The international political and

8/7/2019 The international political and

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THE POLITICAL ANDTHE POLITICAL AND

LEGAL ENVIRONMENTLEGAL ENVIRONMENTFACING BUSINESSFACING BUSINESS



Case: St andards c an b e Case: St andards c an b e P ro t e cti on i s t P ro t e cti on i s t

Ec onom ic Ec onom ic U n ityUn ity i n i n Eu ropeEu rope aa n ight maren ight mare for for UU..SSEx por t ers Ex por t ers ..

St andards S t andards work i n gwork i n g as as t radet rade b arr i ers b arr i ers

Di spara t eDi spara t e Na ti onalNa ti onal S t andards S t andards



I I -- INTRODU C TION INTRODU C TION

Po liticalPo litical and and Le ga lLe ga l Fa ct orsFa ct ors o ften o ften pl aypl ay aa cr itic a lcr itic a l ro lero le in in inte rna ti ona lin te rna ti ona l bus in e ssbus in e ss m ar keti ngm ar keti ng a ctivitie sa ctivitie s..

U n e x pected U n e x pected Po litic a lPo litic a l oror L e ga lLe ga l I n flu e n ce sI n flu e n ce s andand fa ilur efa ilur e t ot oan ticip a tean ticip a te t h e s et h e s e eve n t seve n t s..

I tI t i sis us ef u lus ef u l t ot o und e rs t andund e rs t and t h et h e c o mple x itie sco mple x itie s o fo f t h et h e hos thos tcoun t rycoun t ry le ga lle ga l sys temsys tem



II II -- H OME C OUNTRY P OLITI CAL HOME C OUNTRY P OLITI CAL AND LEG AL ENVIRONMENT AND LEG AL ENVIRONMENT

N oN o m anag e rm anag e r cancan a ff orda ff ord t ot o ignor eignor e t h et h e p o licie sp o licie s andandre gu la ti onsre gu la ti ons o fo f t h et h e c oun t rycoun t ry fro mfro m w h ichw h ich h eh e oror sh esh econdu ct scondu ct s in te rna ti ona lin te rna ti ona l m ar keti ngm ar keti ng t ransa cti onst ransa cti ons. .

E xE x:: labourlabour la w s,la w s, e n vi ron me n t a le n vi ron me n t a l la w sla w s..

So meSo me le ga lle ga l andand r e gu la t oryre gu la t ory me asur e sme asur e s ar ear e a ime da ime d a ta tin te rna ti ona lin te rna ti ona l a ctivitie s,a ctivitie s, d e s ign e dd e s ign e d t ot o h elph elp do me s ticdo me s ticco mp an ie sco mp an ie s..

E xE x:: U U ..SS.. go ve rn me n tgo ve rn me n t p re ssur ingp re ssur ing C h inaC h ina t ot o e s t ab lishe s t ab lishsa fe guardssa fe guards forfor I n tellect ua lI n tellect ua l P ro pe r t yP ro pe r t y R igh t sR igh t s

AA P o licie sP o licie s && R e gu la ti onsR e gu la ti ons



Vio la ti onsVio la ti ons o fo f in tellect ua lin tellect ua l p ro pe r t yp ro pe r t y r igh t sr igh t s o cc uro cc urany w h e reany w h e re ..

G rayG ray M ark etM ark et :: goodsgoods e n te re n te r m ark et sm ark et s inin w aysw ays no tno t d e s ire dd e s ire dbyby t h et h e m anu fa ct ur e rm anu fa ct ur e r..

G o ve rn me n t sG o ve rn me n t s m aym ay w ork w ork t ot o r e du cere du ce t rad et rad e barr ie rsbarr ie rs oror t ot oin c re as ein c re as e oror t ot o in c re as ein c re as e t rad et rad e o pp or t un itie so pp or t un itie s..

