The international political and legal environment

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  • Publicado : 2 de noviembre de 2009
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Internationalize its activities and operations is a fact that concerns the majority of establishedcompanies, since nowadays is a requirement to be part of the global market because in either way international behaviors affect them in the way that if they do not decide to become part of it, they aremissing vast opportunities within the evolution and growth being developed overseas.
Consequently, the process of doing so comes along with a multiplicity of factors that an international manager needsto deal with and handle in its most favorable way. The complexity of the task arises with the diversity of the political and legal systems from all countries and the host government thoughts andfeelings regarding a foreign enterprise which in most of the way is viewed as a potential intruder that could have a significant impact varying from the economic independence to politicalsovereignty.[1]

From this point on information regarding the several variables involved is indispensable. Crucial researches from both the home country and host country have to be taken into account in order toavoid any kind of difficulty that may translate latter into a risk for both sides.

The instability and vulnerability are major players in the field because the latter comes as a result from thefirst one in the sense that if a company will not consider putting huge effort for its product or services to enter into an area characterized for the high volatility in its law and political body.Nationalism can be a clear example of how government assurance to protect its nation, even if arguments are not as strong to determine a foreign company as a real threat to domestic actors, goes until acertain degree that taking control over the investment, meaning ownership risk, is been engaged by the host governance to take control of the management and the entirely organization. What these...
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