Global Marketing 5
-
Upload
annabrians -
Category
Documents
-
view
216 -
download
0
Transcript of Global Marketing 5
-
7/29/2019 Global Marketing 5
1/8
Legal, andegu a oryEnvironments
Global MarketingChapter 5
1
The global marketer must comply witheach nations laws and regulations withres ect to the cross-border movement ofservices, people, money, and know-how
change frequently or are ambiguous andcan hamper the companys activities
2011 Pearson Education, Inc.
5-2
Made up of governmental institutions,
,and people use to wield power
importance of the government and legal
Issues for foreign investors include the ,
political risk, taxes, equity dilution, andex ro riation
2011 Pearson Education, Inc.
5-3
-
the independence of every other sovereign
state and the courts in one countr will not
sit in judgment on the acts of government
.
2011 Pearson Education, Inc.
5-4
-
7/29/2019 Global Marketing 5
2/8
Risk of change in political
government policy thatwould adversel affect acompanys ability tooperate effectively andpro a y
When perceived political,have a difficult timeattracting foreign direct
2011 Pearson Education, Inc.
5-5investment
Some examples of political risk include:
Social unrest
Politicall -motivated violence
Transparency
Social conditions (population density and wealthdistribution)
Corruption, nepotism r me
Labor costs
2011 Pearson Education, Inc.
5-6
High taxation can lead to black marketgrowt an cross- or er s opp ng
Cor orate taxation
Companies attempt to limit tax liability by
2011 Pearson Education, Inc.
5-7
Expropriation governmental action
to dispossess a foreign company orinvestor
Compensation should be provided in
manner
compensation is provided
2011 Pearson Education, Inc.
5-8
-
7/29/2019 Global Marketing 5
3/8
Nationalization a government takescontrol of some or all of the enterprisesin an entire industr
Acceptable according to international
satisfies public purpose includes compensation
2011 Pearson Education, Inc.
5-9
Creeping expropriation limits economic
May include: m s on repa r a on o pro s, v en s, or roya es
Technical assistance fees
Quotas for hiring local nationals
Discriminatory tariff and nontariff barriers
Discriminator laws on atents and trademarks
2011 Pearson Education, Inc.
5-10
The rules and principles that nation-
states consider binding amongthemselves
Disputes between nations are issues of
World Court or International Court of
Justice (ICJ) Judicial arm of the United Nations
2011 Pearson Education, Inc.
5-11
.
The Napoleonic Code of
rew on eRoman legal systeman s e as s orcontinental Europeanaw to ay; co e aw salso known as civil law
US law is rooted inEnglish common law
2011 Pearson Education, Inc.
5-12
-
7/29/2019 Global Marketing 5
4/8
.
Common Law Civil Law
Disputes are decidedby reliance on the
Legal system reflectsthe structural concepts
judicial decisions
Com anies are le all
Roman Empire
Companies are formed
incorporated by state
authority
by contract between
two or more parties Co e aw is use in
only a few areas; theUS Uniform
the actions of thecompany
2011 Pearson Education, Inc.
5-13
Commercial Code
Legal system in many Middle Eastern countries S aria a compre ensive co e governing
Muslim conduct in all areas of life, includingus ness
Koran Holy Book; like code law
Hadith like common law
, ,Muhammad
2011 Pearson Education, Inc.
5-14
Get expert legal help
Prevent conflicts
Protect intellectualproper y
Protect licenses and
trade secretsAvoid bribery
2011 Pearson Education, Inc.
5-15
Refers to a courts authority to rule on
nations borders or to exercise power over
Employees of foreign companies should
subject to jurisdiction of host-country courts
demonstrated that the company is doingbusiness in the state the court sits
2011 Pearson Education, Inc.
5-16
-
7/29/2019 Global Marketing 5
5/8
Intellectual property must be registered ineac country w ere us ness s con ucte
Patent: gives an inventor exclusive right to make,use, an se an nven on or a spec e per o otime
, , ,emblem used to distinguish it from competingroducts
Copyright: establishes ownership of a written,recorded, erformed, or filmed creative work
