Political and Legal Determinants of International Management Flashcards
Political environment identifies key players that the MNC has to deal with politically. Like who?
- Governamnt
- Political Parties
- Trade Unions
- Interest Groups
- Public Opinion
Name the two structures by which states are governed?
- Authoritarian
2. Democary
Characteristics of an Authoritarian government?
- Power determines
- Few rights
- Restrictions
- Few candidates
- Admin arm of the government
- Press controlled state
What alters the transaction costs for MNC & influences decision making?
Government incentives
Preferential subsidies
Political acts
What may high import tax lead an MNC to do?
FDI
What is a key skill for the MNC to have
Being politically astute
How is Air France an example of political history?
It has a virtual monopoly to all French colonies
What leads to a vast knowledge of the local martket?
Linguistics, cultural links & personal relationships
Trade & Investment dominance in Spain is a result of what?
Political pressure in the form of economic aid packages with trade conditions.
What affects business relations
Affinity & Animosity
What is the two party system?
Two broadly based parties dominate, alternating between government and opposition.
What is the Multi Party system?
Many parties that represent a wide spectrum of views, the government is likey to coalate.
In the Case Study of Argentina who was the President and what party?
Cristina Fernadnez de KIrchner
Victory Party
How did the Argentinian government interfere with the economy?
- Controls were put on trade an access to to foreign exchange
- Trade Barriers
- Tax on foreign purchases made on credit/ debit cards
Who was elected the new President? and what did he advocate?
Macri, former business man
He advocated free market
What did the new Argentinian government do?
- Devalued the Peso
- Trade barriers removed
- Capital controls lifted on repatriation
