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MBA 713 - Chapter 03

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MBA 713 - Chapter 03

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MBA 713 - Chapter 03

  1. 1. Chapter 3 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 1 Legal, Technological, Accounting, and Political Environments
  2. 2. Learning Objectives • Describe the major legal systems that confront international business • Explain how domestic laws affect the ability of firms to conduct international business • List ways firms can resolve international business disputes Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 2
  3. 3. Learning Objectives • Learn how the technological environment of the host country affects international business • Identify the factors that influence national accounting systems • Explain how firms can guard against political risk Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 3
  4. 4. The Legal Environment Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 4
  5. 5. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 5 Differences in Legal Systems • Common Law • Civil Law • Religious Law • Bureaucratic Law
  6. 6. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 6 Summary of Discussion
  7. 7. How Domestic Laws Affect the Ability of Firms to Conduct International Business Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 7
  8. 8. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 8 Domestically Oriented Laws Domestic Effects International Effects
  9. 9. • Sanctions • Embargos • Extraterritoriality Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 9 Laws Directly Affecting International Business
  10. 10. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 10 Laws Directed Against Foreign Firms • Nationalization • Expropriation • Confiscation • Privatization • Repatriation
  11. 11. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 11 The Impacts of MNCs on Host Countries Political Economic Cultural
  12. 12. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 12 Summary of Discussion
  13. 13. Dispute Resolution in International Business Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 13
  14. 14. Which country’s law applies? Where should the issue be resolved? How will the conflict be resolved? How will the settlement be enforced? Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 14 Four Essential Questions
  15. 15. Business Contracts Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 15 Forum Shopping Principle of Comity Arbitration
  16. 16. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 16 Summary of Discussion
  17. 17. The Technological Environment Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 17
  18. 18. Changing or Shaping Technological Environments Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 18 Investments Technology Transfer Infrastructure Human Capital Foreign Direct Investment Business Requirements
  19. 19. Intellectual Property Rights Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 19 • Laws • Patents • Trademarks • Brand Names
  20. 20. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 20 Summary of Discussion
  21. 21. The Accounting Environment Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 21
  22. 22. The Roots of National Differences Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 22 Legal Cultural Political Economic Accounting
  23. 23. Differences in Accounting Practices Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 23 Determining Values for Assets Determining Values for Inventory Dealing with Tax Authorities Using Accounting Reserves
  24. 24. Other Differences Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 24 •Financial Leases •R&D Expenses •Goodwill
  25. 25. Capital Market Impact Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 25 •Performance •Investments •Loans
  26. 26. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 26 Summary of Discussion
  27. 27. The Political Environment Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 27
  28. 28. Political Risk Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 28 • Ownership Risk • Operating Risk • Transfer Risk
  29. 29. Risk Categories Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 29
  30. 30. • Democracy or dictatorship? • Free market or government control? • Public or private sector customers? • Changes to government policy? • Stability of the existing government? Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 30 Assess Political Risk
  31. 31. Reducing Risks of Foreign Operations Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 31 Overseas Private Investment Corporation (OPIC) Multilateral Investment Guarantee Agency (MIGA)
  32. 32. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 32 Summary of Discussion
  33. 33. Chapter 3 Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 33 Legal, Technological, Accounting, and Political Environments
  34. 34. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall Chapter 3 - 34 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.

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