especially troublesome for the marketer who formulates a common marketing plan to be implemented in several countries.marketing lawslall countries have laws regulating marketing activities in promotion, pr

46、oduct development, labeling, pricing, and distribution channels lin austria, premium offers, free gifts, or coupons are considered as cash discounts and are prohibitedlpremium offers in finland are allowed as long as the word free is not used lfrench law permits sales only twice a year, in january a

47、nd august lmultinational corporations also laws on environmental issues such as industrial pollution, hazardous waste disposal, and rampant deforestation lgreen marketing laws focus on environmentally friendly products and on product packaging and its effect on solid waste management lgermany has pa

48、ssed the most stringent green marketing laws that regulate the management and recycling of packaging wastegreen marketing legislationlthe european community, japan, and many other countries have begun to actively enforce their antitrust laws patterned after those in the united stateslantimonopoly, p

49、rice discrimination, supply restrictions, and full-line forcing are areas which lead to less competition and higher prices for consumers antitrust issues4.12 cyberlaw: unresolved issueslexisting internet law is vague or does not completely cover such issues as the protection of domain names, taxes,

50、jurisdiction in cross-border transactions, and contractual issues lthe european union, the u.s. and many other countries are drafting legislation to address the myriad legal questions not clearly addressed by current law llaws being considered deal with cybersquattersthose who buy and register descriptive nouns, geographic names, ethnic groups, pharmaceutical substances and other similar des