Global Marketing: Challenges and Strategies
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CHAPTER 6 — Political and Legal Environment of Global Marketing 1. Political Risks
• Confiscation: Government takes property without payment. • Expropriation:
Government takes property with some reimbursements. • Domestication: Government pressures
foreign businesses to transfer ownership or operations to local control. 2.
Political Vulnerability Certain industries attract more gov’t scrutiny: • Energy
• Telecommunications • Pharmaceuticals • Transportation • Media 3.
Strategies to Reduce Political Risk • Joint ventures (local partner = lower risk)
• Licensing/franchising • Local production • Corporate citizenship/goodwill • Lobbying/Legal protections
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