Chapter 2 : Political, Regulatory, Technological, Dimensions

Question 1

Political Environment:

Answer 1

• Ideologies
• Evaluate a political system along two dimensions: (1) rights of citizens based on a system of government (range democratic to totalitarian); (2) Focus of political system on individualism vs. collectivism.
• No pure form of government
• Democratic tend to emphasize individualism and totalitarian tends to emphasize collectivism.

Question 2

Legal and Regulatory Environment

Answer 2

• Confusion and challenge for the MNC due to many different laws and regulations in global business operations
• MNCs must carefully evaluate legal framework in each market before doing business (doivent évaluer soigneusement le cadre juridique de chaque marché avant d’entreprendre des activités commerciales. )

Question 3

Legal and Regulatory Issues

Answer 3

• Foreign Corrupt Practices Act
  
  • Illegal to influence foreign officials through
  • Personal payment
  • Political contributions
• When bribes removed(pots-de-vins supprimé), MNCs (multi nationale) more willing to do business in that country
• Restrictive bureaucratization
  
  • Government controls often (souvent) inefficient and uncorrected
  • Local politics often prevail over national concerns
    Privatizations

Question 4

Regulation of Trade and Investment

Answer 4

Individual countries use legal and regulatory policies to affect the international management environment

If a country is perceived to engage in unfair trade practices (WTO and similar agreements)
Government support (subsidies)
Require MNCs to accept local partners

Response may be
Retaliatory tariffs
Restrictive trade regulations

Question 5

Technological Environment and Global Shifts in Production

Answer 5

Biotechnology
Nanotechnology
Satellites
Automatic translation telephones
Artificial intelligence and embedded learning technology
Advancements in computer chip technology
Supercomputers
E-business

Business-to-business (B2B)
Business to consumer (B2C) transactions
e-tailing
Financial services (e-cash)

Question 6

Ethics and Social Responsibility

Answer 6

Ethics:
- Study of morality and standards of conduct
- Dilemmas arising from conflicts between ethical standards between countries most evident in employment practices
- Inferring right vs. wrong in legal sense