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  • 1. Culture Environment Culture is an integrated system of learned behavior patterns that are characteristic of the members of any given society.
  • 2. Elements of Social and Culture Language (verbal and nonverbal) Religion Values and Attitudes Manners and Customs Material Elements Aesthetics Education Social Institutions
  • 3. Political Environment
    • The Home-Country Perspective
    • Host Country Political and Legal Environment
  • 4. The Home Country Perspective
    • Major areas of governmental activity that are of concern to the international business manager:
      • Embargoes and Sanctions
      • Export Controls
      • Regulation of International
      • Business Behavior
  • 5. Host Country
    • Political Action and Risk
      • Varies widely from country to country
    • Economic Risk
      • Less dangerous, but more common
  • 6. Three Types of Political Risk
    • Ownership Risk
      • Exposes property and life
    • Operating Risk
      • Interference with the ongoing operations of a firm
    • Transfer Risk
      • Limitations on the outflow of funds
  • 7. Political Risk May Involve
    • Confiscation
      • The government takeover of a firm without compensation to the owners.
    • Expropriation
      • A form of government takeover in which the firm’s owners are compensated.
    • Domestication
      • The government demands transfer of ownership and management responsibility.
  • 8. Economic Environment
    • Economic Size
    • Economic Systems
    • Key Macroeconomic Indicators
    • Economies in Transition