INTB 3355
Spring 2015
Final Exam Review Document

I. Political Forces

1. Political risk
Determinants of political risk a) Conflict and violence – Citizens protesting against their government, Territorial disputes, Disputes based on ethnic, racial, or religious divisions
b) Terrorism and kidnapping – Unlawful acts of violence for a variety of reasons - Ransom, Overthrow government, Release of imprisoned colleagues, Revenge, Punish religious nonbelievers. Situations – Kidnapping for ransom, Paying ransom becomes counterproductive, Countermeasures by industry, Chemical and biological terrorism, Kidnapping as a means of funding terrorist groups, Business executives (local and international) as targets, Insurance, Prevention
c) Property seizure - Confiscation
- Expropriation
- Nationalization – Reasons- To extract money if government suspects hidden profits, Profitability- the government believes it can run the firms more efficiently and make more money Ideology, Job preservation: government saves jobs by saving dying industries, Control follows money: subsidized firms often targets of nationalization, Happenstance: nationalization of German firms after World War 2.
d) Local content requirements
Laws stipulating that a specified amount of a good or service be supplied by producers in the domestic market.
Issues to consider – cost, lower risk of confiscation and expropriation, impacting local communities 2. Privatization – Transfer of public sector assets to the private sector, Transfer of management of state activities through contracts & leases, contracting of activities previously conducted by the state.

II. Intellectual Property and Other Legal Forces

1. Sources of law in international business
Treaties – agreements between countries- also called conventions, covenants, compacts, protocols
Customary international law –