GMS 522
Page 1
GMS 522
Week 5
Chapter 5: The Political and Legal Environments
The Political and Legal Environments
Political and legal circumstances in the home country
Political and legal circumstances in the host country
Bilateral and multilateral agreements, treaties, and laws governing relations between host and
home countries
Sanctions and Embargos
Government actions that distort the free flow of trade goods, services, or ideas for decidedly
adversarial and political, rather than strictly economic purposes
Ex: Cuba
Export Controls
Many nations use export control systems, designed to deny or at least delay the acquisition of
strategically important goods and adversaries
Most make controls the exception, rather than the rule
Other nations consider exports to be an extension of foreign policy
Import Controls
In many nations, all import or the imports of particular products through mechanisms including:
Tariffs, Voluntary Restraint Agreements and Quota Systems
Regulation
There are several major areas in which nations attempt to govern the global marketing activities of firms
which include:
Boycotts: firms refuse to do business with someone
Antitrust measures: wherein firms are seen as restricting competition
Corruption: occurs when a firm obtains contracts or bribes rather than through competitive
bidding and performance
Behaviour and Ethics
Increasingly, public concerns are raised about such issues as global warming, pollution and
moral behaviour
These issues do not represent the same level of importance in every country
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Document Summary

Political and legal circumstances in the home country. Political and legal circumstances in the host country. Bilateral and multilateral agreements, treaties, and laws governing relations between host and home countries. Government actions that distort the free flow of trade goods, services, or ideas for decidedly adversarial and political, rather than strictly economic purposes. Many nations use export control systems, designed to deny or at least delay the acquisition of strategically important goods and adversaries. Most make controls the exception, rather than the rule. Other nations consider exports to be an extension of foreign policy. In many nations, all import or the imports of particular products through mechanisms including: There are several major areas in which nations attempt to govern the global marketing activities of firms which include: Boycotts: firms refuse to do business with someone. Antitrust measures: wherein firms are seen as restricting competition. Corruption: occurs when a firm obtains contracts or bribes rather than through competitive bidding and performance.

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