ppt

1. Political And
Legal
Environment
Presented By : -
Rohit Raina
0613-MBA-2013

2. INTRODUCTION
 Multinational Enterprises operate in different
countries with different political and legal
conditions.
 Analyse if the corporate policies will fit a
desirable political and legal environment.

3. POLITICAL ENVIRONMENT
It refers to:
• Public Institutions:
 Government.
 Government Agencies.
 Government owned Business.
• Non public Institutions:
 Interest Groups.

4. POLITICAL SYSTEM
 A political system integrates the parts of a society into a
viable functioning unit.
 Challenge: integration of people of diff. ethnic or
cultural backgrounds.
 It is influenced by forces within & outside the country.
– Internal Forces: Nature of population, size &
influence of corporations & governmental
bureaucracies, & the strength of the politicians.
– External Forces: International agreements,
NGO’s, Governmental organizations, etc.

5. POLITICAL SYSTEM
 Political process functions:
– Interest articulation.
– Interest aggregation (bringing together
different points of view)
– Policy making.
– Policy implementation and adjudication.

6. TYPES OF POLITICAL
SYSTEMS
 Democracy
 Totalitarianism
 Mixed
 Representative Republic

7. DEMOCRACY
 The people make the decisions
 Equal Rights
 Many Freedoms
 Representative Democracies
 Elect citizens to represent them

8. TOTALITARIANISM
 Limited rights and freedoms
 Government (one or few) makes decisions
 People have no right to interfere in the laws

9. MIXED
 Characteristics of both systems
 Almost all political systems are mixed

10. Layers of Political Influence
 First Layer: The Home Environment
 Second Layer: The Host Environment
 Third Layer: The Global Environment

11. LEGAL ENVIRONMENT
 Each nation develops and adapts a legal
system that fits its own economic, political and
social goals
 Two basic types of legal systems in global
community
 Common Law
 Code Law

12. Layers of the Legal
Environment
 The First Layer: The Home Environment
 The Second Layer: The Host Environment
 The Third Layer: The Global Environment

13. Settling International Disputes
 Despite trade agreements, there are still
problems and legal disputes among
companies and governments
 Three ways to settle differences:
 Negotiation
 Arbitration
 Litigation

14. THANK YOU.