POLITICAL AND LEGAL ENVIRONMENT (CH.

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by: Luthfi Farhana - 11311093 Each national government in the world is set up trade and commerce with other countries and try to control the access of foreign companies to the national resources. Each country has a unique system of its own laws and regulations affecting the operations and activities of global companies, including global marketers the ability to identify market opportunities that exist. Laws and regulations forced displacement products, services, people, money, and expertise across national borders. Global Marketers should try to trace the series of national barriers and in some instances to an area. These efforts are hindered by the fact that laws and regulations are sometimes ambigius and constantly changing.

POLITICAL ENVIRONMENT Global marketing activities take place in a political environment of government institutions, political parties, and organizations through the people and rule the country by force. Any company doing business outside their home country should carefully study the structure of governance in the country that became the target and analyze issues arising from prominent political environment. This includes the government's attitude to the sovereignty, political risk, tax threat of melting stock. and seizure. Nationality and State Sovereignty A sovereign country is declared free and independent. State governing trade, manage the flow of incoming and outgoing people and country boundaries, and uses that are not separate legal rights for all people and goods within its territory. State authorities have the right and ability to lead domestiknva affairs without interference from outsiders and use international strength and with wisdom. Government action in the name of sovereignty occurred in the context of two important criteria: a country's stage of development as well as political and economic system implemented in the country. Many governments in developing countries to control the development of their national economies to protection through law and regulation. The goal is to encourage economic development by protecting the industry pioneer and strategic industries. Conversely, when many countries reached a high stage of economic development, their government announced (at least, in theory) that any practices or policies that hinder free trade

is illegal. Laws and antitrust regulations created to encourage fair competition. The law in developed countries are often established and maintained a social rule a nation; law can expand political behavior, culture, and even the intellectual and social activities. Most of the world economy combines elements of command and market systems, political power sovereignty in an economy that prioritizes the order quite far reaching economic life of a nation. In contrast, in capitalist countries, market-oriented democracy. power tends to be more obstacles. Recent global phenomenon in the command structure and the market tends to refer to privatization. namely. governmental actions designed to reduce direct government involvement in the economy as a supplier of goods and services. In essence, every act of privatization that minimize the portion of the command economic system mix.

Political Risk Political risk, the risk of changes in government policies that impact will hurt the company's ability to operate effectively and the ability labaannya, may deter companies that want to invest abroad. If the level of perceived political risk is lower, a country may be more attractive place to invest. Pofink risk level is proportional to a country's stage of economic development: The other semuanva is the same, the smaller developments in a country, the greater the political risk.

Tax Not infrequently a company registered in a country, do business in other countries, and has its head office in a third country. Geographic spread of activities require special thought for the payment of taxes. Many companies are making efforts to minimize its tax liability by moving the location of their income. There is no universal international law governing the levy of tax on companies that do business across national boundaries. To give equal treatment to the company, many of the countries negotiating bilateral tax treaties to provide tax reductions for the tax already paid abroad. The U.S. has dozens of such agreements currently in effect. In general, foreign companies are taxed by the host country ampai rate charged in the country of origin, an approach that does not increase the total tax burden to the company.

Foreclosure

Principal threat to the government filed against the company is a foreclosure. Foreclosure refers to the act of the government to abolish a corporation. Circumvent LEGAL ISSUES: IMPORTANT BUSINESS ISSUES It's clear, global legal environment is very dynamic and complex. Therefore, the best way to follow is to ask for legal help of an expert. However, astute and proactive marketers can do little to prevent the situation that lead to conflict, especially issues concerning the establishment, jurisdiction, patent and trademark, antitrust, licensing and trade secrets and bribery.

Establishment To run a business, citizens of a country should be guaranteed that they will be treated fairly in other countries. For example, in Western Europe, launching Ihnggal Market now guarantees citizens of member countries obtain fair treatment in terms of business and economic activities they are doing in the Common Market. Formulation of government regulation mengatilr trade, business, and economics in the EU provide additional subject of international law.

Jurisdiction Employees who work abroad should understand all matters relating to the jurisdiction of the local state court system: Foreign companies operating in the United States must understand that the court has jurisdiction over the rate at which the company may be appointed to "do business" in the state where court placed. The court may examine whether the foreign company had an office, running a business, having a bank account or other property, or has an agent or employee of another in the troubled country. Each party must reach agreement on the issues and the law of the country which will be used must be specifically mentioned in the jurisdictional clause. There are some alternative choice of: laws in the domicile or head office business of either party, the contract is made, or where the contract executed. When disputes arise with such contracts, it should be examined and decided by a neutral party such as a court or arbitration body. If both parties fail to specify which state laws apply, there is a complex set of rules governing the "conflict of laws" adopted by a court or arbitral tribunal. Sometimes, the result determined with the

help of "scales of justice," in which the criterion of each party are in different sides of the scale.

