Marketing
Evonth
Podcast1EmbargoesandSanctions.pptxSession 4 – Podcast 1: Embargoes and Sanctions
BUS 343 International Marketing
1
Learning Objectives
After studying this topic, you should be able to understand and explain:
How political environment and stability influence international marketing
How to evaluate and mitigate risks & controls associated with investments in foreign markets
Understand the bases for today’s legal systems
3
Home country political and legal environment
Home country policies and legalities can disadvantage firms that compete globally, for example, environmental issues:
Environmental Superfund
Kyoto Protocol
Copenhagen Summit
3
4
Home country political and legal environment
Ongoing struggles about IP rights due to competition between nations and companies at different stages of development and capability
Lack of IP rights in China
Grey markets or ‘parallel importing’:
products enter the market in ways not desired by their manufacturers
uncontrolled distribution channels
4
Embargoes, sanctions, and boycotts
Deliberate government distortion of trade for adversarial and political purposes
They can be enforced by the United Nations as a punishment:
inflict great economic damage
5
Export Controls
Export control systems impede upon the acquisition of goods by adversaries
Primarily used by the US
Established in Australia and New Zealand through involvement in the Wassenaar Arrangement
Conflict can arise due to nations safeguard their own economic interests
6
Import controls
Restrictions placed on international marketers by countries with trade deficits or infrastructure problems
Tariffs
Voluntary restraint agreements
Quota systems
7
Regulation of international business behaviour
Nations attempt to govern international marketing activities
Moral and ethical boundaries are set
Laws are set i.e. Australian Competition and Consumer Commission (ACCC)
WTO
8
2012 Corruption Perception Index
9
