8 Legal systems Rules – Laws – Regulation of behaviourProcesses by which laws are enforced and grievances are resolved International laws Laws of the country of origin Laws of the host country Main types of legal systems Common law Civil law (Code of Law) Theoretical law (Islamic law) Social law A country`s legal system is of paramount importance for international affairs. A country`s laws regulate business practices, define how business transactions are to be conducted, and determine the rights and obligations of those involved in business transactions. Like the economic system of a country, the legal system is influenced by the dominant political system (although it is also strongly influenced by historical tradition). A country`s government sets the legal framework within which companies do business – and often the laws governing business reflect the dominant political ideology of those in power. 50 Corruption since 2004 Corruption is well documented in every society, from Congo`s banks to the Dutch royal family`s palace, from Japanese politicians to Brazilian bankers, from Indonesian government officials to the NYPD. According to Transparency International, an independent nonprofit organization dedicated to detecting and fighting corruption, companies and individuals around the world spend about $400 billion a year on bribes related to government procurement contracts alone. 20 5. International law and local legal environmentCultural values and legal systems Japan`s legal population is small. In the United States, the emphasis is on explicit contracts and dependence on the legal system is high. In China, relations (guanxi) and oral contracts are important. In Brazil, Jeitinho is used to find solutions outside the legal system. Pre-planning Arbitration and enforcement The slide discusses risk mitigation strategies in the context of policy dialogue, lobbying and communication.

The important steps that the company must pursue are communication at the political level, addressing the different stakeholders and target groups, as well as communication with employees and customers. Presentation of this slide series entitled Risk Mitigation Strategies Policy Dialogue Level of lobbying and communication ppt PowerPoint Icon Grid. The topics covered in these slides are communication, stakeholders, target groups, employees. It is a fully editable PowerPoint presentation and can be downloaded immediately. Download it now and impress your audience. 75 Next session Weekly activity: Political riskDiscuss this potential dilemma: “High political risk forces companies to seek a quick return on their investments. Striving for a quick return has its dangers. Consider how this practice could expose companies to exploitation charges. Could this lead to increased political risk? Justify your argument with examples. Word Count: 13 Impact on Government Positive Impact Negative Impact Increased Economic Development Expanded infrastructure Transfer of modern management techniques Greater interdependence between trading partners Negative effects MNEs increase power MNEs outsource costs to countries Competition leads to many concessions MNEs influence local politics Companies created in low-tax countries Creation of a Company in low-tax countries Pressure for Reduction of social benefits Make your presentation with our colorful political and legal court icon easily customizable in PowerPoint PPTX PNG and editable EPS format. It is designed to grab the attention of your audience.

Available in all editable formats, including PPTx, png, and eps, you can optimize it to convey your message with ease. 17 Political ideologies Most modern societies are politically pluralisticStemming from differences in language, ethnicity, tribal groups or religions 26 6. Issues across national borders European Union Antitrust Laws Foreign Bribery Practices Act 1977 (FCPA) The FCPA was designed to encourage the payment of money or anything of value to a foreign official, foreign political party or candidate for a ban on foreign political office for the purpose of obtaining, maintain or direct business. 4 Attractiveness of the countryBenefits In the broadest sense, the long-term monetary benefits of doing business in a country depend on the size of the market, the current wealth (purchasing power) of consumers in that market, and the likely future prosperity of consumers. International companies need to be aware of this distinction, but they also need to keep an eye on a country`s likely future prospects. In 1960, South Korea was considered another impoverished Third World nation. In 2003, it was the 11th largest economy in the world in terms of GDP. By identifying and investing in a potential future economic star at an early stage, international companies can build brand loyalty and gain experience in that country`s business practices.

On the other hand, latecomers may find that they lack the brand loyalty and experience required to achieve a meaningful market presence. In the language of corporate strategy, new entrants into potential future economic stars can gain significant advantages as pioneers, while late entrants may fall victim to disadvantages for latecomers. (First-mover benefits are first-time market advantages. The disadvantages of latecomers are the handicap that latecomers may suffer.) A number of political, economic and legal factors determine the cost of doing business in a country. In terms of political factors, the cost of doing business in a country can be increased by having to pay for powerful politicians who are allowed by the government to do business. In terms of economic factors, one of the most important variables is the sophistication of a country`s economy. It can be more expensive to do business in relatively primitive or underdeveloped economies due to a lack of infrastructure and business support. When it comes to legal factors, it can be more expensive to do business in a country where local laws and regulations set strict standards for product safety, occupational safety, pollution, etc. (as compliance with these regulations is costly). In addition, local laws that do not adequately protect intellectual property can result in the “theft” of an international company`s intellectual property and loss of revenue. As with costs, the risks of doing business in a country are determined by a number of political, economic and legal factors.

Political risk has been defined as the likelihood that political forces will cause radical changes in a country`s business environment that will negatively impact a company`s profits and other objectives. Social unrest can lead to abrupt changes in government and policy or, in some cases, protracted civil wars. Economically, economic risks arise from economic mismanagement by a country`s government. Economic risk can be defined as the likelihood that economic mismanagement will lead to radical changes in a country`s business environment that affect the profits and other objectives of a particular company. If legal protections are weak, companies are more likely to break contracts and/or steal intellectual property if they consider it in their best interest. For example, legal risk could be defined as the likelihood that a business partner will opportunistically breach a contract or expropriate property rights. The overall attractiveness of a country as a potential market and/or investment location for an international company depends on the weighting of the benefits, costs and risks associated with doing business in that country. 26 Totalitarianism Typically theocratic or secularOpposite end of the political spectrum of democracy Order is often imposed by the military A single party, group or individual monopolizes political power Lack of constitutional guarantees Does not recognize or allow opposition Authoritarianism (tribal, right-wing affiliation) Communism/ Socialism 67 Intellectual property rightsIntellectual property refers to the property that the Product of the activity Intellectual property laws are a very important stimulus for innovation and creative work The protection of intellectual property rights varies considerably from country to country Intellectual property rights are established by patents, copyrights and trademarks. A patent gives the inventor of a new product or process exclusive rights to manufacture, use or sell that invention for a certain period of time. Copyright is the exclusive legal rights of authors, composers, playwrights, artists and publishers to publish and distribute their works as they see fit.