Political Environment
The set of governmental institutions, political parties, and organizations that are the expression of the people in the nations of the world.
Sovereignty
a country's supreme and independent political authority
Political Risk
the possibility of a change in a country's political environment or government policy that would adversely affect a company's ability to operate effectively and profitably.
Expropriation
refers to governmental action to dispossess a foreign company or investor.
confiscation
a government's taking of a privately owned business or personal property without a proper public purpose or an award of just compensation
Nationalization
occurs when the government takes control of some or all to the enterprises in a particular industry.
international law
may be defined as the rules and principles that nation-states consider binding upon themselves.
private international law
is the body of law that applies to disputes arising from commercial transactions between companies of different nations.
civil-law country
one in which the legal system reflects the structural concepts and principles of the Roman Empire in the sixth century
common law country
many disputes are decided by reliance on the authority of past judicial decisions
Islamic Law
A system of laws, operative in some Arab countries, based on the Muslim religion and especially the holy book of Islam, the Koran.
jurisdiction
pertains to global marketing insofar as it concerns a court's authority to rule on particular types of issues arising outside of a nation's borders or to exercise power over individuals or entities from different countries
patent
is a formal legal document that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time.
trademark
is defined as a distinctive mark, motto, device, or emblem that a manufacturer affixes to a particular product or package to distinguish it from goods produced by other manufacturers
copyright
establishes ownership of a written, recorded, performed, or filmed creative work.
counterfeiting
unauthorized copying and production of a product
Madrid Protocol
A system of trademark protection that allows intellectual property registration in multiple countries with a single application and fee.
cartel
a group of individual companies that collectively set price, control output, or take other actions to maximize profits
Licensing
a contractual agreement in which a licensor allows a licensee to use patents, trademarks, trade secrets, technology, and other intangible assets in return for royalty payments or other forms of compensation
trade secrets
are confidential information or knowledge that has commercial value and is not in the public domain and for which steps have been taken to keep it secret
bribery
is the corrupt business practice of demanding or offering some type of consideration - typically a cash payment - when negotiating a cross-border deal
Foreign Corrupt Practices Act (FCPA)
legislation passed to prevent companies from bribing foreign officials to obtain business; also requires all publicly owned corporations maintain a system of internal accounting controls
Arbitration
is a negotiation process between tow or more parties to settle a dispute outside of the court system
regulatory environment
Governmental and nongovernmental agencies and organizations that enforce laws or establish guidelines for conducting business.