英文 国际市场营销 chapter 06.pptVIP

The political environment of countries is a critical concern for the international marketer International law recognizes the sovereign right of a nation to allow or deny foreign firms to conduct The Political Environment: A Critical Concern Chapter 6 Chapter Learning Objectives 1. What does the sovereignty of nations mean and how can it affect the stability of government policies, political parties and nationalism. 2. The political risks of global business and the factors that affect stability 3. The importance of the political system to international marketing and its effect on foreign investments 4. Assessing and reducing the effect of political vulnerability Introduction Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members A sovereign state is independent and free from all external control; enjoys full legal equality with other states; and governs its own territory Stability of Government Policies Q: Radical shifts in government philosophy can occur when: An opposing political party ascends to power Pressure from nationalist and self-interest groups Weakened economic conditions. Bias against foreign investment or conflicts between governments Stability of Government Policies The stability or instability of prevailing government policies is a major concern of foreign businesses A change in government, whether by election or coup, does not always mean a change in the level of political risk The ideal political climate for a multinational firm to conduct business is a stable, friendly government Be knowledgeable about the philosophies of all major political parties and their attitudes towards trade Conversely, radical changes in policies toward foreign business can occur in the most stable governments as well Nationalism Nationalism refers to feelings of national pride and unity Feelings of nationalism are manifested by: Call to “buy our country’s products only,” e.g.