4-1 4-1 Political Environment and Global Business 4-2 4-2 How Government Discourages Global Business 4-3 4-3 How Government Encourages Global Business InternationalBusine ss Chapter4 Government and Global Business [P.84-111]
4-14-1 Political Environment and Global Business
4-24-2 How Government Discourages Global Business
4-34-3 How Government Encourages Global Business
InternationalBusinessChapter4
Government and Global Business[P.84-111]
Discuss various political systems around the world. Explain the political environment for a company’s
host and home countries.
InternationalBusinessChapter4-1Political Environment and Global Business
InternationalBusiness
A political system is a complete set of institutions, interest groups (such as political
parties, trade unions, lobby groups), the relationships between those institutions and
the political norms and rules that govern their functions (constitution, election law).
Chapter4-1Political Environment and Global Business
InternationalBusinessChapter4-1Political Environment and Global Business
Totalitarianism—political control is held by one person or a small group
Mixed systems—characteristics of both systems
Totalitarianism—political control is held by one person or a small group
Mixed systems—characteristics of both systems
All citizens take part in making the rules that govern them
Political control is held by one person or a small group
Political control is held by one person or a small group
Anarchy
Aristocracy
Confederation
Communist state
Demarchy
Democracy
Direct democracy
Representative democracy
Despotism
DictatorshipMilitary dictatorshipMilitary juntaAuthoritarianismTotalitarianismAutocracy
EmpireFascist stateFederationFeudalismGerontocracy
EmpireFascist stateFederationFeudalismGerontocracyGreen stateInterregnumCaretaker governmentInterrexProvisional governmentTransitional governmentKleptocracyMatriarchyMeritocracyMinarchismMonarchyEnlightened absolutismAbsolute monarchyConstitutional monarchyElective monarchyHereditary monarchyRegencyNation-stateOligarchyParliamentary
PatriarchyPlutocracyPolice statePolyarchyPresidentialPuppet stateRepublicSocialist stateCollective leadershipSoviet RepublicSupranational unionSynarchyTechnocracyThalassocracyTheocracyTheodemocracyTimocracyTribalChiefdomTyrannyUnitary stateWelfare state
InternationalBusinessChapter4-1Political Relations with Host and Home Countries
InternationalBusinessChapter4-1Political Relations with Host and Home Countries
•Global companies operating in host countries
•Global companies’ relationships with home countries
InternationalBusinessChapter4-1Political Relations with Host and Home Countries
•host countries
•home countries
InternationalBusinessChapter4-1Political Relations with Host and Home Countries
•host countries
•home countries
The country where the company is a guest
The country where the company is headquartered
Which is the image a HOME country gets when the multinational misbehaves in a HOST country?
InternationalBusinessChapter4-1Political Relations with Host and Home Countries
Is the process whereby people function as good citizen and are sensitive to their surroundings
InternationalBusinessChapter4-2How Government Discourages Global Business
Describe laws and trade barriers that can discourage global business.
Explain how political risks can disrupt global business activities.
Identify the major types of taxes that governments impose around the world.
InternationalBusinessChapter4-2Government Activities Influence Business
Laws that protect workers and consumers
Trade barriersTariffsQuotasBoycottsLicensing requirements
InternationalBusinessChapter4-2Government Activities Influence Business
Laws that protect workers and consumers
Occupational hazards (wearing a belt, hat, earplugs)
Civil rights (Non discriminating jobs)
Human rights (Not employing kids)
Consumer protection (list ingridients)
Forced vacations
Etc.
InternationalBusinessChapter4-2Government Activities Influence Business
Laws that protect workers and consumers
Some countries demand that a % of the employees got to be NATIONALS
Some countries don’t allow woman to work
Some countries impose severe rules. Example Venezuela and pregnant women.
InternationalBusinessChapter4-2Government Activities Influence Business
Trade barriersTariffsQuotasBoycottsLicensing requirements
InternationalBusinessChapter4-2Government Activities Influence Business
Companies may feel discouraged to start
business in other countries by all those rules and regulations.
InternationalBusinessChapter4-2Political Risks in other countries
•Trade sanctions•Expropriation•Economic nationalism•Civil unrest or war
InternationalBusinessChapter4-2Political Risks in other countries
InternationalBusinessChapter4-2Political Risks in other countries
International Taxes
Customs dutySales taxExcise taxPayroll-related taxValue-added tax (VAT)Income taxes
InternationalBusinessChapter4-4How Government Encourages Global Business
Explain government actions that can encourage global business activities.
Discuss U.S. government agencies that can help reduce international risk.
Describe how tax incentives encourage global business.
InternationalBusinessChapter4-4Encouraging International Business
Free-trade zonesMost favored nation (MFN)Free-trade agreementsCommon markets
InternationalBusinessChapter4-4Encouraging International Business
Government Protection from International Risk
Export-Import Bank of the United States (EXIM)
Overseas Private Investment Corporation (OPIC)
InternationalBusinessChapter4-4Encouraging International Business
Tax Incentives
Corporate tax deduction on income earned by foreign subsidiaries
Double-taxation avoidance treatiesTax holiday
This is your final RESEARCH PAPER. Due on the Final Exam date.
Sucel y Jessica
Elizabeth y Yeni
Zuri y Jorge
Jose, Kirenia y Wilder
Javier y Zulema
Explore economic, geographic, political, and cultural influences on assigned region
Brasil
Central America
Caribbean
Central Europe
China
Follow instructions on page 106
This will be your final RESEARCH PAPER. Due on
Lilian y Dagoberto
Gricel y Oreste
Ninosca y Daikiel
Juan y Yeni
Omar y Belkys
Johnathan e Ileana
Humberto, Julio y Dyan
South America
Central America
Caribbean
Central Europe
Central Asia
Arab league
Andean Countries
Explore economic, geographic, political, and cultural influences on assigned region
Follow instructions on page 106
http://www.slideshare.net/catherinemwilson/lecture-11-political-economic-systems-