Please enable JavaScript.
Coggle requires JavaScript to display documents.
Political & legal environment (definition (grey market refers to…
Political & legal environment
political risks- loss caused by changes in political structure/policies
ownership risk- exposes property and life
transfer risk- encountered when attempts are made to shift funds between countries
operating risk- interference with ongoing operations of a firm
import controls
most efficient sources of supply are not available
2nd best or inferior products are the result
higher costs for restricted goods/services
politics
multilateral agreements among group of countries
bilateral relations- between two nations
anti-dumping law
imposed on goods believed to
be priced below fair market value
predatory dumping - intentional dumping to increase market share, amounts to a price war
unintentional - time lags between dates of sales, shipment and arrival
definition
grey market refers to distribution channels uncontrolled by producers which causes goods to enter the marketplace in ways not desired by manufacturers.
trade sanctions and embargoes refer to governmental actions that distort the free flow of trade in goods/services/ideas for decidedly adversarial and political reasons.
boycott refers to the refusal to purchase from or trade with a company because of political or ideological differences
common law is based on tradition and depends less on written statutes and codes than precedents and customs
code law is based on a comprehensive set of written statutes which try to spell out all possible legal rules explicitly