Documente Academic
Documente Profesional
Documente Cultură
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Ideological Forces
LO1
8-2
1-2
Dis 1: What do you think
Ideological force in your nation
1. What is kind of an ideological force
in your nation?
2. What do you think the advantage of
the above type?
3. What is best type for your nation
now? Explain pls?
8-3
1-3
Why Firms are Nationalized
LO2
8-4
1-4
Unfair Competition?
LO2
8-5
1-5
Dis 2: think about unfair
competition in Vietnam
1. Pls show the name of some industry
or firm is owned by government?
2. To list something is considered
unfair?
3. Pls vote for private or state owned
companies? What is the best now?
8-6
1-6
Privatization
8-7
1-7
Government Protection
Terrorism
Unlawful acts of violence committed for a wide
variety of reasons,
Economic gain: ransom (take money in exchange
something)
To overthrow (let down) a government
To gain release of imprisoned colleagues
To exact revenge (beat for beat) for real or
imagined wrongs
To punish nonbelievers of the terrorists' religion
LO3
8-8
1-8
Government Protection
LO3
8-9
1-9
Government Protection
Kidnapping for Ransom
Victims held for large ransoms
Columbia and Peru are dangerous places
for American executives
U.S. executives practice “commando
management” to avoid kidnap risk
Arrive secretly, meet for a few days and
fly off before kidnappers learn of their
presence
Such behavior is suggested when operating in
countries that are on the U.S. State
Department’s warning list LO3
8-10
1-10
Countermeasures by Industry
LO3
8-11
1-11
Government Stability
Stable Government
Maintains itself in power and whose fiscal,
monetary and political policies are
predictable and not subject to sudden,
radical changes
Unstable Government
Cannot maintain itself in power or makes
sudden, unpredictable, or radical policy
changes
LO5
8-12
1-12
Traditional Hostilities
LO5
8-13
1-13
Country Risk Assessment
LO6
8-14
1-14
Country Risk Assessment
LO6
8-15
1-15
Information Content for CRA
LO6
8-16
1-16
Dis 2: CRA in Laos and India
8-17
1-17
Arguments for trade
restrictions
National defense
Sanctions to punish offending nations
Protect Infant (or dying) industry
Protect domestic jobs
Scientific tariff or fair competition
Retaliation
8-18
1-18
Dumping
LO7
8-19
1-19
Dumping
1-20
New Types of Dumping
LO7
8-21
1-21
New Types of Dumping
LO7
8-22
1-22
Subsidies and
Countervailing Duties
LO7
8-23
1-23
Dis 2: chinese lighter case
A lot of chinese goods sold in USA is lower than
that of home nation. The Chinese goods bear a
high tax rate of anti-dumping when imported into
USA. For lighter, Chinese government did not
collect tax and refund as usual. He would
urguered that it was no provident in government
support for low price. He was winner in this
game.
1. What do you think the evident for government
support in refund tax?
2. how do you do if you urgues with him?
8-24
1-24
Tariff Barriers
LO8
8-25
1-25
Non-Tariff Barriers
LO8
8-26
1-26
Non-Tariff Barriers
LO8
8-27
1-27
Chapter Seven
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
International Legal Forces
LO1
8-29
1-29
Sources of International Law
LO2
8-30
1-30
Extraterritoriality
LO2
8-31
1-31
International Dispute Settlement
Litigation (dispute) in the United States
Well-developed court systems that facilitate
litigation
One reason many people outside the
U.S. dislike litigation in the U.S. is the
process of discovery
Unlike most other countries, the U.S.
