SUMMARY FOR CHAPTER 5

In chapter two, I have learned that the collection of governmental bodies, political
parties, and other organisations that represent the views of the people in the various countries
that make up the world is known as the political environment of global marketing. Anyone
involved in international marketing in particular has to have a general awareness of the
significance of sovereignty to national governments. Political risk assessment is essential since
the political climate differs from nation to nation. Additionally, it's critical to comprehend a
specific government's activities involving taxes and asset confiscation. The latter have
historically taken the forms of nationalisation, seizure, and expropriation.
Besides that, the legal environment is made up of laws, courts, lawyers, and accepted
legal procedures. The laws and principles that nation-states deem to be obligatory on
themselves collectively make up international law. The legal systems of the nations of the world
can be broadly divided into common law and civil-law systems. Most other nations follow civil
law, save for the United States, Canada, and other former British colonies. In the Middle East,
Islamic law is the dominant third system. The three main legal concerns are licencing, antitrust,
and jurisdiction. Additionally, bribery is widespread around the world; as a result, American
businesses that conduct business overseas must comply with the Foreign Corrupt Practises Act
(FCPA). Another crucial legal concern is the protection of intellectual property. A significant
issue in international marketing is counterfeiting; it frequently includes a company's copyright,
patent, or trademark being violated. Companies have two options when it comes to legal
disputes: they either go to court or use arbitration.
Agencies, both governmental and non-profit, that uphold the law or establish standards
for conducting business make up the regulatory environment. Numerous international or
regional economic organisations, like the EU in Europe, which passes regulations affecting
member nations, might have an impact on global marketing efforts. Global marketing
initiatives will be significantly impacted by the WTO in the years to come.
Lastly, despite the complexity of all three environments which is political, legal, and
regulatory smart marketers foresee potential conflicts, misunderstandings, or blatant legal
violations and take precautions to prevent them.