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Copyright?2020McGraw-HillEducation.Allrightsreserved.
NoreproductionordistributionwithoutthepriorwrittenonsentofMcGraw-HillEducation.
InternationalMarketing,18e(Cateora)
Chapter6ThePoliticalEnvironment:ACriticalConcern
1)Sovereigntyisexclusivetothesupremepowersexercisedbyanationoveritsownmembers.
2)Sovereigntymaybethreatenedbyforeigninvestment.
3)AdherencetotheWorldTradeOrganization(WTO)doesnotresultinthelossofnationalsovereignty.
4)Foreignbusinessesnolongerneedtobeconcernedaboutthestabilityorinstabilityofprevailinggovernmentpolicies.
5)Pressurefromnationalistandself-interestgroupsaffectthestabilityofagovernment.
6)SaudiArabiabeganpermittingwomentovotein2015.
7)Nationalismsupportsforeignbusinessbecauseitimproveslocaleconomies.
8)Nationalisticfeelingsingeneralbearnorelationtothedomesticeconomy.
9)Propertymaylegallybeseizedbythegovernmentwithorwithoutcompensation.
10)Themostseverepoliticalriskofglobalbusinessisthegovernmentactionofdomestication.
11)Theultimategoalofdomesticationistorequirecompaniestoproducemoreproductstoexportthanwasthecasebeforedomestication.
12)Throughexpropriationandnationalization,nationalizedbusinesseshavebecomemoreefficient,technologicallystrong,andcompetitiveinworldmarkets.
13)BarringLatinAmerica,therisksofconfiscationandexpropriationhavedecreasedoverthelasttwodecades.
14)Manycountrieshavedomesticationasaconditionforinvestment.
15)Pricecontrolsareonlytargetedatnonessentialproducts.
16)Politicalsanctionsareusuallyanunsuccessfulmeansofachievingthegoalofforcingacountrytoacceptthedemandsoftheboycottingcountry.
17)Politicalandsocialactivistsgenerallyhavenoimpactonthenormalflowoftrade.
18)Nongovernmentalorganizationscanaffectthepolicydecisionsmadebygovernmentsthroughlobby
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