市场营销Chap6.pptVIP

6.1 The Sovereignty of Nations Sovereignty refers to: @Powers exercised by a state in relation to other countries @Supreme powers exercised over its members Abridge specific aspects of Sovereignty : Give up some of their sovereignty rights in order to coexist with other countries: @ EU @ NAFTA @ NATO @ WTO FI (Foreign Investment) can also be perceived as a threat to sovereignty. Sovereignty and Economic Development Governments of developing countries seek to exercise control over nations’ economic development by passing protectionist laws Objective: to encourage economic development by protecting emerging or strategic industries Nations of advanced economic development seek to eliminate constraints on free trade Objectives: promote fair trade, define and preserve nation’s social order #Knowledge of the philosophies of all major political parties. political climate: friendly or not? #Intense feeling of national pride and unity #An awakening of a nation’s people to pride in their country. The May Fourth Movement in 1919 marked a turning point in the history of Chinese nationalism. Chinese nationalism and Taiwan #Buy our country’s products only. #Restriction on imports, restrictive tariffs, and other barriers to trade. #Control over foreign investment. # Expropriation of foreign companies, restrictive investment policies, nationalization of industries, etc. @Nationalism feelings can be found even in the most economically prosperous countries. eg. US, Japan. How does Political risk happen: —The risk of loss when investing in a given country caused by changes in a country’s political structure or policies. —is the risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. Types of political risk Types of political risk (CONT.) Ⅳ Political and Social Activists（non-official）(P147:cases) political and social activists (PSA) can also interrupt the normal flow of trade. Greenpeace and Consumers International ha