BB E m bargo e sE m bargo e s andand S an cti onsS an cti onsG o ve rn me n t a lG o ve rn me n t a l a cti onsa cti ons t ha tt ha t d is t or td is t or t t h et h e f reefree fl o wflo w o fo f t rad et rad einin goodsgoods andand s e rvice ss e rvice s..

E cono micE cono mic S an cti onsS an cti ons cancan for cefor ce c oun t r ie scoun t r ie s t ot o b e ha veb e ha vepe a cef u llype a cef u lly inin in te rna ti ona lin te rna ti ona l co mm un it yco mm un it y..

Un ila te ra lUn ila te ra l san cti onssan cti ons m aym ay no tno t w ork w ork andand go ve rn me n t sgo ve rn me n t so fte no fte n cons id e rcons id e r t h emt h em asas b ei ngb ei ng freefree o fo f cos tcos t ..





E xp or t E xp or t L ic enseL ic ense

Th eTh e i n t ern ati on a li n t ern ati on a l m a rke ti n gm a rke ti n g re p er cu ss i ons re p er cu ss i ons ofof e xp or t e xp or t c on t rols c on t rols a rea re i m p or ta n t i m p or ta n t.. O neOne c o u n t r y s c o u n t r y s f i rms fi rms a rea re p lac e dp lac e dat at aa c om p e titi vec om p e titi ve di s ad va n tag edi s ad va n tag e w ithw ith fi rms fi rms i n i n o th er o th er c o u n t r i es c o u n t r i es w h osew h ose c on t rolc on t rol s ys t ems s ys t ems a rea re less less e xt ens i vee xt ens i ve ..

A C ha n g e d E nv i ronmen t for E xp or t Con t rols A C ha n g e d E nv i ronmen t for E xp or t Con t rols

a)a) Coll ap seColl ap se ofof th eth e I ron I ron C u r tai n ,C u r tai n , Di s app e a r a n c eDi s app e a r a n c e ofof th eth eSov i e t Sov i e t U n i on Un i on a n da n d th eth e E a s t ern E a s t ern Blo c Blo c..

b)b) T o dayTo day th eth e p r i n cipa lp r i n cipa l fo cu s fo cu s ofof e xp or t e xp or t c on t rols c on t rols m u s t m u s t res t res t on on th eth e Thi r dThi r d W orl dWorl d.. C h em ica lC h em ica l we ap ons we ap ons a n da n d n uc le a r n uc le a r t e ch nolo gyt e ch nolo gy

c)c) Loos i n gLoos i n g ofof m utua lm utua l b on d s b on d s a mon ga mon g a lli e da lli e d n ati ons n ati ons

d)d) I n c re a se dI n c re a se d a vai labi litya vai labi lity ofof highhigh t e ch nolo gyt e ch nolo gy p ro duct s p ro duct s .. Th eTh eb ro adb ro ad a vai labi litya vai labi lity m a kes m a kes a n ya n y d en ia ld en ia l ofof s uchs uch p ro duct s p ro duct s moremore di ff icu lt di ff icu lt t ot o enfor c eenfor c e ..



D D EX P ORT EX P ORT C ONTROLC ONTROL P RO B LEM S P RO B LEM S AND AND C ONFLI C T S C ONFLI C T S

a)a) C on ti nu ingC on ti nu ing d e ba ted e ba te abou tabou t w ha tw ha t c ons tit u te scons tit u te s milit arymilit ary

us eus e p rodu ct s,p rodu ct s, civili ancivili an us eus e p rodu ct s,p rodu ct s, andand dua ldua l us eus ep rodu ct sp rodu ct s

b)b) T oT o subj ectsubj ect on lyon ly t h et h e e xp or te xp or t o fo f p hys ica lp hys ica l goodsgoods t ot osur veill an cesur veill an ce i sis insu fficie n tinsu fficie n t .. T h eT h e t rans fe rt rans fe r o fo f kno wkno w--ho who wandand tec hno logytec hno logy isis o fo f eq ua leq ua l imp or t an ceimp or t an ce .. B oo k s,B oo k s,pe r iod ic a ls,pe r iod ic a ls, so ftw ar eso ftw ar e .. I n te rn etI n te rn et ..

