International Marketing: The Political Environment 
International Marketing: Exam 2 Notes
Chapter 6: The Political Environment * Sovereignty of Nations * Sovereign state is independent & free from external control * Enjoys a full legal equality with other states * Governs own territory * Selects its own political, economic, and social systems * Has power to enter into agreements with other nations * Sovereignty refers to powers exercised by a state in relation to other countries and the supreme powers exercised over its own members * State sets requirements for citizenship, defines geographical boundaries, and controls trade and the movement of people & goods across its borders * Citizen is subject to states laws even when beyond national borders * It is with the extension of natural laws beyond country’s borders that much of the conflict in international business arises * The EU, NAFTA, NATO, and WTO represent examples of nations voluntarily agreeing to give up some sovereign rights in order to participate with members nations for a common, mutually beneficial goal * US’s involvement in international political affiliations is surprisingly low (it is largely sovereign) * WTO is considered the biggest threat so far to national sovereignty (member nations abide by international covenants and arbitration procedures that can override national laws and have far reaching ramifications for citizens) * Foreign investment is also perceived as a threat to sovereignty * National sovereignty is a critical issue in assessing the environment in which a firm operates * Nationalism: intense feeling of national pride & unity, an awakening of a nation’s people to pride in their country * Economic nationalism has one of its central aims in the preservation of national economic autonomy in that residents identify their interests with the preservation of the sovereignty of that nation in which
Chapter 6: The Political Environment * Sovereignty of Nations * Sovereign state is independent & free from external control * Enjoys a full legal equality with other states * Governs own territory * Selects its own political, economic, and social systems * Has power to enter into agreements with other nations * Sovereignty refers to powers exercised by a state in relation to other countries and the supreme powers exercised over its own members * State sets requirements for citizenship, defines geographical boundaries, and controls trade and the movement of people & goods across its borders * Citizen is subject to states laws even when beyond national borders * It is with the extension of natural laws beyond country’s borders that much of the conflict in international business arises * The EU, NAFTA, NATO, and WTO represent examples of nations voluntarily agreeing to give up some sovereign rights in order to participate with members nations for a common, mutually beneficial goal * US’s involvement in international political affiliations is surprisingly low (it is largely sovereign) * WTO is considered the biggest threat so far to national sovereignty (member nations abide by international covenants and arbitration procedures that can override national laws and have far reaching ramifications for citizens) * Foreign investment is also perceived as a threat to sovereignty * National sovereignty is a critical issue in assessing the environment in which a firm operates * Nationalism: intense feeling of national pride & unity, an awakening of a nation’s people to pride in their country * Economic nationalism has one of its central aims in the preservation of national economic autonomy in that residents identify their interests with the preservation of the sovereignty of that nation in which