International Marketing Transactions With A Country example essay topic

Legal and Political Environments The legal and political environments of global markets differ by country and often by region within a country. Global marketers must be aware of each environmental risk in global markets and develop contingency plans to overcome them. Legal Environment Clearly, the global legal environment is very dynamic and complex. It is the result of three forces: international law, U.S. domestic law, and legal requirements of host nations.

According to Czinkota and Ronkainen, (2004), when a marketer conducts international marketing transactions with a country, it is very imperative that managers know and remain abreast of the policies and regulations of that country. Whether a firm is located abroad or domestically, it will be subject to government policies and the legal system. However, even though many of these laws and regulations do not pertain to international marketing transactions, they can have a major impact on a firm's opportunities abroad. Therefore, the best course to follow is to get legal help. However, the astute, proactive marketer can do a great deal to prevent legal conflicts from arising in the first place, especially concerning the following legal issues such as establishment, jurisdiction, environmental superfund, intellectual property rights, counterfeiting, antitrust, licensing and trade secrets, bribery, gray market, trade sanctions, and embargoes. Further, the services of counsel are essential for addressing these and other legal issues.

The importance of international law firms is growing as national firms realize that to properly serve their clients, they must have a presence in overseas jurisdictions. Political Environment Moreover, the political environment has a very important impact on every business operation no matter what its size or its area of operation. Whether the company is domestic, national, international, large or small, the political factors of the country it is located in will have an impact on it. And the most crucial and unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a government's idea of how best to promote the national interest, considering its own resources and political philosophy. Further, international law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business.

Thus, political environment of countries is a critical concern for the international marketer and he or she should examine the salient features of political features of global markets they plan to enter. Political Risk According Czinkota and Ronkainen (2004), political risk is the risk of loss when investing in a given country caused by changes in a country's political structure or policies.

Bibliography

Czinkota, M.R., & Ronkainen, I.A. (2004). International Marketing (7th ed.) Mason, OH: South-Western..