E xE x:: e n c ry pti one n c ry pti on tec hno logytec hno logy

C on flict sC on flict s inin t h et h e e x p or te x p or t c on t ro lcon t ro l fiel dfiel d ar ear e un likel yun likel y t ot o

d ec re as e ,d ec re as e , bu tbu t ra t h e rra t h e r willwill m u ltipl ym u ltipl y inin t h et h e f u t ur efu t ur e



E E IM P ORT IM P ORT C ONTROL S C ONTROL S

T ru e o f coun t r ie s t ha t su ffe r fro m m ajor ba lan ceT ru e o f coun t r ie s t ha t su ffe r fro m m ajor ba lan ce--o fo f--

t rad e d eficit st rad e d eficit sQuo t a S ys tem Quo t a S ys tem

P o lic ym ak e rs fa ce w it h s eve ra l prob lem sP o lic ym ak e rs fa ce w it h s eve ra l prob lem s::

a)a) su chsu ch con t ro lscon t ro ls e xa cte xa ct aa hug ehug e pr icepr ice f ro mfro m do me s ticdo me s ticconsu me rsconsu me rs

b)b) P ro tecte dP ro tecte d groups,groups, b ias e db ias e d aga ins taga ins t c onsu me rs,consu me rs,im pa ct sim pa ct s onon ov e ra llov e ra ll ec ono micec ono mic efficie n cyefficie n cy

c)c) Downs t re a mDowns t re a m c hang echang e i nin im por tim por t c o m pos iti onco m pos iti on



F F REGUL ATION OF INTERN ATION ALREGUL ATION OF INTERN ATION AL

B U S INE SS B EH AVIORB U S INE SS B EH AVIOR

H o meH o me c oun t r ie scoun t r ie s m aym ay impleme n timpleme n t s peci a ls peci a l la w sla w s andandre gu la ti onsre gu la ti ons t ot o e nsur ee nsur e t ha tt ha t t h et h e i n te rna ti ona lin te rna ti ona l bus in e ssbus in e ssb e ha viorb e ha vior o fo f t h ei rt h ei r firm sfirm s isis condu cte dcondu cte d wit h inwit h in t h et h e le ga l,le ga l,m ora l,m ora l, andand et h ic a let h ic a l boundar ie sboundar ie s cons id e re dcons id e re d a pp ro p r ia tea pp ro p r ia te ..

T h eT h e d efi n iti ond efi n iti on o fo f a pp ro p r ia te n e ssa pp ro p r ia te n e ss m aym ay varyvary fro mfro mcoun t rycoun t ry t ot o coun t rycoun t ry

a)a) Seve ra lSeve ra l m ajorm ajor ar e asar e as inin w h ichw h ich na ti onsna ti ons a ttempta ttempt t ot ogo ve rngo ve rn t h et h e i n te rna ti ona lin te rna ti ona l m ar keti ngm ar keti ng a ctivitie sa ctivitie s o fo f it sit sfirm sfirm s ar ear e boy co tt sboy co tt s

AnyAny boy co ttboy co tt req u e s t sreq u e s t s m us tm us t b eb e no tifie dno tifie d

b)b) An tit rus tAn tit rus t La w sLa w s:: Jus ticeJus tice Dep ar tme n tDep ar tme n t w a tc h e sw a tc h e s cl os el ycl os el yfor ei gnfor ei gn a cq u is iti ons,a cq u is iti ons, jo in tjo in t--ve n t ur e s,ve n t ur e s,

c)c) C orru pti onC orru pti on..F

or ei gnF

or ei gn C orru ptC orru pt Pra ctice sPra ctice s ActAct o fo f 19771977 ..



d)d) G enera l S t an d ar d s of E thic s G enera l S t an d ar d s of E thic s : child l a b ou r , cutti n g: child l a b ou r , cutti n gd own th e Braz ili an ra i n f ores t, e xpor t o f U. S . t o b a cc o ,d own th e Braz ili an ra i n f ores t, e xpor t o f U. S . t o b a cc o ,sa f e ty s t an d ar d s f or workers .sa f e ty s t an d ar d s f or workers .