Intellectual Property Rights: Patents and Trademarks Patents and trademarks are protected in one country may not be protected in other countries, so the global marketer must ensure that the right paten'dan trademark registered in any state where their business is located. In the United States, where patents, trademarks, and copyrights registered with the Federal Patent Office, patent holders keep control over the copyright to the life of the patent that though the product is not manufactured or sold. Protection of patents and trademarks in the United States is very good, and the laws of the United relying on tricks prudensi cases decided before the court as a guide. Sometimes companies find ways to capitalize on the way out or other unique opportunities offered by patent law and trademark in their respective countries. Violation of trademark and copyright are the critical issues in global marketing and it can be in various forms. Forgery (counterfeiting) is copying or producing a product illegally. Counterfeiting is not full, or impersonation, using a slightly different product name from the well known brands but close enough to make consumers associate it with the original product. The third type of counterfeiting is piracy (piracy), to publish or reproduce the copyrighted works illegally. Piracy particularly detrimental in the entertainment industry and software, computer programs, videotapes, cassettes and compact discs are generally easy to illegally duplicate.

Licenses and Trade Secrets Licenses are contractual agreements where the licensor permits the holder of a license to use patents, trademarks, trade secrets, technology or other intangible assets in exchange for the payment of royalties or other forms of compensation. The duration of the license agreement and the amount of royalties that can be received by the company is a matter of commercial negotiation between the giver and receiver licenses. and there are no restrictions on the delivery of royalties abroad. And in many countries. Elements of these licenses are regulated by government agencies. An important consideration in the license include an analysis of what assets (property rights) that will be for licensed companies, what is the cost of the asset. if only the right to

"make" the product or the right to "use" and "sell" their products as well. The right to grant sublicenses are other important issues. As with the distribution agreement. decisions must also be made for matters relating to exclusive or non-exclusive arrangement and the size of the authority of the licensee. Trade secrets are confidential information or knowledge that has commercial value, which are in copyright protection, and in which it was made steps to keep confidential. Trade secrets include manufacturing processes, formulas, designs, and customer lists. To protect the revelation of license patented trade secrets should not be connected to any employee who has access to information that States, trade secrets are protected by state law rather than federal law

INTERNATIONAL LAW International law can be defined as principles are regarded as binding by various state and nation. There are two categories of international law: public law, or international law, and international trade law. International law regarding trade and other areas that have traditionally been under the jurisdiction of each nation. International law enforcement still has a regulatory function, albeit in a broader sense rather than facing problems arising from the war. First, international law is basically a mixture of treaties, agreements, codes and agreements. Since trade between countries continues to grow, the rules in the affairs of trade assumed increased importance. While hukum.tersebut basically only applies to nations as a whole, an entity collection has grown to reject the idea, the only country interested in the international law.

Customary Law Versus Private Law (Law Code) Internasioanal civil law (private international law) is a legal entity that applies when the interpretation and disputes caused by trade transactions between companies from different countries. For the record, government trade laws appear gradually. Now inij majority countries have legal systems based on the traditions of the code (civil)Civil, despite that the number of countries that combines the concepts increases, and hybrid systems emerged. Act compiled at the national level, federal, or state; administrative law originally came from agencies and local communities, and the case law is a product of the justice system.

Under civil law or civil law, the judicial system is divided into civil law, trade. and criminal. Thus, trade law has its own administrative structure. For example, property rights established by the formal registration of the property is the trade court. The law code (civil) using codified, written norm, which is equipped with the court's decision. On the other hand, the common law established by tradition and something that can be used as an example, which is the decisions of previous cases; until now, trade law is not recognized as a specific entity. The differences include the definition of "providence of God"; were based on customary law this expression can only refer to floods, hurricanes, and other natural disasters unless extended by agreement. In countries that follow the civil law, an "interference can be avoided by doing" can be seen as God's will. In countries that follow the civil law, intellectual property rights must be registered, while in countries that follow common law, some-such as the trademark is not patented-determined by previous use. The legal system of the host country-that is, both customary law and civil-law directly affects the overall legal form of business to be taken. In countries that follow common law, the company received assurances from public authorities. In countries that follow the civil law, the company was established in order to operate under a contract between two or more parties are solely responsible for the actions taken by the company