ARBUS301 Lecture Notes - Lecture 9: Country Risk, Totalitarianism, Equatoria
24 Dec 2015
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Lecture 9 government, political and social factors. Exposure to potential loss or adverse effects on company operations and profitability caused by developments in a country"s political and/or legal environments: also known as political risk". Each country has unique political and legal systems that often pose challenges for company performance. Political system: a set of formal institutions that constitute a government. It includes legislative bodies, political parties, lobbying groups, and trade unions. The system also defines how these groups interact with each other: three major types of political systems: These categories are not mutually exclusive: legal system: a system for interpreting and enforcing laws. The laws, regulations, and rules establish norms for conduct. It incorporates institutions and procedures for ensuring order and resolving disputes in commercial activities, as well as protecting intellectual property and taxing economic output. Ensure order in commercial activities: resolve disputes.
