Cross-border legal disputes - Political risk Components - Answer-PRI, ORI, R factor
/.Dealing with cross-border legal disputes - Answer-different ethical standards: litigation-
lawyer/mediation-voluntary neutral party compromise / arbitration-binding neutral party
decision
/.Enforcing sanctions - Answer-co-exist unilaterally :( multilaterally :) / hard to agree
/.General global environment - Answer-political/geal enviro in home/host & general
global enviro
/.Government organization and political stability - Answer-dictatorship, oligarchy,
democracy
/.Home country - Answer-Embargoes & sanctions, export controls, import controls,
boycotts, regulations of firm's international behavior)
/.Home country - Boycotts - Answer-firms refuse business, political (Disney-Mulan),
historical (China-Jap)
/.Home country - Embargoes & sanctions - Answer-govt distort free trade (adversarial &
political ≠ econ
/.Home country - Export controls - Answer-deny/delay strategic goods by adversaries
(Iran - nuke program) - ZTE - $1.4b fine (violating iran sanction) ban of US suppliers
(25-30%)
/.Home country - Import controls - Answer-restrictions on global marketers (most
efficient supply hard find)
/.Home country - International business behavior - Answer-home regs (legal, moral,
ethical boundaries)
/.Host country - Answer-legal and political environment = major impact)
/.Host country - Political risk - Answer-risk of loss when investing = change political
structure (tax/tariffs)
/.Impact of sanctions - Answer-loss of business/local export revenue (forecast)
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