• Describe the three types of political systes
• Discuss each cause of political ris! an" ho#
firs can ana$e the
• I"entify ho# the three le$al systes are uni%ue
• I"entify $lobal le$al issues facin$ copanies
• Discuss the roles of ethical beha&ior an" social
responsibility in international business
Political Ideologies
$roups nee" to balance
each other's po#er 
)nly in"i&i"uals an"
pri&ate $roups can
preser&e personal liberties
Democracy
people or their representati&es
ree"o of e.pression
/inority ri$hts
onpolitical bureaucracies
Ipose"
  o&ernent controls uch of people's li&es
  ea"ers "o not tolerate opposin$ &ie#points
 
Forms o Totalitarianism
#ecular totalitarianism   !military and $ureaucratic leadership"
*ribal totalitarianis
Causes o Political %is& 
Property sei6ure
'rises rom(
 *erritorial "isputes
  an" fir's assets
ly nonstop #hen possible an" a&oi" unsecure"
areas of airports
of transportation
beha&ior 
%uestions
stri!es
Terrorism and +idnapping
Property #eiure
a copany to the $o&ernent
#ithout copensation
a copany to the $o&ernent
#ith copensation ationali6ation
$o&ernent of an entire
in"ustry
1       
2       
 3       
Policies and Laws
re%uireents:
Specify the portion
to be supplied
by local firms
-anaging Political %is& 
-anaging Political %is& 
  Inforation $atherin$ Gather data to better 
predict and manage risk
predict and manage risk
-anaging Political %is& 
on political matters
on political matters
.orld/s Legal #ystems
0lo$al Legal Issues I
- Piracy<counterfeits a serious proble
 Patent   (.clu"es all but the in&entor fro a!in$, usin$,
  or sellin$ the in&ention =>*) ? 20 years@ 
 Trademar&    >or"s or sybols that "istin$uish a pro"uct an"
  its anufacturer =ACoca-ColaA@
 Copyright   ree"o of creator to publish or "ispose of ori$inal
  #or!s as they choose =AHappy Birth"ay to ouA@ 
 
0lo$al Legal Issues II
Pro"uct safety an" liability
+ntitrust =antionopoly@ la#s
- Prevent market sharing price fi"ing and
unfair advantage
Personal beha&ior in accor"ance #ith rules or
stan"ar"s for ri$ht con"uct or orality
Ethical Behavior
  espect consuers' ri$hts
  (ncoura$e "e&elopent
  Ipro&e health
 
International %elations
Ipro&e" business counications
(fficient "istribution systes
(.pan"e" opportunities
a&orable international   political relations foster:
 
• Describe the three types of political systes
• Discuss each cause of political ris! an" ho#
firs can ana$e the
• I"entify ho# the three le$al systes are uni%ue
• I"entify $lobal le$al issues facin$ copanies
• Discuss the roles of ethical beha&ior an" social
responsibility in international business