Study sets, textbooks, questions
Upgrade to remove ads
MKT 710 - Darrat - Module 4
Ch 6 and 7
Terms in this set (41)
Sovereignty refers to both
1. The powers exercised by a state in relation to other countries
- Independent and free from external control
2. The supreme powers exercised over its own members
What are some examples of specific powers of a sovereign state?
- Sets requirements for citizenship¡Defines geographical boundaries
- Controls trade and the movement of people and goods across its
- Can enter into agreements with other nations
- Selects political, economical, and social systems
Also, its citizens are subject to the state's laws beyond its borders
Nations often, but hesitantly, relinquish their rights in order to coexist with other nations. Examples?
- European Union
- NAFTA - North America Free Trade Agreement (now USMCA)
- WTO—World Trade Organization: Considered the biggest threat to national sovereignty
What is NAFTA (North American Free Trade Agreement)
Allows open trade between the US, Mexico, and Canada.
What is the European Union (EU)?
a free trade zone encompassing 27 European countries
What is the World Trade Organization (WTO)?
a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
Considered the biggest threat to national sovereignty
Radical shifts in government philosophy can occur when...
1. An opposing political party ascends to power
2. Pressure from nationalist and self-interest groups
3. Weakened economic conditions
4. Bias against foreign investment or conflicts b/t governments
3 fundamental forms of government:
- Rule by one (monarchy/dictatorship)
- Rule by few (aristocracy/oligarchy)
- Rule by many (democracy)
What form of government: rule by one
What form of government: rule by few
What form of government: rule by many
Nearly all nations have some form of democratic government with suffrage
(right to vote) for those over 18
Some nations that claim to be a democracy are ___
When two strong alternating parties exist, important to know each party's beliefs. Example?
U.S.—Republicans vs. Democrats
What is nationalism?
- Intense feeling of national pride and unity (Anti-foreign business bias)
Where is nationalism commonly found?
- newly formed countries after WWII
- Yet even found in prosperous countries—Japan
What is Targeted Fear/Animosity?
Animosity directed at a specific country.
Ex.: Toyota in the U.S. (1980s) - "fear of Japan" & U.S. and France
Trade disputes: Banana Wars
US tried to secure banana markets by interventions in central and south america using troops to preserve the connection.
What are political risks of global business
1. Confiscation, Expropriation, and Domestication
2. Economic Risks
3. Political Sanctions
4. Political and Social Activists and Nongovernmental Organizations
5. Violence, Terrorism, and War
6. Cyberterrorism and Cybercrime
The seizing of a company's assets without payment
The seizing of a company's assets with reimbursement. Investment is often nationalized.
What is Expropriation
Forced transfer of assets from a company to the government with compensation
Venezuela and Mexico's CEMEX is an example of...
The Venezuelan government plans to pay $600 million to Cemex SA B for assets that it seized from the Mexican cement giant in 2008, ending years of disputes between the two parties and improving Cemex's cash position as the company attempts to chip away at its hefty debt amid tepid global economic growth.
confiscation and expropriation are on the ....
A gradual transfer of foreign investments to national control and ownership
Coke in India is an example of
What do exchange controls stem from?
shortages of foreign exchange held by a country
Exchange controls problem
Getting profits out of country without loss of value
What are local content laws?
Portion of imported product must contain locally made parts
Ex. Milk in Thailand
What are Import Restrictions?
Importation of raw materials limited; forces company to purchase local raw materials
What are tax controls?
- Taxes levied on foreign businesses
- India and the soft drinks
What are price controls?
- Often on essential products
- Used during inflationary periods to help control maintain cost of living
What are labor problems?
- Examples: Layoffs forbidden, forced profit sharing, services provided
- France: Full employment expected
What are political sanctions?
- One or more countries boycotting another country
- All trade stopped or trade on specific product stopped
Are political sanctions effective?
Political and Social Activists and Nongovernmental Organizations
- Not government sanctioned
PepsiCo in Myanmar
Red Cross, Habitat for Humanity
What are the consequences of the US embargo of Cuba?
A relatively new Chinese Chery Q (red provisional plate), and one of the newest American cars you can find on the island, a 1957 Chevy (yellow citizen's plate), certainly with a refurbished engine. A variety of other European and Asian brands ply the streets of Havana, almost all recent models. No new American models are in sight.
Violence, Terrorism, and War political risks
- Businesses are targeted because less well defended and what they stand for
- 80% of terrorist attacks against the U.S. have been aimed at American businesses
- U.S.-issued travel warnings
- War may become obsolete
Cyberterrorism and Cybercrime
- Difficulty in determining whether inflicted by nation, terrorist, or hacker
- "I Love You" worm vs. Google in China
Sets found in the same folder
MKT 710 Ch. 3 and 4
MKT 710 - Darrat - Module 2
International Marketing exam 1 MKT 710 LSUS
MKT710 - Test 1 Study Guide
Other sets by this creator
MKT Test 3 Highlight Cards
ECON 705 - Module 7
MADM 701 - Module 7
ECON 706 - Module 6
Other Quizlet sets
BIO103 missed exam questions
Ch 1 Multiple Choice Excel
Exam 2 Chapter 7
World History to 1500 Midterm Review