【文章內(nèi)容簡介】 violent actions against a foreign pany: public relations and advertising campaigns, boycotts, pickets, demonstrations, disruptions, damage, etc. ? Both in home country and in host country Violence and Terrorism ? Planned and unplanned anizations and individuals Political Risks: Assessment and Evaluation ? No absolute guidelines exist ? Practical approach is to find previously stated political risks and how they can affect a pany ? Also can assess whether the pany may affect politically sensitive products and issues, related to environment, health, national security, highly sensitive and visible Sources of Assessment and Evaluation Addressing Political Risks Through International Risk Management May include: ? Economic contributions ? Philanthropy ? Joint ventures ? Involving outside and local investors ? Licensing ? Planned domestication ? Political payoffs Today I have learned 1. . 2. . 3. . 4. . 5. . IM5 Legal Factors International Marketing: NOTES HAU Fall2023 Professor Andrei Ribalkin Based on CGB and IB Outline ? Legal Systems ? Law makers and enforcers ? Issues in International Business ? International dispute resolution 259 Legal Factors ? Include laws and rules that regulate behavior and processes through which laws are enforced grievances are redressed ? Businesses must observe –home country laws –host country laws –international Laws and Treaties Legal systems Three main types of legal systems – in use around the world: ? mon law ? civil law ? theocratic law 260 Common Law ? Based on tradition and precedent (previous decisions) ? Used in most of the Englishspeaking countries and former parts of the British Empire: England, USA, Australia, Kenya and others Civil Law ? Based on code laws (written rules) ? Used in France, Germany, Russia, Italy, Poland and many other countries Theocratic Law ? Based on religious beliefs and interpretations of religious books ? Islamic Law ( Shari’ah) based on Koran ? Used in Islamic countries such as Iran Legal System in Canada ? Includes both mon law practiced in most of the provinces and territories, and civil law practiced in the province of Quebec. Law Makers and Enforcers Laws ? Made by different levels of government in different countries ? Enforced mostly by governments and sometime by businesses and individuals Important Considerations for International Marketers ? Consistency (same principles applied in dealing with same issues) ? Predictability (what is appropriate) 267 Issues in International Business ? International business disputes ? Contract law ? Property rights ? Marketing laws ? Protection of intellectual property ? Product safety and liability ? Environment protection International Business Disputes ? No official judicial body exists to deal with legal mercial problems between citizens of different countries International Dispute Resolution through ? Conciliation/Mediation ? Arbitration ? Litigation Conciliation/Mediation ? A Nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences ? Conciliation sessions are private and confidential ? Parties can use the help of official anization, or find a mediator themselves ? The first formal step in settling the dispute Arbitration ? Formal process with a binding decision ? Third party establishes procedures and rules to follow ? In most countries enforceable under the law Litigation ? The last resort, suggested only if all other methods fail ? Many disadvantages: – Long time – High cost – Public disclosure of confidential information – Possibility of poor image – Lost relationship – Difficulties in applying court orders and others 273 Contract law ? Contract law is the body of law that enforces a contract – specifies conditions under which an exchange is to occur – details rights and obligations of parties ? Differences based on legal tradition – mon law system – civil law system – theocratic law – bureaucratic law 274 Property rights ? A bundle of legal rights over the use to which a resource is put and over the use made of any ine from that resource ? Property rights can be violated through – private action – public action and corruption Marketing Laws ? Exist in all countries ? Regulate products, prices, promotion and distribution ? Different in different countries Legal Trend Increased attention to Marketing Laws and Regulations especially to: ? Product labelling, advertising and sales promotion and distribution ? Protection of intellectual property (IP) ? Product safety and liability ? Environment protection 277 Protection of Intellectual Property (IP) ? Intellectual property refers to property that is the product of intellectual activity – Patent: inventors’ exclusive rights to manufacture, use, sale of an invention – Copyright: same for authors, posers, artists, publishers – Trademarks: unique designs and names, often officially registered IP Laws Depend on a legal system According to mon law in Canada ownership of IP is established by prior use or registration In many civillaw countries ownership is established by registration rather than by prior use 279 Product Safety and Liability ? Product safety laws set safety standards for products and manufacturing processes ? Product liability laws hold the firm and its officers responsible for product safety standards ? Criminal laws/ civil liability laws – Least extensive in lesser developed countries – Raise important ethical issues for firms doing business abroad Environmental Protection Laws address en