The legal environment Flashcards
What are the three spheres of the legal environment ?
- National legal system
- regional law
- international legal obligations
What is public law ?
this concerns relations between the citizen / organisations from the state
What is civil law ?
this concerns relations between individuals or companies
What is litigation ?
the process of settling civil disputes in court
What is criminal law ?
This concerns offences designated by state authorities and the processes by which those accused of violations are prosecuted
What are the two types of national legal systems ?
- civil law tradition
2. common law tradition
What is civil law tradition ?
it is based on comprehensive codes that set out the basic law (most western countries
What is common law tradition ?
this is based on a body of judge made law through decided cases (based on precedent )
What are the types of EU law ?
- regulations - directly applicable in member states
2. Directives - require member states to implement their provisions
What are the risks which stem from the HOST country legal environment ?
- FDI laws
- contract laws
- internet and e-commerce regulations
- environmental laws
What are the risks which stem from the home country ?
- FCPA ( The Foreign Corrupt Practices Act
- Antiboycott regulations
- Accounting and reporting laws
- Transparency in financial reporting
What is the foreign corrupt practices act ?
This act makes it illegal to offer bribes to foreign parties
What is the definition of extraterritoriality ?
The application of home country laws to other countries
How can country risk be managed?
- Proactive environmental scanning
- strict adherence to ethical standards
- alliances with qualified local partners
