Professional Documents
Culture Documents
Regulatory Environments
of Global Marketing
Chapter 5
The Political Environment
• Political Culture
• Nations-States and Sovereignty
• Political Risk
– Causes of Political Risk
– Expressions and Symptoms
• Taxes
• Seizure of Assets
Nations-States and
Sovereignty
• Sovereignty
– Two context
• A country’s stage of development
• The political and economic system in place in the country
• Economies of Individual Nations
– Industrialized
– Newly industrialized
– Developed
• Elements of market and nonmarket systems
– Political power
– Global phenomenon
• Privatization
– Ex. Mexico
Political Risk
• What is Political risk?
• Causes of Political Risk
– Tension between the residents’ and goals and conditions
– Countries and political risk
• VAT taxes
– Value-added tax
– Effect of VAT tax
• Corporate Taxation
– High level of political risk effect
Seizure of Assets
• Expropriation
– Confiscation
– Government
• Nationalization
• Creeping expropriation
– limitations
The Legal Environment
• International Law
– The rules and principles that nation-states consider binding
upon themselves
– Organizations Contributions