International trade bussiness
CHAPTER 3
Legal, Technological, Accounting, and Political Environments
Chapter Objectives
After studying this chapter, students should be able to:
1. Describe the major types of legal systems confronting international businesses.
2. Explain how domestic laws affect the ability of firms to conduct international business.
3. List the ways firms can resolve international business disputes.
4. Describe the impact of the host country's technological environment on international business.
5. Identify the factors that influence national accounting systems.
6. Explain how firms can protect themselves from political risk.
LECTURE OUTLINE
OPENING CASE: Harry Potter Goes to China
The opening case raises several issues associated with successfully navigating legal and political obstacles in the marketing of J.K. Rowling’s Harry Potter books in China.
Key Points
• Children’s books in China are often political tools used to shape young readers’ values.
• Much of the “whimsy” of Rowling’s writing was difficult to capture in Chinese.
• As Harry Potter was being launched in China, its release was jeopardized by a government campaign against “feudal superstition.”
• A counterfeit fifth Harry Potter novel (titled Harry Potter and the Leopard-Walk-Up-to-Dragon) was being sold as if it had been authored by J.K. Rowling.
• Two weeks after the release of Harry Potter and the Half-Blood Prince, unauthorized Chinese translations of the book were available for sale on the streets of Beijing.
• Despite widespread piracy, an estimated 8 million legal copies of Rowling’s works have been sold in China to date.
CHAPTER SUMMARY
Chapter Three explores the legal, political, and technological environment within which international businesses operate. The chapter begins with a discussion of the different types of legal systems international companies may encounter. It then goes on to discuss the way technological environments vary across
Legal, Technological, Accounting, and Political Environments
Chapter Objectives
After studying this chapter, students should be able to:
1. Describe the major types of legal systems confronting international businesses.
2. Explain how domestic laws affect the ability of firms to conduct international business.
3. List the ways firms can resolve international business disputes.
4. Describe the impact of the host country's technological environment on international business.
5. Identify the factors that influence national accounting systems.
6. Explain how firms can protect themselves from political risk.
LECTURE OUTLINE
OPENING CASE: Harry Potter Goes to China
The opening case raises several issues associated with successfully navigating legal and political obstacles in the marketing of J.K. Rowling’s Harry Potter books in China.
Key Points
• Children’s books in China are often political tools used to shape young readers’ values.
• Much of the “whimsy” of Rowling’s writing was difficult to capture in Chinese.
• As Harry Potter was being launched in China, its release was jeopardized by a government campaign against “feudal superstition.”
• A counterfeit fifth Harry Potter novel (titled Harry Potter and the Leopard-Walk-Up-to-Dragon) was being sold as if it had been authored by J.K. Rowling.
• Two weeks after the release of Harry Potter and the Half-Blood Prince, unauthorized Chinese translations of the book were available for sale on the streets of Beijing.
• Despite widespread piracy, an estimated 8 million legal copies of Rowling’s works have been sold in China to date.
CHAPTER SUMMARY
Chapter Three explores the legal, political, and technological environment within which international businesses operate. The chapter begins with a discussion of the different types of legal systems international companies may encounter. It then goes on to discuss the way technological environments vary across