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INTRODUCTION
Multinational Enterprises operate in different countries with different political and legal conditions. Analyze if the corporate policies will fit a desirable political and legal environment. Colombia Venezuela Germany Greece China Hong Kong North Korea South Korea
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POLITICAL ENVIRONMENT
It refers to: Public Institutions:
Government. Government Agencies. Government owned Business.
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POLITICAL SYSTEM
A political system integrates the parts of a society into a viable functioning unit. Challenge integration of people of diff. ethnic or cultural backgrounds.
It is influenced by forces within & outside the country. Internal Forces: Nature of population, size & influence of corporations & governmental bureaucracies, & the strength of the politicians. External Forces: International agreements, NGO s, Governmental organizations, etc.
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POLITICAL SYSTEM
Political process functions:
Interest articulation. Interest aggregation (bringing together different points of view) Policy making. Policy implementation and adjudication.
Hong Kong transition 1997.
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RELIABILITY OF DEMOCRACY
Democracies from the 70 s are unstable. Indonesia. CIS. Corruption, internal division, oligarchies, military movements, destabilization from abroad. Two countries with a McDonalds have never fought each other
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DEMOCRACY
Election Systems
USA Direct elections. UK Parliament. Israel Both
DEMOCRACY
The development of communications help in an informed election. Internet has helped to reduce the power of totalitarian regimes. Democracies are not perfect, but people believe that it is the best form of government. Trust - Politicians and Corruption. Confidence on the government. % of population voting.
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TOTALITARIANISM
Decision making is restricted to a few individuals. Theocratic Totalitarianism
Religious leaders are the political leaders.
Iran, Afghanistan
Secular Totalitarianism
Control is enforced through military power.
Cambodia, Iraq, North Korea
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Civil disorder.
Corralito Financiero. Argentina 2002. Crise conomique France 2008 2009 kidnapping of personnel.
External relations
Animosities Colombia Equator
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Macro affecting all foreign investment. Evo Morales Nationalization of the exploitation of national interest resources.
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LOBBYING
Lobbying is the practice and profession of influencing governmental decisions, carried out by agents who present the concerns of special interests to legislators and administrators. 1830 Regulation of Lobbying Act of 1946
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Common Cause Mothers Against Drunk Driving the National Abortion and Reproductive Rights Action League the National Rifle Association the National Coalition for the Homeless
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LOBBYIST
Activist usually paid by an interest group to promote their positions to legislatures. A lobbyist can also work to change public opinion through advertising campaigns or by influencing 'opinion leaders' or pundits, thereby creating a climate for the change his or her employer desires.
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