political and legal environment
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Political And Legal Environment Presented By : -Rohit Raina0613-MBA-2013
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INTRODUCTION Multinational Enterprises operate in
different countries with different political and legal conditions.
Analyse if the corporate policies will fit a desirable political and legal environment.
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POLITICAL ENVIRONMENTIt refers to:• Public Institutions: Government. Government Agencies. Government owned Business.• Non public Institutions: Interest Groups.
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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.
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TYPES OF POLITICAL SYSTEMSDemocracyTotalitarianismMixed
Representative Republic
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DEMOCRACY The people make the decisions Equal Rights Many Freedoms
Representative Democracies Elect citizens to represent them
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TOTALITARIANISM Limited rights and freedoms Government (one or few) makes
decisions People have no right to interfere in the
laws
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MIXED Characteristics of both systems
Almost all political systems are mixed
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Layers of Political Influence First Layer: The Home Environment
Second Layer: The Host Environment
Third Layer: The Global Environment
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LEGAL ENVIRONMENT Each nation develops and adapts a legal
system that fits its own economic, political and social goals
Two basic types of legal systems in global community Common Law Code Law
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Layers of the Legal Environment The First Layer: The Home Environment
The Second Layer: The Host Environment
The Third Layer: The Global Environment
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Settling International Disputes Despite trade agreements, there are still
problems and legal disputes among companies and governments
Three ways to settle differences: Negotiation Arbitration Litigation
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