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    Lecture 9 (Int. MKTG)

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    ASAD ULLAH
    The international political and legal environment can significantly impact international business. Government relationships between countries influence international marketing, as political conflicts can harm business and trade. International laws and agreements also affect international firms, who must consider both home and host country regulations. Terrorism can indirectly hurt many companies through reduced demand and economic impacts, though some security and technology firms may benefit. The international marketer needs to carefully monitor the political, legal, and security environments to plan for changes.

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    Lecture 9 (Int. MKTG)

    Uploaded by

    ASAD ULLAH
    16 views1 page
    The international political and legal environment can significantly impact international business. Government relationships between countries influence international marketing, as political conflicts can harm business and trade. International laws and agreements also affect international firms, who must consider both home and host country regulations. Terrorism can indirectly hurt many companies through reduced demand and economic impacts, though some security and technology firms may benefit. The international marketer needs to carefully monitor the political, legal, and security environments to plan for changes.

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    Lecture 9 (Int. Mktg)

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    The international political and legal environment can significantly impact international business. Government relationships between countries influence international marketing, as political conflicts can harm business and trade. International laws and agreements also affect international firms, who must consider both home and host country regulations. Terrorism can indirectly hurt many companies through reduced demand and economic impacts, though some security and technology firms may benefit. The international marketer needs to carefully monitor the political, legal, and security environments to plan for changes.

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    16 views1 page

    Lecture 9 (Int. MKTG)

    Uploaded by

    ASAD ULLAH
    The international political and legal environment can significantly impact international business. Government relationships between countries influence international marketing, as political conflicts can harm business and trade. International laws and agreements also affect international firms, who must consider both home and host country regulations. Terrorism can indirectly hurt many companies through reduced demand and economic impacts, though some security and technology firms may benefit. The international marketer needs to carefully monitor the political, legal, and security environments to plan for changes.

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    The International Environment:

    In addition to the politics and laws of both the home and the host countries, the international
    marketer must consider the overall international political and legal environment. Relations
    between countries can have a profound impact on firms trying to do business internationally.

     International Politics:
    The effect of politics on international marketing is determined by both the bilateral political
    relations between home and host countries and the multilateral agreements governing the
    relations among groups of countries. The government-to-government relationship can have a
    profound effect, particularly if it becomes unfriendly. Numerous examples exist of the
    linkage between international politics and international marketing. E.g US-Iran relationship
    currently, the conflict is not allowing the two countries to do any sort of business or trade.
    International political relations do not always have harmful effects on international marketers.
    If bilateral political relations between countries improve, business can benefit. The
    international marketer needs to be aware of political currents worldwide and attempt to
    anticipate changes in the international political environment, good or bad, so that the firm can
    plan for it. Sometimes, however, management can only wait until the emotional commitment
    of conflict has settled and hope that rational governmental negotiations will succeed.

     International Law:
    International law plays an important role in the conduct of international business. Although
    no enforceable body of international law exists, certain treaties and agreements respected by a
    number of countries greatly influence international business operations. As an example, the
    World Trade Organization (WTO) defines internationally acceptable economic practices for
    its member nations. Although it does not deal directly with individual firms, it does influence
    them indirectly by providing a more stable and predictable international market environment.
    The international legal environment also affects the marketer to the extent that firms must
    concern themselves with jurisdictional disputes. Because no single body of international law
    exists, firms usually are restricted by both home and host country laws. If a conflict occurs
    between contracting parties in two different countries, a question arises concerning which
    country laws will be followed. Sometimes the contract will contain a jurisdictional clause,
    which settles the matter. If not, the parties to the dispute can follow either the laws of the
    country in which the agreement was made or those of the country in which the contract will
    have to be fulfilled.

     International Terrorism and Marketing:


    While always regrettable, terrorism nevertheless creates new opportunities for firms in a few
    industries like construction, security, and information technology. For most companies,
    however, terrorism results in reduced revenues or increased costs, and managers must be
    prepared for it. Terrorists intend to affect supply and demand in order to shatter existing
    economic systems; this brings about both direct and indirect effects. The direct consequences
    to business are the immediate costs levied on individual firms. The indirect negative
    consequences of terrorism begin with macroeconomic phenomena, such as the real or
    perceived decline in per-capita income, purchasing power, and stock market values. In the
    wake of a terror event, these trends cause a fall in the subjective (perceived) security of the
    nation. Buyers become uncertain about the state of their nation’s economy, and a sharp
    reduction in demand for both consumer and industrial goods follows. A further effect on
    enterprises may be the failures in power, communication, transport, and other infrastructure
    due to actual physical damage incurred at the terrorist’s hands.

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