2011 Pearson Education, Inc.
5-17
Counterfeitin unauthorized co inand production of a product
product name differs slightly from awe - nown ran
Pirac unauthorized ublication orreproduction of copyrighted work
2011 Pearson Education, Inc.
5-18
2011 Pearson Education, Inc.
5-19
In the US re istration is with theFederal Patent Office
n urope, app can s use e uropeanPatent Office or register country-by-country
will cover 27 countries
2011 Pearson Education, Inc.
5-20
-
7/29/2019 Global Marketing 5
6/8
Governed by the Madrid Agreement andt e Ma ri Protoco
Allows trademark owners to seekprotection in as many as 74 countries with
a single application and fee
2011 Pearson Education, Inc.
5-21
International Convention for the Protection of
Paris Convention
Facilitates multi-country patent registration,ensures that once a com an files it has a ri htof priority in other countries for one year from
that date atent ooperat on reaty
European Patent Convention
2011 Pearson Education, Inc.
5-22
U.S. Companies Receiving theMost Patents, 2009
2011 Pearson Education, Inc.
5-23
Laws are designed to combat restrictive businessractices and to encoura e com etition
Enforced by FTC in the US, Fair Trade Commissionin Japan, European Commission in European
n on The Sherman Act of 1890 prohibits certain
,limiting production, allocating markets, or anyother scheme desi ned to limit or avoid
competition; law applies to US companies outsideUS borders and to foreign companies operating in
2011 Pearson Education, Inc.
5-24
t e
-
7/29/2019 Global Marketing 5
7/8
Licensing is a contractual agreement in
patents, trademarks, trade secrets,,
return for royalty payments or other forms ofcom ensation
Important considerations
What assets ma be licensed How to price assets
he rights granted
2011 Pearson Education, Inc.
5-25
Trade secrets are confidential information or
not in the public domain and for which stepshave been taken to kee it secret
To prevent disclosure, use confidentialitycontracts
The Uniform Trade Secrets Act has been
ado ted b most US states TRIPS, Trade-Related Aspects of Intellectual
Pro ert Ri hts si ned b members of GATT
2011 Pearson Education, Inc.
5-26
Foreign Corrupt Practices Act Requires publicly held companies to institute
interna accounting contro s t at wou recor atransactions Makes it a crime for a US cor oration to bribe an
official of a foreign government or political partyto obtain or retain business
ro s paymen s o r par es w en ere sreason to believe it may be channeled to foreignofficials
Omnibus Trade and Competitiveness ActAllows for grease payments to cut red tape; i.e.,
2011 Pearson Education, Inc.
5-27
,permits
2011 Pearson Education, Inc.
5-28
-
7/29/2019 Global Marketing 5
8/8
Litigation Formal arbitration
Settle disputes outside of court
Groups agree to abide by panels decision
1958 United Nations Convention on theRecognition and Enforcement of Foreign
Arbitral Awards New York Convention Most important treaty regarding international
arbitration signed by 107 countries
2011 Pearson Education, Inc.
5-29
Agencies, both governmental and non-governmental,
that enforce laws or set guidelines for conductingus ness
Marketing activities affected by international and,
Increase in business legislation to protect:1. Companies - unfair competition (protect home
industries)
2. Consumers - unfair business practices. oc e y - un r e us ness e av or
2011 Pearson Education, Inc.
5-30
Growth of special interest groups:
Consumerist movement - strengthen rightsand powers of buyerse.g., rue n eres cos o oan
basic ingredients in product ersona a a - cus om ze pro uc s - pr vacy
issues - public policy issue- -
complaints
2011 Pearson Education, Inc.
5-31
Ethics vary around the world What is acce table in one countr ma be considered
unethical in another To do the right thing and generate publicity, companies
can ta e an act ve approac on et ca ssues
Asian officials - rife Bribes aid - smallest of clearances
Survey - Chinese most willing to pay bribes Asian governments to clean up LT economic dividends
2011 Pearson Education, Inc.
5-32