The main goals of this chapter are to: What the sovereignty of nations means and how it can affect the stability of government policies; how different governmental types, political parties, nationalism, targeted fear/animosity, and trade disputes can affect the environment for marketing in foreign countries; the political risks of global business and the factors that affect stability;. | The Political Environment: A Critical Concern Chapter 6 Learning Objectives LO1 What the sovereignty of nations means and how it can affect the stability of government policies LO2 How different governmental types, political parties, nationalism, targeted fear/animosity, and trade disputes can affect the environment for marketing in foreign countries LO3 The political risks of global business and the factors that affect stability LO4 The importance of the political system to international marketing and its effect on foreign investments LO5 The impact of political and social activists, violence, and terrorism on international business LO6 How to assess and reduce the effect of political vulnerability LO7 How and why governments encourage foreign investment World Trade Goes Bananas! The Banana wars and conflict between the . and Europe started out as a simple tariff dispute between France and . companies exporting bananas from Latin American countries to France France gave preferential treatment for bananas coming from its former colonies in the Caribbean and Africa The rest is history and politics, see more here: “Banana Wars” 3 Sovereignty of Nations A sovereign state is independent and free from all external control enjoys full legal equality with other states governs its own territory selects its own political, economic, and social systems and has the power to enter into agreements with other nations. Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members 4 Stability of Government Policies Radical shifts in government philosophy can occur when: An opposing political party ascends to power Pressure from nationalist and self-interest groups Weakened economic conditions Bias against foreign investment or conflicts between governments 5 Instability of Governments and Policies: Political Reasons Some forms of government seem to be inherently unstable Changes in political . | The Political Environment: A Critical Concern Chapter 6 Learning Objectives LO1 What the sovereignty of nations means and how it can affect the stability of government policies LO2 How different governmental types, political parties, nationalism, targeted fear/animosity, and trade disputes can affect the environment for marketing in foreign countries LO3 The political risks of global business and the factors that affect stability LO4 The importance of the political system to international marketing and its effect on foreign investments LO5 The impact of political and social activists, violence, and terrorism on international business LO6 How to assess and reduce the effect of political vulnerability LO7 How and why governments encourage foreign investment World Trade Goes Bananas! The Banana wars and conflict between the . and Europe started out as a simple tariff dispute between France and . companies exporting bananas from Latin American countries to France France gave .