G G HO S T C O UNTRY P OLITI CALHO S T C O UNTRY P OLITI CAL

AND LEG AL ENVIRONMENT AND LEG AL ENVIRONMENT

-- Po litic a l Po litic a l Acti on Acti on an dan d R i skR i sk :: c ons i s t en cyc ons i s t en cy an dan d s t a bilitys t a bility

-- O wnersh i pO wnersh i p R i skR i sk

-- O pera ti n gO pera ti n g R i sks R i sks

-- E xpropr i a ti on E xpropr i a ti on

-- Con fi s c a ti on Con fi s c a ti on;; d oes d oes no t no t i nvo l vei nvo l ve c ompensa ti on c ompensa ti on

-- Pr ic ePr ic e Con t ro l s Con t ro l s T heT he O verseas O verseas Pr i va t ePr i va t e I nves t men t I nves t men t Corpora ti on Corpora ti on ( O P I C )( O P I C )c an c an c over c over t hreet hree ty pes ty pes o f o f r i skr i sk :: C u rren cyC u rren cy i n c onver tibilityi n c onver tibilityi ns u ran c e ,i ns u ran c e , e xpropr i a ti on e xpropr i a ti on i ns u ran c e ,i ns u ran c e , an dan d po litic a l po litic a l v i o l en c ev i o l en c e i ns u ran c ei ns u ran c e ..



H H LEG AL DIFFEREN C E S LEG AL DIFFEREN C E S

Th eTh e nu m b e rnu m b e r o fo f la w ye rsla w ye rs inin t h et h e UU..S S .. isis asas m u chm u ch asas 4848time stime s h igh e rh igh e r t hant han inin Ja p anJa p an..

C o mm onC o mm on La wLa w bas e sbas e s onon t rad iti on,t rad iti on, d epe nd ingd epe nd ing m or em or e ononp rece d e n tp rece d e n t andand cus t o m scus t o m s

C od eC od e La wLa w :: bas e dbas e d onon aa co mp re h e ns iveco mp re h e ns ive setset o fo f w r itte nw r itte ns t a t u te ss t a t u te s..



I I THE INTERN ATION AL ENVIRONMENT THE INTERN ATION AL ENVIRONMENT I n t erna ti ona l I n t erna ti ona l Po litic s Po litic s

H e l ms H e l ms--Bu r t on Bu r t on A ct Act:: g ran t e dg ran t e d i n di v idu a l s i n di v idu a l s th eth e r ight r ight t ot o s u es u ei n i n UU..SS.. c o u r t s c o u r t s s ub s idi ar i es s ub s idi ar i es ofof th oseth ose fore ig n fore ig n f i rms fi rms w hichw hichh a dh a d i nves t e di nves t e d i n i n proper ti es proper ti es c onf i s c a t e dc onf i s c a t e d byby th eth e Cub an Cub an g overnmen t g overnmen t.. I n I n a dditi on ,a dditi on , mana g ers mana g ers ofof th eseth ese f i rms fi rms wereweret ot o b eb e d en i e dd en i e d en t r yen t r y i n t oi n t o th eth e UU..SS..

I n t erna ti ona l I n t erna ti ona l LawLaw

W TO ,W TO , I n t erna ti ona l I n t erna ti ona l Conven ti on Conven ti on for for th eth e Pro t e cti on Pro t e cti on ofofI n du s t r i a l I n du s t r i a l Proper tyProper ty an dan d th eth e M a d r idM a d r id Arran g emen t Arran g emen t for for I n t erna ti ona l I n t erna ti ona l R e gi s t ra ti on R e gi s t ra ti on ofof T ra d emarks T ra d emarks ..

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The international political and