GMS 522 Lecture Notes - Lecture 5: World Trade Organization, Meddle
6 May 2018
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GMS522 LECTURE NOTES- Political and legal
Why do we need to look at what the home country does? Home country government is signatories to
international agreements- ex UN WTO etc. They may not be acting or doing things to penalize home firm
but might become collateral damage. Home country government can make things hard for businesses
by deciding on how you should behave in a foreign country.
Disrupting trade to punish target country/ pollical reason- SANCTION EMBARGOS
The UN security council have 5 permanent members with VETO power- US, Russia, France, China and
UK. And 10 rotating members.
Most sanctions are imposed by the UN and sometimes by the OASS. Sanctions are sometimes imposed
unilaterally (one country) but those tend not to work as the country can go to other country to fulfil
their purpose. Multilateral (many countries) are more likely to work. However, getting all countries to
agree is easier said than done due to historic, economic, cultural relations. Co-operation is important.
Why does China stop sanctions on Sudan? Sudan is a large oil supplier. They may cut off supply of oil to
china which will affect their economy. Neighboring countries of Sudan also supply oil to China. China
does’t wat to eddle ad rui relatios.
P5- permanent 5 of the security council.
Historical tensions between countries tend to spill over into the world of business.
CPI measures the demand for corruption and the BPI measures the supply of corruption (bribe)
find more resources at oneclass.com
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Document Summary
Home country government is signatories to international agreements- ex un wto etc. They may not be acting or doing things to penalize home firm but might become collateral damage. Home country government can make things hard for businesses by deciding on how you should behave in a foreign country. Disrupting trade to punish target country/ pollical reason- sanction embargos. The un security council have 5 permanent members with veto power- us, russia, france, china and. Most sanctions are imposed by the un and sometimes by the oass. Sanctions are sometimes imposed unilaterally (one country) but those tend not to work as the country can go to other country to fulfil their purpose. Multilateral (many countries) are more likely to work. However, getting all countries to agree is easier said than done due to historic, economic, cultural relations. They may cut off supply of oil to china which will affect their economy. Neighboring countries of sudan also supply oil to china.