has two major court systems
The federal court system and the
state court systems
LO3
8-32
1-32
Performance of Contracts
LO3
8-33
1-33
Dis 1: Viena Convention 1980
8-34
1-34
Performance of Contracts
LO3
8-35
1-35
Intellectual Property
LO4
8-36
1-36
Intellectual Property
Patents - protection
International Convention for the Protection of
Industrial Property
European Patent Organization (EPO)
The World Intellectual Property Organization
(WIPO)
LO4
8-37
1-37
Intellectual Property
Trademarks
Protection varies by country, 10 to 20 years
Madrid Agreement of 1891
General American Convention for
Trademark and Commercial Protection
Bilateral basis in friendship, commerce, and
navigation treaties
LO4
8-38
1-38
Intellectual Property
Trade names
Protected in countries that adhere to the Convention
for the Protection of Industrial Property
Copyrights
Protection provided under the Berne Convention of
1886 which is adhered to by 77 countries
Universal Copyright Convention of 1954 adopted by
92 countries
LO4
8-39
1-39
Common Law or Civil Law?
Common Law
Jurisdiction has more power to expand rules to
fit particular cases
Civil Law
Jurisdiction is bound by the words in the code
Much more predictable
Religion Law
8-40
1-40
Law or custom
Incoterms
E: exwork
F: FOB, FAS,
FCA
C: CFA, CIF,
CIP, CPT
D: DAT,DAP,
DDP
8-41
1-41
Legal System Differences
between Europe and United States
Europe
Legislation is rarely amended and
regulations are rarely revised
Courts are not as often asked to give their
interpretations. If they are, the decisions
are rarely appealed
United States
Laws and regulations are constantly being
amended or revised by legislatures and the
agencies
Islam contries
8-42
1-42
Standardizing Laws
8-43
1-43
Taxation
LO5
8-44
1-44
Tax Laws and Regulations
1-45
Dis 2: Tax system in Vietnam
8-46
1-46
Antitrust Laws
Antitrust laws
Laws to prevent price fixing, market sharing, and
business monopolies
Competition policy
The European Union equivalent of antitrust laws
The U.S. and the EU have attempted to enforce their
antitrust laws extraterritorially
Japan’s Fair Trade Commission
The “toothless tiger”
Japanese companies are incorporating antitrust
thinking into their strategy LO6
8-47
1-47
Tariffs, Quotas,
and Other Trade Obstacles
Purposes of tariffs
To raise revenue for government
To protect domestic producers
Quotas limit the number or amount of imports
For protection
Other trade obstacles include
Health requirements
Packaging requirements
Language requirements
Weak patent or trademark protection
Quarantine periods
Voluntary Restraint Agreements
LO6
8-48
1-48
Worldwide Examples of Tarrifs
8-49
1-49
Torts
1-50
U.S. Laws That Affect U.S. Firms’
International Business
LO8
8-51
1-51
Accounting Law
LO8
8-52
1-52
Dis 3: Accounting in Viet Nam
8-53
1-53
Chapter Eight
Understanding the
International Monetary
System and Financial Forces
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
IMF’s Current Exchange
Rate Arrangements
LO1
8-55
1-55
IMF’s Current Exchange
Rate Arrangements
Crawling pegs
Exchange rates within crawling bands
Managed float with no preannounced path for the
exchange rate
Independently floating exchange rates
LO1
8-56
1-56
Summary of
Currency Arrangements
LO1
8-57
1-57
Bank of International Settlements
LO2
8-58
1-58
Euro to U.S. Dollar
Exchange Rate
8-59
1-59
Foreign Exchange Quotations
Exchange Rates
Foreign currency X’s per U.S.$ rate can be
computed from the reciprocal of the U.S. $
equivalent rate of currency X (and vice versa)
LO3
8-60
1-60
Exchange Rate Forecasting
LO3
8-61
1-61
Exchange Rate Forecasting
Fundamental approach
Exchange rate prediction based on econometric
models that attempt to capture the variables and
their correct relationships
Technical analysis
An approach that analyzes data for trends and then
projects these trends forward
LO3
8-62
1-62
Currency Exchange Controls
LO4
8-63
1-63
Currency Exchange Controls
LO4
8-64
1-64
Balance of Payments
LO6
8-65
1-65
A Nation’s Balance of Payments
LO6
8-66
1-66
Balance of Payments
Current Account
LO6
8-67
1-67
A Nation’s Balance of Payment
LO6
8-68
1-68