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Chp 6 Government, Law, and Political Risk in International Business -…
Chp 6 Government, Law, and Political Risk in International Business
International managers are challenged with political and regulatory systems
Political and economic environment
financial risk for government regulations
Systematic Risk
Unsystematic Risk
Country Risk
Credit or Default Risk
Interest Rate Risk
Foreign Exchange Risk
Market Risk
External Economic Relations as Risk Factors
imports regulations, wars, taxes
Political environment
Ethnicity
Religious differences
Government Issues and Corruption
World Bank : reforms in developing countries to address the demand side of bribery
Legal environment
different laws and practice around the globe
direct affect in businesses
cost of goods and/or services they offer, the price they charge, and costs for labor, raw materials, and technology.
common law, civil law, and theocratic law.