Lobbying Flashcards
What is lobbying? Why is lobbying so important to businesses worldwide? How does it impact on international trade policy matters?
Lobbying is encouraging a government to change a law.
Lobbying is so important to businesses worldwide due to the fact that different policies apply in the world. In order maximize its benefit a company can lobby its way into the foreign market.
Without lobbying there would not be a lot of products to sell and it is a way to market in a country.
A government must be aware of lobbyists whose actions could impact on its decision making process. What measures should a government take to manage lobbying and to formulate the best possible policy alternatives?
A government can monitor all lobbying and prevent its decision making process being compromised. Through regulation it can manage lobbying.
What are the major theories capable of explaining lobbying and its impacts on international business?
Stakeholder theory:
Stakeholder theory is when taking into account all views of stakeholders before making a decision. It impacts on international business by letting everyone have a say.
Public choice theory:
The main motive is self-interest. It impacts on international business by letting the international businesses influence politicians in their favor.
