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Lecture Global marketing: Contemporary theory, practice, and cases: Chapter 4 - Ilan Alon, Eugene Jaffe

Chapter 4, analyzing political and legal environments. The main contents of this chapter include all of the following: World legal systems, legal issues for global marketing, political risk. | Chapter 4 – Analyzing Political and Legal Environments “Let every individual and institution think and act as a responsible trustee of Earth, seeking choices in ecology, economics and ethics that will provide a sustainable future, eliminate pollution, poverty and violence, awaken the wonder of life and foster peaceful progress in the human adventure.” John McConnell, founder of International Earth Day McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline World Legal Systems Legal Issues for Global Marketing Intellectual Property Issues Trade Regulations Arbitration & Mediation Marketing Mix Regulation Political Risk Terrorism Managing political risk Summary Common Law Court adjudications are the primary source of law, although governments pass statutes and legislation. While there are five legal systems in the world, Civil , Common and Muslim Law are dominant. Muslim Law Proceeds by way of example rather than principle. The many resultant inconsistencies make global business matters difficult to adjudicate. Civil Law Found in Europe, Asia, Central and South America. Consists of codified legislation interpreted by judges. Only about 30 percent of the world's gross domestic product is generated in countries governed by civil and common law systems. 4-3 3 World Legal Systems Figure 4-1 Legal Issues for Global Marketing Global marketers must understand the legal systems in which they operate. Common legal scenarios include: sales agencies distributorship agreements customs and international trade regulation export incentives and controls arbitration intellectual property rights international technology transfer Intellectual Property Issues: Territoriality All intellectual property law is based on the principle of territoriality. Each state or country determines for its own territory, what is to be protected, who should benefit from such protection and for how long, and how the protection should be enforced. Intellectual . | Chapter 4 – Analyzing Political and Legal Environments “Let every individual and institution think and act as a responsible trustee of Earth, seeking choices in ecology, economics and ethics that will provide a sustainable future, eliminate pollution, poverty and violence, awaken the wonder of life and foster peaceful progress in the human adventure.” John McConnell, founder of International Earth Day McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline World Legal Systems Legal Issues for Global Marketing Intellectual Property Issues Trade Regulations Arbitration & Mediation Marketing Mix Regulation Political Risk Terrorism Managing political risk Summary Common Law Court adjudications are the primary source of law, although governments pass statutes and legislation. While there are five legal systems in the world, Civil , Common and Muslim Law are dominant. Muslim Law Proceeds by way of example rather than principle. The many resultant