INTERNATIONAL MARKETING 6e Chapter 6 The International political and Legal environment Copyright 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc, 6277 Sea Harbor Drive, Orlando, Florida 32887-6777
Copyright © 2001 by Harcourt, Inc.. All rights reserved. Requests for permissions to make copies of any part of the work should be mailed to the following address: Permissions Department, Harcourt, Inc., 6277 Sea Harbor Drive, Orlando, Florida 32887-6777. INTERNATIONAL MARKETING 6e The International Political and Legal Environment Chapter 6
The political and Legal Environment Home country political and legal environment The Environmental Superfund Intellectual property rights Gray markets Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-2 The Political and Legal Environment Home country political and legal environment • The Environmental Superfund • Intellectual property rights • Gray markets
The political and Legal Environment Embargoes and sanctions government actions to distort the free flow of trade in goods services, or ideas for adversarial and political purposes Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-3 The Political and Legal Environment Embargoes and sanctions • “…government actions to distort the free flow of trade in goods, services, or ideas for adversarial and political purposes
Export controls U.S. export control systems Export Administration Act(Commerce Department) Munitions Control Act(State Department Determinants for export controls National security, foreign policy, short supply, nuclear nonproliferation Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-4 Export Controls U.S. export control systems • Export Administration Act (Commerce Department) • Munitions Control Act (State Department) • Determinants for export controls – National security, foreign policy, short supply, nuclear nonproliferation
Export Controls n Critical commodities list Sensitive to national security Controlled for other purposes No License Required(NLR) n Export license Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-5 Export Controls Critical commodities list • Sensitive to national security • Controlled for other purposes No License Required (NLR) Export license
U.S.Export Control System Decision Steps in the Export Licensing Process Should a given Product be Exported? To a Given Country To a given End user? ForA Particular end use? Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-6 Should a Given Product be Exported? To a Given Country? To a Given End User? Decision Steps in the Export Licensing Process U.S. Export Control System For A Particular End Use?
Major Changes Altering Export Controls Collapse of the Iron Increased foreign Curtain availability of high Export controls have technology moved from a strategic o Increase in the speed balance to a tactical and dissemination of balance information and approach innovation Major focus of export o Difficulty in monitoring controls rest on the the transfer of Third world miniaturized high Loosening of mutual technology bonds between allied nations Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-7 Major Changes Altering Export Controls Collapse of the Iron Curtain Export controls have moved from a “strategic balance” to a ‘tactical balance” approach Major focus of export controls rest on the Third World Loosening of mutual bonds between allied nations Increased foreign availability of high technology Increase in the speed and dissemination of information and innovation Difficulty in monitoring the transfer of miniaturized high technology
Export Control Problems and Conflicts Determining what constitutes military-use, civilian-use, and dual-use products Implementing controls on physical goods and knowledge and technology transfers Monitoring access to deemed exports by foreign nationals Recognizing nationalistic desires to protect economic interests Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-8 Export Control Problems and Conflicts Determining what constitutes military-use, civilian-use, and dual-use products. Implementing controls on physical goods and knowledge and technology transfers. Monitoring access to deemed exports by foreign nationals. Recognizing nationalistic desires to protect economic interests
n Tariffs Voluntary restraint agreements Quota systems Administrative problems Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-9 Import Controls Tariffs Voluntary restraint agreements Quota systems Administrative problems
o Administrative problems Monetary and social costs to consumers while benefiting protected groups Downstream change in the composition of imports to circumvent narrowly defined protectionist measures The failure of protected firms become more efficient and competitive Copyright 2001 by Harcourt, Inc. All rights reserved
Copyright © 2001 by Harcourt, Inc. All rights reserved. 6-10 Import Controls Administrative problems • Monetary and social costs to consumers while benefiting protected groups. • Downstream change in the composition of imports to circumvent narrowly defined protectionist measures. • The failure of protected firms become more efficient and competitive